Japan Matcha Market Updates

Japan Matcha Demand Stays Strong as Panic-Buying Era Ends

Sep 07 2026

Japan's matcha boom has not cooled down. According to a Jiji Press report, even after the panic-buying phase that emptied shelves last autumn subsided, demand for Japanese matcha from both domestic and overseas buyers remains strong. For cafes and importers relying on wholesale matcha from Japan, this signals that the current tight supply situation is a structural shift rather than a temporary spike, and sourcing strategies should be adjusted accordingly.

From Sold-Out Shelves to Sustained Demand

Ikeda Kenta, president of the long-established tea merchant Ikeda Seicha in Kagoshima Prefecture, described how last autumn, whenever his company listed 30-gram tins of matcha as "in stock" on its sales site, orders poured in and stock disappeared within minutes. That wave of buying, driven in part by customers stockpiling far more than they needed, has since eased. However, according to the report, strong inquiries from both Japanese and overseas buyers continue even now, suggesting that the underlying demand driving the boom is broader than a single rush of speculative purchases.

Tencha Prices Have More Than Doubled

The price surge behind this demand is concrete and well documented. Tencha, the shaded leaf that is dried and ground into matcha, has seen its average shipping price rise for five consecutive years, according to the National Federation of Tea Producers Organizations (Zenkoku Cha Seisan Dantai Rengokai). Last year, that average price reached ¥8,562 per kilogram (approx. USD 55), a 2.6-fold increase over the previous year. In Kagoshima Prefecture, which became Japan's top producer of aracha (unrefined tea) in 2024, negotiations between overseas buyers and local tea companies have reportedly surged as well.

What Is Driving the Boom, According to the Report

The Kagoshima tea trade association traces the roots of the global matcha wave back to 2006, when the US coffee chain Starbucks launched its matcha latte, introducing the drink to a wider Western audience. Its health-oriented image gained traction, particularly in the United States, and as coffee prices kept climbing, matcha became an attractive alternative. Social media influencers further amplified interest by showcasing matcha's vivid green color as visually appealing content, and the report states that this combination caused demand to "explode" last year.

Sourcing Reality: What We See on the Ground in Kagoshima

As a wholesale matcha supplier working directly with producers, we recognize this pattern from our own procurement conversations this season. Farmers who traditionally grew sencha, Japan's most common everyday green tea (a non-shaded, pan-steamed leaf typically brewed in a kyusu teapot), have been converting fields to tencha cultivation to capture the higher prices tencha now commands. This is not a rumor; it matches exactly what the report describes as an acceleration of sencha-to-tencha conversion among tea farmers eager not to miss the boom.

For buyers negotiating ceremonial grade matcha wholesale contracts, this shift has a direct practical consequence: the pool of growers still producing sencha is shrinking, which means tencha supply, while expanding, is still being allocated against rising global order volumes rather than a comfortable surplus. In our experience sourcing bulk ceremonial matcha, this is why lead times on confirmed lots have lengthened compared to last year, and why locking in volume commitments earlier in the season, rather than waiting for spot availability, has become the more reliable path for maintaining consistent inventory.

A Risk the Report Flags for the Industry

The article also raises a caution from Mitsumura Toru, executive director of the Kagoshima tea trade association: as sencha production shrinks and prices climb, everyday sencha is becoming harder to afford, and supermarket shelves are reportedly replacing Japanese green tea with alternatives like barley tea. He warns that if tea farmers lose the domestic sencha fan base once the matcha boom eventually fades, they could find themselves in a difficult position. This is a structural risk worth watching for anyone building long-term supply relationships with Japanese producers, since a grower base overly concentrated on tencha carries different volatility than one balancing both crops.

Practical Takeaway for US Buyers

Tencha prices have risen for five straight years and jumped 2.6x last year alone, so budgeting for continued price firmness, rather than a near-term correction, is the more realistic planning assumption right now.
Because farmer conversion from sencha to tencha is still underway rather than complete, buyers who secure ceremonial grade matcha wholesale volume commitments ahead of peak demand periods are better positioned than those relying on spot purchases.