Why Everyone Loves Matcha — From Ice Cream to Latte

In a Shanghai subway station, there’s a small shop famous for one thing: everything on the menu is matcha-flavored. Matcha ice cream, matcha puffs, matcha taro balls, matcha pudding, matcha lattes — the list goes on. It’s a flavor profile that’s neither overwhelmingly sweet nor heavy, and increasingly, people can’t get enough of it.

If you’ve ever wondered why matcha shows up in everything from desserts to drinks and whether it’s really worth the hype — the short answer is yes. Global demand for authentic Japanese matcha is soaring, prices for quality matcha ingredients have risen, and even classic Western treats are being reinvented with this uniquely bitter-sweet green tea powder.

What Exactly Is Matcha — And Where Does It Come From?

Matcha originated in China during the Tang Dynasty, reaching its peak during the Song Dynasty. But by the Ming Dynasty, the practice of whisking powdered tea had faded in favor of steeped loose-leaf tea. This tea culture was later introduced to Japan by Buddhist monks, notably Eisai, who brought back tea seeds and the Zen tea ceremony tradition. Over centuries, matcha evolved into a cornerstone of Japanese tea culture — so much so that it’s now considered a national treasure and is even served to visiting dignitaries.

Why Is Matcha So Popular Now — And Who’s Buying It?

According to Nikkei News, global demand for matcha — both in Japan and abroad — has been steadily rising in recent years. That demand is reflected in production trends and shifting agricultural priorities across Japan. While overall Japanese tea production has declined since 2005, the production of tencha (the shaded leaf specifically used to make matcha) has hit an all-time high, with prices to match.

Data from the National Federation of Agricultural Cooperatives of Japan shows that in 2015, the average price of sencha (standard Japanese green tea) in Kyoto dropped 7% year-on-year, while the price of first-harvest tencha rose 27%, reaching ¥4,720 per kilogram.

Which Regions Are Making More Matcha?

Traditionally, Uji in Kyoto Prefecture and Nishio in Aichi Prefecture have been Japan’s most famous matcha-producing regions. But with global and domestic demand on the rise, other areas are joining in. Shizuoka and Fukuoka prefectures, which historically focused on sencha production, are now ramping up their matcha output as well.

What’s Driving the Matcha Boom in Food and Drinks?

Matcha’s mild, slightly bitter taste lends itself well to food products. It adds complexity without overwhelming sweetness, making it popular in everything from desserts to beverages. Marumitsu Seicha, a major Japanese green tea producer, reports a fivefold increase in matcha production over five years due to rising orders from Western-style pastry makers and coffee chains. They expect annual growth to continue at around 3%.

Is Your Matcha Dessert Really Made With Matcha?

As the popularity of matcha-flavored products grows, so does the cost of quality ingredients. Tencha prices have gone up, dairy costs are climbing, and that’s affecting retail prices. For example, Tsujiri, a historic Kyoto tea house, raised prices on seven of its best-selling products — including its signature matcha ice cream — by around 10% starting October. And yes, that means your favorite matcha puff probably costs more than the plain version.

How Popular Is Matcha Outside of Japan and China?

Half of Japan’s tea exports go to the United States, where the term “MATCHA” has become mainstream. Matcha-infused coffees and juices are increasingly common. Overseas markets represent a growing share of Japan’s tea business. Itoen, a major Japanese tea company, reported a 10% year-on-year increase in total tea exports for 2015 — around 500 tons — with matcha and related products accounting for more than half. Export lead times have also stretched from one month to two due to higher demand.

Are Foreign Markets Changing How Matcha Is Made?

Japanese tea producers are adapting to international tastes. Matsukawatea, a long-established tea wholesaler, is collaborating with German firms to explore opportunities in Europe. “We can’t impose Japanese values directly,” said President Sugimoto. “Many consumers overseas prefer sweetened or scented teas. Adapting to local preferences is essential.”

Wait — Is Your Matcha Actually From Japan?

Globally, China dominates the green tea export market for products marketed as containing matcha, supplying 70% of the world’s supply. Japan’s share is growing but remains under 1%. However, there’s a big difference in how matcha is made. In Japan, it’s produced exclusively from shade-grown tencha leaves using a traditional, labor-intensive process. In contrast, many products labeled as “matcha” outside Japan — including popular cakes, cookies, and ice creams — are often made with ground standard green tea powder, not true tencha-derived matcha. The price difference? Up to 30 times. Even with that gap, Chinese producers are putting competitive pressure on Japanese matcha by pricing their products at less than half the cost.

Frequently Asked Questions

What is the difference between matcha and regular green tea?

Matcha is made from shade-grown tencha leaves that are ground into a fine powder, whereas regular green tea (like sencha) is made from steeped loose leaves. Matcha contains the whole leaf, delivering more caffeine and antioxidants, and has a richer, more umami flavor. Regular green tea is lighter and is typically steeped and discarded.

Why is authentic matcha more expensive than green tea powder?

Authentic matcha is made from shade-grown tencha leaves using a labor-intensive process that includes hand-picking, shading for several weeks, and stone-grinding the leaves into powder. This process is time-consuming and produces lower yields, driving up the cost. Most “matcha-flavored” products use cheaply ground green tea powder instead.

Which countries consume the most matcha?

Japan remains the cultural and production center of matcha, but the United States is the largest global consumer. Japan exports nearly half its tea to the U.S., where matcha is widely used in drinks and desserts. Other markets like China and parts of Europe are also growing quickly.

Why are matcha desserts more expensive than regular ones?

Authentic matcha ingredients, especially high-quality tencha, are costly due to limited production and intensive cultivation. Additionally, rising dairy and ingredient prices have led to price hikes in popular matcha treats like ice cream and puffs, with some shops raising prices by up to 10%.

Is matcha only used in sweets and drinks?

No. While matcha is most popular in desserts and beverages, it is also used in traditional Japanese tea ceremonies and is increasingly appearing in savory recipes and health supplements. Its unique flavor and nutritional profile make it versatile in both food and wellness applications.

Does China produce real matcha?

China produces a large share of global “matcha-like” powder, but it is typically made by grinding regular green tea leaves, not shade-grown tencha. True matcha production in China is minimal, with Japan producing the vast majority of authentic matcha used in high-end culinary and ceremonial contexts.

Recommended FrontStreet Beans for Matcha Lovers

If you enjoy the complex, grassy notes of matcha, you’ll appreciate FrontStreet Coffee’s Ethiopia Humbera — a bright, floral Ethiopian single origin with notes of bergamot and juicy stone fruit. For something closer to a daily brew with balance, try their Yirgacheffe offering, which brings lemon zest and soft berry tones. Both beans highlight the kind of vibrant, vegetal qualities that overlap with the flavor profiles appreciated in high-quality matcha. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.