Ibaraki Prefecture Launches First-Ever Matcha Production Zone Initiative in Japan

Ibaraki Prefecture Enters the Matcha Market: Japan Expands Production Zones

Japan's matcha industry is expanding beyond its traditional growing regions. Ibaraki Prefecture has announced that in fiscal year 2026, it will launch its first-ever initiative to cultivate matcha-producing zones within the prefecture — a significant development for global buyers tracking Japan's matcha supply chain.

Surging Demand Drives Nationwide Expansion

The backdrop to this initiative is remarkable growth in raw matcha material production. According to the National Federation of Tea Producers' Organizations (全国茶生産団体連合会), domestic production of tencha — the shade-grown, steamed, and dried leaf that is stone-ground into matcha — nearly doubled in just four years, rising from 2,736 metric tons in 2020 to 5,336 metric tons in 2024.

Tencha (碾茶): The raw material for matcha. Tea leaves grown under shade (to boost chlorophyll and amino acids) are steamed to halt oxidation, then dried without rolling. The dried leaf is then stone-ground into the fine green powder known as matcha.

This explosive growth reflects surging international appetite for matcha-flavored beverages and sweets, particularly across the United States, Europe, and Southeast Asia, fueled by the ongoing global Japanese food boom.

The Ibaraki Subsidy Program: Key Details

Despite growing demand, Ibaraki Prefecture currently has no tencha processing facilities — specifically, no tencha-ro (碾茶炉), the specialized drying kilns essential for producing tencha. Building a complete production line — including steaming, sorting, and drying equipment — requires an investment of approximately ¥200–300 million (approx. USD $1.26M–$1.89M at ¥158.7/USD), which has historically been a prohibitive barrier for producers.

To lower this barrier, the prefecture has allocated ¥400 million (approx. USD $2.52M) in its fiscal year 2026 budget. Under the program:

• Eligible producers and organizations can receive a subsidy covering up to two-thirds (2/3) of facility construction costs
• Applicants must submit a business plan, which the prefecture will evaluate based on feasibility
• Public recruitment of applicants begins this month (April 2026)

Voices from the Industry

Local producers have welcomed the announcement. One male producer involved in export activities told Ibaraki Shimbun: "Japanese tea is highly popular overseas, and matcha is especially booming right now. Other prefectures are already converting their fields to matcha cultivation. If both matcha and sencha quality improve, 'Ibaraki tea' as a brand will gain real momentum."

Haruo Tsukada, Chairman of the Ibaraki Prefectural Tea Producers' Federation, also commented: "Building a dedicated facility requires considerable investment, so the subsidy is very welcome. We want to coordinate with each producing region on how we can move forward."

The Ibaraki Prefecture Regional Promotion Division stated its goal plainly: "We want to fully support the front-runners of matcha production and create a ripple effect across Ibaraki's entire tea industry."

What This Means for US Matcha Importers

For US café owners, beverage directors, and matcha buyers, this development signals an important structural shift: Japan's matcha production capacity is diversifying geographically. Historically, premium Japanese matcha has been closely associated with established regions like Uji (Kyoto), Nishio (Aichi), and Yame (Fukuoka). Ibaraki's entry into the matcha supply chain — backed by public funding — could bring new origin options to market in the coming years.

It is worth noting that Ibaraki Prefecture already has a tea-growing heritage. The Furuuchi (古内) tea-growing area in Shirosato Town has a 400-year history, historically associated with Tokugawa Mitsukuni, the famous Edo-period feudal lord known for his love of tea. This cultural foundation gives Ibaraki credibility as it makes its first formal move into matcha production.

As demand for ceremonial and culinary-grade matcha continues to grow in the US market, supply chain diversification from Japan is a positive signal for long-term availability and pricing stability. We will continue to monitor Ibaraki's progress and keep our wholesale customers informed.

Source:
Ibaraki Shimbun Cross Eye / Yahoo! News Japan (Published April 8, 2026)
https://news.yahoo.co.jp/articles/afba2d270b0f5a6eb6ca4ac9d090a3e4865d27a1