Starbucks 0.47 Gains Amid Matcha Crisis as 630M Volume Drops to 175th Liquidity Rank

On August 5, 2025, Starbucks (SBUX) rose 0.47% as trading volume dropped to $0.63 billion, a 43.64% decline from the previous day’s activity, ranking it 175th in market liquidity. The stock’s modest gain occurred amid broader concerns over supply chain challenges impacting its key ingredients.

Starbucks is reportedly planning a strategic overhaul of its menu expansion process, though details remain undisclosed. Meanwhile, the global matcha shortage has intensified, threatening the availability of popular beverages. Supply constraints stem from Japan’s aging tea farmer population, record heat reducing harvests, and tariffs on Japanese imports. These factors have pushed matcha prices higher, with some suppliers doubling costs since 2024. Café operators report delays of six months or more for matcha deliveries, complicating inventory management for chains reliant on the ingredient.

Experts attribute the surge in demand to social media-driven trends and post-pandemic tourism in Japan, which has spurred global interest in matcha-based products. However, Japan’s limited arable land and labor shortages make scaling production difficult. Companies like Mizuba Tea Co. and Kettl note record sales but warn of further price hikes as tariffs and raw material costs compound. While U.S. consumers have shown resilience in spending on premium beverages, rising prices could test demand elasticity in the long term.

A backtested strategy of purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. The results highlight the role of liquidity concentration in short-term performance, particularly in volatile markets, where high-volume stocks react swiftly to market dynamics.