It takes one hour to grind just 40 grams of matcha by hand, and the price of tencha hit a record $56 per kilogram in 2025. So what's behind the sky-high cost of that bright green latte?

In NGPF’s latest So Expensive activity, Why Matcha Is So Expensive, students explore how a centuries-old Japanese tea powder went from niche ceremonial drink to one of America's trendiest beverages. The video traces matcha's journey from Starbucks putting it on the map in 2006 to the modern-day supply crunch, where an aging farmer workforce, climate-damaged plantations, and the unregulated wild west of "ceremonial grade" labeling all collide. Students will unpack how these forces drive up the price of this favorite green drink.

Through this activity, students will:

• Watch a video from Business Insider's So Expensive series
• Identify the specific factors of production that impact a product or service's price
• Answer a few thought-provoking questions

Note: 

• We recommend skipping the taste test portion of the video as it does not include critical information. This segment is from 14:11-18:07.
• The video briefly mentions wine and sangria as an analogy to describe the various uses of matcha in sweetened beverages  

Learn More:

• How to implement the So Expensive activities with your students
• Looking for more ways to introduce economics into your personal finance classroom? Check out NGPF's Econ Collection!

About the Author

Sonia Dalal

Sonia has always been passionate about instruction and improving students' learning experiences. She's come a long way since her days as a first grader, when she would "teach" music and read to her very attentive stuffed animals after school. Since then, she has taught students as a K-12 tutor, worked in several EdTech startups in the Bay Area, and completed her Ed.M in Education from the Harvard Graduate School of Education. She is passionate about bringing the high quality personal finance content and instruction she wished she'd received in school to the next generation of students and educators. When she isn't crafting lesson guides or working with teachers, Sonia loves to spend her time singing, being outdoors, and adventuring with family and friends!

More posts by Sonia