Surge in the price of matcha as global demand soars, with US sales up by 86%

The price of matcha has surged, with sales of the powdered tea up by 86% in the US, according to new research.

The green beverage has gone viral on social media thanks to a trend for sweet colourful drinks made from milk, sometimes called "bright lattes".

As a result, the cost has risen as manufacturers have struggled to keep up with global demand.

Market research firm, NIQ, says retail sales in the US are up 86% from three years ago.

Donald Trump's tariffs may also be impacting costs in the US, although it is not clear if matcha will be exempt because it's a natural product not grown in significant quantities in America.

President Trump previously made an exception for cork from the European Union.

China has also raised prices because of labour shortages and high demand.

Japan, one of the world's biggest matcha producers, suffered a reduction in output in this year's harvest owing to poor weather.

Aaron Vick, a senior tea buyer with California-based tea importer GS Haly, claims he paid 75% more for the highest-grade 2025 crop of Japanese matcha, which will arrive later this year.

He added that lower grades of matcha will cost 30% to 50% more.

Chinese matcha, which is generally cheaper than the tea from Japan, is also getting more expensive, he added.

Mr Vick said: "People should expect an enormous increase in the price of matcha this year.

"It's going to be a bit of a tough ride for matcha devotees. They will have to show the depth of their commitment at the cash register."

The report did not outline an increase in prices for UK customers.

But Starbucks, a major player in the UK's coffee shop scene, says it sources matcha from China, Japan and South Korea.

(c) Sky News 2025: Surge in the price of matcha as global demand soars, with US sales up by 86%