Local businesses respond to matcha mania, facing rising prices, supply shortage
HONOLULU (HawaiiNewsNow) – Expect to pay a little more for your matcha latte these days.
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Local business owners who use it in everything from drinks to desserts say Japanese producers are struggling to keep up with global demand for the finely ground powder from shade-grown green tea leaves.
A shortage and other pressures are pushing production costs higher.
“We try to keep prices steady, but our price did go up about 40–50% because of the tariffs and because of the shortage. Because it’s going to auction, it’s selling at a higher price at auction now because of the demand worldwide,“ Ryan Conching of Moku Matcha.
Matcha sales jumped 86% from 2022 to 2025, driven by young consumers who appreciate matcha’s health benefits, clean, long-lasting caffeine kick, and presentation.
“It’s so pretty and all the different things you can do with it, and see the fading of the color, just trying new different flavors,” said matcha fan Ava Lee.
Shop owners say it’s getting harder and more expensive to secure premium matcha.
“Everyone wants the top grade matcha, the ceremonial matcha. That’s only maybe 5% of the total matcha that’s produced,“ Conching said.
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Matcha doesn’t have an official grading system, but vendors will use terms like ceremonial and premium, with A1 and A2 referring to hand-picked, centuries-old high grade matcha, which is too expensive for regular consumers.
Businesses look for a balance of quality and price.
“We sell A3 grade, which is still ceremonial matcha. It’s usually not as bitter, smoother, and has some umami flavor, a little bit of sweetness, compared to the lower grade matcha that has a little bit of bitterness,“ he said.
If prices get too high, it could mean less green for the matcha craze.
“It could limit the amount I spend or the amount of time I actually drink matcha,” said matcha drinker Micah Tablit.
“I still got to play it a little safe with my money. So I try to spend wisely if I can,” fellow matcha fan Samantha Lay said.
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