Matcha orders in Australian cafes and restaurants have surged by 133% year-on-year, with the $8 iced matcha latte now considered a staple on menus, according to an annual report by ordering platform Hey You and Westpac DataX. The demand is driven primarily by customers aged under 35, the report found.
From niche to mainstream
Donna Win, a 27-year-old small business owner and co-founder of the Matcha Club in Sydney, first tried a matcha latte in Japan in 2019 and described it as “love at first sip.” She had never been a coffee fan—it gives her “the shakes”—but had always enjoyed green tea. “It was like, wow, this is the real deal,” she said.
Returning to Sydney, she was dismayed by how few cafes were serving matcha. Less than a decade later, it has become a staple on Australian cafe menus. In 2024, Win and her sister started a social club to bring matcha enthusiasts together to cafe hop around the city.
The price and the pull
An iced matcha latte costs about $8—roughly $2 more than a standard milk coffee—but young Australians are undeterred. The Hey You and Westpac DataX report found a 133% increase in matcha orders year-on-year, with under-35s driving the demand.
The Japanese beverage, traditionally served unsweetened, without milk, and prepared in an involved tea ceremony, is now firmly in the mainstream. It has become the internet’s current beverage fixation, with over 5 million videos under the #matcha hashtag on TikTok, translating to real life as the glowing green drink dominates local coffee shops and international chains.
Supply strain in Japan
The boom has caused a strain on production and supply in Japan. The wholesale price of tencha, the loose leaves used to make matcha grown in Kyoto, has risen by 69% over the past year, from a 2025 high of 8,235 yen (A$82) per kilogram to an average price of 13,972 yen (A$122).
Sarah Xu, a thirtysomething head of operations, started drinking matcha last year and replaced her daily oat latte. She enjoys a more “mild start” to her mornings and believes matcha has health benefits compared to coffee. Matcha is high in antioxidants and anti-inflammatory substances, though it contains a compound that can affect the body’s ability to absorb medication. Xu adds supplements like cacao for focus or keratin for muscle recovery to her matcha, and thinks growing health-consciousness is a reason for the drink’s popularity.
Win says people she’s met through her social club also want to avoid the “coffee crash.” A standard serve of matcha contains roughly 70mg of caffeine, compared to 80-100mg in coffee.
Lifestyle and aesthetics
Jade Gillis, a 24-year-old hospitality worker, is neither a coffee nor tea drinker, but matcha has struck a chord. She has it three to four times a week, which she says “brightens my day.” Both she and Win agree matcha is particularly photogenic. “The green is really beautiful,” says Win. Adds Gillis: “Unfortunately, it is a bit of an aesthetic.” She says matcha has become wrapped up in a specific type of lifestyle that is removed from its origins—the “matcha girlies” doing their pilates and carrying “farmer’s market bags filled with greens.”
All three women believe matcha has transcended trend status. As Win points out, “McDonald’s has matcha.”
How to make matcha at home
Matcha latte typically contains milk and sugar, but traditional matcha is made with only ground matcha and water. Taka Kaneko, founder of Edomatcha and a certified Japanese tea instructor, says newcomers can just use a spoon to mix, but a chasen—a bamboo whisk—is vital for a smooth and velvety texture. These can range from $30 to $80.
To make one bowl of matcha, Kaneko mixes 1.5 to 2 grams of matcha into 60 to 80ml of hot water at 70 to 80C. He whisks in an “M” shape, slowly at first and then vigorously to create large bubbles. Getting the water ratio wrong is a common mistake from first-timers; too little powder makes the drink watery, while too much makes it thick and astringent.
The choice of matcha is also integral. Kaneko advises looking for a “first harvested” label instead of “ceremonial grade” or “culinary grade,” as it indicates the matcha was picked in its prime.
