CHARLEBOIS: Why matcha may be the next pumpkin spice
If you're a matcha drinker, brace yourself — prices are likely heading up, and TikTok may be to blame.
What began as a traditional Japanese tea used in ceremonial settings has rapidly become a global wellness staple. Canada is no exception. Fuelled by social media and a surge in health-conscious consumer habits, matcha has gone mainstream. The Canadian market alone was valued at about $300 million in 2024, projected to reach $375 million by 2025 and nearly double to $700 million by 2035, according to Market Research Future. That represents a compound annual growth rate of approximately 7% over the next decade.
Today, matcha is found not only in lattes but in smoothies, baked goods, energy bars, and even cosmetics. Its rise reflects a broader trend in Canadian food culture: The growing appeal of global ingredients that promise both functionality and indulgence.
But matcha comes with a key economic constraint — supply. The production process is uniquely labour-intensive and deeply artisanal. Shade-grown, hand-picked, steamed, and stone-ground, authentic matcha — particularly from Japan's Uji region or parts of China — is difficult to industrialize. Canada, due to climate, cannot grow matcha domestically, meaning demand must be met through imports. The market's tightness leaves it exposed to price volatility as interest surges.
Already, we're seeing the effects. Ceremonial-grade matcha that sells for roughly $28 per 100 grams in Japan can retail for as much as $120 in Canada — a markup exceeding 300%. Even culinary-grade matcha, which typically costs $5 to $14 in Japan, often doubles in price on Canadian shelves. As demand continues to grow, especially for premium varieties, prices could climb by another 30-40% in the coming years.
There's also concern over authenticity. As matcha's profile rises, so too does the presence of lower-quality substitutes — powders that resemble matcha in colour but lack its nutritional properties and distinctive taste profile. Consumers may not always know the difference until they've overpaid.
Cafes and restaurants are already reporting supply challenges, and many are struggling to keep pace with customer expectations. This isn't a passing inconvenience — it's an early sign of a demand-driven imbalance that may persist.
Unlike fleeting trends like celery juice or butter boards, matcha's growth is supported by habit formation. Its caffeine content, antioxidant profile, and calming effects appeal especially to Millennials and Gen Z consumers looking for a healthier, more stable alternative to coffee. The fact that the industry — not just consumers — is embracing matcha also signals staying power. In many ways, matcha is positioned similarly to pumpkin spice two decades ago — only this time, with the added push of social media.
For traditional coffee drinkers, there may be a silver lining. As matcha draws more market share, coffee demand may stabilize. That's welcome news after a year in which retail coffee prices rose 25%, according to Statistics Canada.
In short, matcha is no longer niche. It's a case study in how consumer health trends, social media, and global trade dynamics can converge to reshape what — and how — we drink. If you're a coffee drinker, you might want to start promoting matcha yourself. Your wallet could thank you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
China's Stimulus Outlook Clouded by Surprise Economic Strength
(Bloomberg) -- China's economy surprised with signs of improvement even as deflationary pressures persisted and employment weakened, throwing fresh doubt over the likelihood of further monetary stimulus by Beijing in the face of higher US tariffs. Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Sao Paulo Pushes Out Favela Residents, Drug Users to Revive Its City Center Sprawl Is Still Not the Answer Mapping the Architectural History of New York's Chinatown Factory activity and construction had their strongest month of the second quarter in June, according to China's official purchasing managers' indexes released on Monday. The official manufacturing PMI remained in contraction but reached 49.7 from 49.5 in May — exceeding forecasts along with a measure of construction and services. Yet behind the headline figures was a more mixed picture of the world's second-biggest economy that left the market unsure of if and when policymakers might step up stimulus efforts. Traders dialed back bets on further monetary easing after the data release, with futures on 30-year government bonds falling as much as 0.6% — the most in a month. 'Overall, the better PMI data point to still decent momentum in the second quarter,' said Michelle Lam, Greater China economist at Societe Generale SA. 'But the weak employment indices put the sustainability of consumption recovery in doubt without more support later in the year.' A tariff truce with the US has led to a rebound in trade, contributing to a broad improvement in new orders for factories, builders and service providers. The latest PMI reading captured the first full month after Beijing and Washington agreed to a 90-day pause in their trade war. At the same time, sales prices are continuing to drop despite narrowing their decline across the sectors. What's more, manufacturing employment weakened, illustrating the weakness of domestic demand and the vulnerabilities still lurking in the labor market. What Bloomberg Economics Says ... 'Further employment shrinkage and the weakest confidence since the government's growth pivot last September highlight the lack of confidence beyond the immediate future. That's likely due to the mid-August expiration of the China-US trade truce. The government has continued to support the economy, as seen the acceleration in construction, but may hold back fresh stimulus until the latter part of 3Q.' — Chang Shu and David Qu. Click here to read the full report. With the People's Bank of China issuing a more optimistic assessment of the economy after its latest policy meeting, analysts are debating whether authorities will roll out fresh measures in support of growth in the coming three months. Some argue the urgency has decreased in the near term, as the pace of expansion stays on track to hit the official target of around 5% in the second quarter. Among factories, the new orders index expanded for the first time in three months, though a gauge of employment worsened again after a slight improvement in May. Among the 21 industries surveyed, more than half were in expansion territory, according to the National Bureau of Statistics. The Chinese economy has held up well over the past three months as it went through a rollercoaster ride of erratic decisions by President Donald Trump, who would hike tariffs only to have them suspended later. Exports kept growing, however, as overseas clients front-loaded orders, while a government subsidy program for consumer products pushed retail sales growth to the fastest since 2023. The Chinese government's earlier issuance of bonds this year also supported robust infrastructure investment and construction. Persistent deflation and weak consumer demand have shadowed the economy throughout the trade war. Property prices are struggling to bottom out, weighing on household wealth and confidence. The economic cross-currents are likely to complicate policymaking in the months ahead. The PBOC highlighted the recent improvement in its statement on Friday while also drawing attention to problems including insufficient demand and low consumer prices. The central bank vowed to use a flexible approach when deciding the pace of policies. It last cut interest rates and the reserve requirement ratio — which determines the amount of cash banks must set in reserves — in May. 'The economy shows a positive trend, and social confidence continues to increase,' the PBOC said. The central bank's view indicates 'a less dovish tone' compared with the previous quarterly meeting and 'signals limited appetite for significant easing in the near term,' Goldman Sachs Group Inc. economists wrote in a note on Saturday. They expect a 10-basis point policy rate cut and a reduction of half a percentage point in the RRR during the fourth quarter, when they anticipate a significant slowdown in economic growth. Others argue that the PBOC may ease monetary policy as soon as next quarter in order to ensure the economy stays on the right track. 'Policymakers might recognize that to sustain the growth momentum and counter subdued price levels, some modest easing might be needed,' said Jacqueline Rong, chief China economist at BNP Paribas, who expects the PBOC to cut the policy rate by 10 basis points in August. Societe Generale's Lam sees a possible window for additional stimulus in late third quarter, though it could be delayed to the subsequent three months. Apart from monetary easing, China could also make use of policy banks to inject new money for infrastructure. Authorities planned to let them raise 500 billion yuan ($70 billion) of capital to buy stakes in infrastructure projects, Bloomberg News reported in May. Additional fiscal stimulus is another possibility, though its shape is even less clear and will likely require a significant slowdown in growth. Economists at Morgan Stanley said Beijing may introduce 'a modest' supplementary fiscal infusion of up to 1 trillion yuan in the late third quarter or the start of the last three months of the year, 'when it sees two-three months of weaker hard data.' The strength of Chinese manufacturing in the rest of the year also remains in question given an unpredictable outlook for exports, with a more lasting trade deal still elusive. Economists surveyed by Bloomberg expect gross domestic product to expand 4.5% this year, significantly below the official target of around 5%. 'The question for policymakers are deflation and joblessness instead of growth,' said Raymond Yeung, chief economist for Greater China at Australia & New Zealand Banking Group Ltd. . 'I am not worried about China's GDP.' --With assistance from James Mayger and Wenjin Lv. (Updates throughouot.) America's Top Consumer-Sentiment Economist Is Worried How to Steal a House Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Apple Test-Drives Big-Screen Movie Strategy With F1 Does a Mamdani Victory and Bezos Blowback Mean Billionaires Beware? ©2025 Bloomberg L.P.
Bloomberg
34 minutes ago
- Bloomberg
China's Relentless EV Wave Threatens Australia's Die-Hard Habits
Thanks for reading Hyperdrive, Bloomberg's newsletter on the future of the auto world. An unstoppable wave of Chinese electric vehicles, some selling for less than A$30,000 ($20,000), is testing Australia's long-held love for diesel pickups and gasoline-powered SUVs. With more models due to arrive in coming months, it's not clear how much longer the country can hold out.
an hour ago
Canadian Prime Minister Carney says trade talks with US resume after Canada rescinded tech tax
TORONTO -- Canadian Prime Minister Mark Carney said late Sunday trade talks with U.S. have resumed after Canada rescinded its plan to tax U.S. technology firms. U.S. President Donald Trump said Friday that he was suspending trade talks with Canada over its plans to continue with its tax on technology firms, which he called 'a direct and blatant attack on our country.' The Canadian government said 'in anticipation' of a trade deal 'Canada would rescind' the Digital Serves Tax. The tax was set to go into effect Monday. Carney and Trump spoke on the phone Sunday, and Carney's office said they agreed to resume negotiations. 'Today's announcement will support a resumption of negotiations toward the July 21, 2025, timeline set out at this month's G7 Leaders' Summit in Kananaskis,' Carney said in a statement. Carney visited Trump in May at the White House, where he was polite but firm. Trump traveled to Canada for the G7 summit in Alberta, where Carney said that Canada and the U.S. had set a 30-day deadline for trade talks. Trump, in a post on his social media network last Friday, said Canada had informed the U.S. that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada. The digital services tax was due to hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It would have applied retroactively, leaving U.S. companies with a $2 billion U.S. bill due at the end of the month. Daniel Béland, a political science professor at McGill University in Montreal, called Carney's retreat a 'clear victory" for Trump. "At some point this move might have become necessary in the context of Canada-US trade negotiations themselves but Prime Minister Carney acted now to appease President Trump and have him agree to simply resume these negotiations, which is a clear victory for both the White House and big tech," Béland said. He said it makes Carney look vulnerable to President Trump's outbursts. 'President Trump forced PM Carney to do exactly what big tech wanted. U.S. tech executive will be very happy with this outcome,' Béland said. Canadian Finance Minister François-Philippe Champagne also spoke with U.S. Treasury Secretary Scott Bessent on Sunday. 'Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress,' Canadian Finance Minister François-Philippe Champagne said in a statement. Trump's announcement Friday was the latest swerve in the trade war he's launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the U.S. president poking at the nation's northern neighbor and repeatedly suggesting it would be absorbed as a U.S. state. Canada and the U.S. have been discussing easing on goods from America's neighbor. Trump has imposed 50% tariffs on steel and aluminum as well as 25% tariffs on autos. He is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period he set would expire. Canada and Mexico face separate tariffs of as much as 25% that Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 U.S.-Mexico-Canada Agreement signed during Trump's first term.
