Matcha has Become Inextricably Linked with Coffee Shops and Gen Z's Obsession with it has Caused the Cost of Matcha to Double – CoffeeTalk

Huge demand among Gen Z for matcha drinks has led to a near doubling of prices for high-grade matcha, according to Gabriel Shohet, co-founder of Black Sheep Coffee. He noted that the demand for the ‘ceremonial grade’ matcha from Japan has created significant supply challenges, resulting in price increases close to 100% over the past two years. Matcha, a powdered green tea celebrated for its antioxidant and anti-inflammatory properties, has gained popularity in the UK, particularly among younger consumers, leading to its incorporation into a variety of drinks and foods, such as matcha-infused waffles and ice creams.

Shohet mentioned that matcha products now represent 18% of Black Sheep Coffee’s sales across its 116 UK and Ireland locations. This heightened interest in matcha aligns with a surge in western tourism to Japan post-pandemic, where the weaker yen has attracted cost-conscious travelers. Despite rising ingredient costs, Shohet does not foresee a direct correlation between matcha price inflation and overall consumer price increases, emphasizing that matcha now comprises about 80% of the input cost for matcha lattes. He reassured customers that Black Sheep Coffee has maintained stable pricing, with no significant increases throughout the financial year 2025, despite facing inflationary pressures. Black Sheep Coffee, founded in 2013, distinguishes itself by using robusta coffee beans, aiming for further growth with plans to open many more stores. The company continues to navigate challenges while prioritizing affordability for its customers.

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