How to Choose Matcha for Your Café: A Buyer's Guide

First Agri Team
How to Choose Matcha for Your Café: A Buyer's Guide

Key Takeaways

  • Use "Latte Grade" matcha ($60-90/kg), not Ceremonial — premium ceremonial matcha is overkill for lattes and actually tastes weaker when mixed with milk
  • Cost per drink is lower than espresso — at 3g per serving, high-quality matcha costs just $0.24 per drink, delivering 80%+ profit margins
  • 2025-2026 supply crisis is real — Kyoto production dropped 40%, prices doubled. Diversify to Kagoshima-sourced matcha for stability
  • Color is the #1 quality indicator — vibrant spring green means fresh, first-harvest tea. Yellow-green means oxidized or low-grade
  • Always request samples before committing — test with your actual milk to see how the matcha performs in lattes

Why Matcha Deserves a Spot on Your Menu

Matcha has evolved from a niche health trend into a mainstream café staple. If you're not offering it yet, you're leaving money on the table.

The Numbers Don't Lie

The global matcha market is projected to reach $11 billion by 2035, growing at 8% annually. In North America alone, approximately 80% of matcha consumption happens through cafés and foodservice — primarily as lattes and blended drinks.

But here's what matters for your business: matcha delivers higher profit margins than espresso drinks.

A well-made matcha latte commands a $1-2 premium over a standard latte, while your ingredient costs remain comparable or even lower. In cities like Sydney, the average matcha latte price has risen from $6.20 AUD in 2022 to $8.50 AUD in 2025 — and customers are paying it.

Why Customers Choose Matcha

Two factors drive matcha demand:

  1. "Clean" caffeine: Unlike coffee's spike-and-crash, matcha's L-theanine creates calm alertness. Health-conscious customers specifically seek this effect.
  2. Instagram appeal: That vibrant green color generates free marketing. Every customer photo is an advertisement for your café.

Understanding Matcha Grades (What Actually Matters for Lattes)

Here's a truth most suppliers won't tell you: Ceremonial grade matcha is NOT the best choice for lattes.

The "Ceremonial" Myth

"Ceremonial grade" has no legal or industry-standard definition. It's a marketing term suggesting the matcha is good enough to drink with water only (traditional tea ceremony style).

The problem? When you mix premium ceremonial matcha with milk, its delicate umami notes get overwhelmed by dairy fat. Customers often describe it as "weak" or "bland" — not exactly what you want after paying top dollar.

What Actually Works: Latte Grade

Experienced baristas and tea merchants recommend "Latte Grade" or "Premium Culinary" matcha for milk-based drinks. This isn't a compromise — it's the right tool for the job.

Latte grade matcha:

  • Contains a blend of first-harvest (spring) and second-harvest tea
  • Has slightly more body and astringency
  • Stands up to milk instead of disappearing into it
  • Costs 30-50% less than ceremonial grade

The mild tannins in latte-grade matcha actually complement milk's sweetness, creating that distinctive matcha flavor customers expect.

Grade Comparison for Café Use

Grade

Price (USD/kg)

Best Use

For Lattes?

Premium Ceremonial

$150-300+

Straight (water only)

No — too subtle, cost prohibitive

Standard Ceremonial

$90-140

Specialty menu items

Limited — premium positioning only

Latte / Barista Grade

$60-90

Lattes, frappes

Yes — recommended

Culinary (High)

$40-60

Pastries, creams

Maybe — if budget-focused

Industrial

$20-35

Mass production

Never — ruins your reputation

Warning: If you find "vibrant green" matcha under $50/kg, be skeptical. It may contain colorants or be extremely old stock.


Cost Per Drink Calculator: The Real Economics

Let's break down exactly what matcha costs you per drink.

Standard Recipe (12oz Hot Matcha Latte)

Component

Amount

Unit Cost

Cost per Drink

Matcha powder

3g

$0.08/g

$0.24

Milk (oat/dairy)

250ml

$2.50/L

$0.62

Sweetener/syrup

10ml

$0.05

Cup & lid

1 set

$0.20

Total COGS

$1.11

Why 3 Grams?

This is the industry-standard sweet spot:

  • 2g: Too weak — matcha flavor gets lost in milk
  • 3g: Optimal balance of flavor and cost
  • 4g: Diminishing returns, unnecessary expense

Profit Margin Analysis

Metric

Calculation

Selling price

$6.50 (US average)

Cost of goods

$1.11

Gross profit

$5.39

Gross margin

82.9%

Compare this to a specialty espresso drink using 18g of $30/kg beans: your coffee bean cost alone is $0.54 — more than double the matcha cost.

And here's the kicker: matcha lattes command higher prices than coffee lattes. Customers perceive them as a "healthy luxury" and expect to pay more.


The 2025-2026 Supply Reality (What Buyers Must Know)

If you're sourcing matcha in 2025 or 2026, you need to understand what's happening in Japan.

The "Kyoto Shock"

In 2024-2025, Kyoto Prefecture (home to prestigious Uji matcha) experienced devastating climate impacts:

  • Production dropped 40% for hand-picked tencha (matcha's raw material)
  • Auction prices more than doubled — from ¥20,024/kg to ¥43,330/kg
  • Some lots sold at 3x previous year prices

The cause: extreme temperature swings during the critical spring harvest season damaged tea plants and reduced the quality-defining umami compounds.

What This Means for Your Business

  • Prices on "Uji matcha" have skyrocketed
  • Some suppliers are rationing or refusing new customers
  • Quality inconsistency is increasing as blenders stretch limited supplies

The Solution: Kagoshima

While Kyoto struggles, Kagoshima Prefecture in southern Japan has emerged as a stable, high-quality alternative:

  • Now Japan's #1 tea-producing region by volume
  • Strong in cultivars perfect for lattes (Saemidori, Okumidori)
  • Better resistance to climate fluctuations
  • 30-40% lower prices than Uji at equivalent quality levels

For 2026 procurement, diversifying to Kagoshima-sourced matcha isn't a compromise — it's smart risk management.


What to Look for in a Supplier

Price is just one factor. Here's what separates reliable suppliers from risky ones.

Consistency

"It's an agricultural product, so taste varies" is an excuse. Good suppliers use blending expertise (gōgumi) to deliver the same color and flavor year-round. Ask for their consistency guarantee.

Freshness and Inventory Turnover

Matcha degrades from the moment it's ground. Best practices:

  • Supplier ships monthly from Japan via air freight (not sea)
  • Stock doesn't sit in warehouses for 6+ months
  • Clear production/harvest dates on packaging

Red flag: Sea freight from Japan to Europe/US takes 40-55 days. Container temperatures can exceed 50°C (122°F) crossing the equator, essentially "cooking" the matcha and turning it brown.

Documentation

Especially for European markets with strict regulations:

  • Organic certification (JAS/EU Bio/USDA) with valid certificates
  • Pesticide residue reports (CoA) per lot
  • Radiation testing documentation (for Japan-origin products)

Minimum Order Quantities

Source Type

Typical MOQ

Lead Time

Best For

Local distributor

1-5kg

2-5 days

Testing, small cafés

Direct from Japan (wholesale)

5-20kg

5-10 days (air)

Established cafés

Factory direct (OEM)

50-100kg

3-4 weeks

Chains, private label


10 Questions to Ask Before Ordering

Use this checklist when evaluating any matcha supplier:

Product Quality

  1. What harvest is this matcha from? (First harvest/spring is essential for good color)
  2. What's the production date? (Should be within 6 months)
  3. Is it stone-ground or jet-milled? (Both acceptable; stone-ground is traditional)
  4. Can you provide a Certificate of Analysis (CoA)?

Supply Chain

  1. How do you ship from Japan? (Air freight is mandatory for quality)
  2. What's your inventory turnover rate? (Monthly fresh shipments are ideal)
  3. Can you guarantee consistent flavor batch-to-batch?

Business Terms

  1. What's your MOQ and can I start smaller for testing?
  2. Do you offer samples before I commit?
  3. What happens if I receive a substandard batch? (Return policy)

FAQ

What grade of matcha should I use for lattes?

Use Latte Grade or Premium Culinary ($60-90/kg), not Ceremonial. Ceremonial grade is designed for drinking with water only — its subtle flavors disappear when mixed with milk. Latte grade has more body and actually tastes better in milk-based drinks while costing significantly less.

How much matcha should I use per drink?

3 grams per 12oz latte is the industry standard. This delivers noticeable matcha flavor without excessive cost. Using 2g results in a weak, disappointing drink that damages your reputation. Using 4g+ adds cost without proportional flavor improvement.

How long does matcha stay fresh?

  • Unopened (frozen): Up to 12 months
  • Unopened (refrigerated): 6 months
  • Opened: 30-60 days maximum

Store opened matcha in an airtight, opaque container away from heat sources. Never store near your espresso machine — heat and steam destroy matcha within days.

Why is matcha so expensive right now?

The 2024-2025 harvest in Kyoto was devastated by extreme weather, reducing production by 40% and more than doubling auction prices. This supply crisis is affecting the entire market through 2026. Consider sourcing from Kagoshima, which maintained stable production and offers excellent quality at lower prices.

Can I get samples before placing a large order?

Yes — and you should never commit without sampling first. Reputable suppliers offer sample packs (typically 100-500g) for a nominal fee. Test the matcha with your actual milk and preparation method. What looks good on paper might perform poorly in your specific setup.


Ready to Source Quality Matcha for Your Café?

Finding the right matcha supplier shouldn't be complicated. At First Agri, we specialize in connecting cafés with high-quality Japanese matcha at fair prices.

What we offer:

  • Premium Latte Grade matcha sourced from Kagoshima and Nishio
  • Air freight delivery in 7-14 days (not months)
  • Flexible MOQ starting at 5kg
  • Free samples for qualified café buyers

Request a Café Sample Pack →


References & Data Sources

  1. Fact.MR Global Matcha Market Report 2025-2035
  2. Kyoto Prefecture Tea Association Auction Data 2025
  3. Japan Tea Export Council Statistics
  4. Specialty Food Association Market Analysis
  5. Australian Coffee Traders Association Price Survey

This guide is updated quarterly to reflect current market conditions. Last update: January 2026.

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