It has been a busy start to summer. In May I traveled through some of Japan's tea regions (Yame, Uji, and Shizuoka). In June we had our first tea pop-up at our SUGOi Sweets shop and hosted a tea event at Life on MARZ with Temporary Teahouse. More events are being planned and we will have drink service at SUGOi Sweets every Saturday this summer. Please visit us to try a latte or cold brew and tell us what you think or what you would like to see us offer.
All we do would not be possible without you. We are grateful to all of our customers and partners who make it all happen. You show up to our events and continue to walk through our shop door, even when the heat index is above 100. As the world experiences a shortage of high-quality matcha, Marukyu Koyamean continues to supply us with our favorite blends (a new shipment arrived today and will be on the SUGOi Sweets shelves this weekend).
As we approach the end of June, and the first tea harvest of 2025 is complete, we can share the following updates. Please contact me if you have any questions about what follows.
MATCHA PRICING UPDATE
Summary of Factors Influencing Price. The price of matcha is increasing (see details below) because of some key variables. The biggest increase is happening at the tea tea "auction" market in Japan (where matcha producers both sell and buy tencha). The worldwide increase in demand, coupled with a smaller 2025 harvest, sent market prices 200-300% higher. The next impactful variables are production costs in Japan (steaming, blending, milling, etc.) and shipping rates, which also continue to increase. Here in the U.S. we have created some self-inflicting costs that directly increase the price of matcha. This includes the 10% tariff on Japanese tea, which directly increases our costs. The combination of these variables means higher prices for matcha.
A Few Factors to Watch. While the completion of the 2025 Spring Tea "Auction" Market has set the price of raw materials (tencha) for matcha, several variables may still impact the matcha price throughout the year. The ones to keep an eye on are exchange rates (currently favorable to the U.S. Dollar) and the current administration's tariff on Japanese goods (currently not favorable to U.S. matcha drinkers). Any major shifts in these two variables could continue to impact matcha prices in 2025.
MARUKYU KOYAMAEN: NEW PRICING. This week, we received a pricing update from Marukyu Koyamaen on their powdered teas (matcha and hojicha). As a result of rising costs in Japan, they have increased their prices 50-60% on all powdered teas. This increase is set for the summer and will be reviewed in October, when prices may change again.
What does this mean for the price we can offer you? It means all our prices need to increase too. To keep our prices low and matcha accessible, our margins have always been modest. As a result, we cannot absorb this increase and maintain the same prices. But, prices will not increase 50%. Instead, we will absorb some of these increased costs, hoping the current tariff is removed soon and market prices recede in 2026. What you can expect is that the price of our Marukyu Koyamaen ceremonial matcha will increase by around 30%. These new prices will go into effect this weekend.
Jason Rice
SUGOi Sweets + MOKOMA Tea
Co-Founder
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