Japan Matcha Supply 2026: Ibaraki Tea's Global Comeback Story

Japan Matcha Supply 2026: Ibaraki Tea's Global Comeback Story

Japan's matcha export boom is reshaping the global tea market in 2026—and the numbers are impossible to ignore. According to a June 2026 report by JETRO (Japan External Trade Organization), Japan's green tea exports hit a record ¥72 billion (approx. USD 470 million) in 2025, nearly doubling year-over-year. Behind this surge is a compelling story from Ibaraki Prefecture, where one tea maker is leading a 300-year revival of Sashima-cha—the very first Japanese tea ever exported to the United States. For cafes, importers, and buyers sourcing Japanese matcha wholesale, understanding what's happening on the supply side has never been more critical.

Japan Matcha Exports Reach Record High in 2025

Japan's green tea export figures for 2025 tell a story of extraordinary momentum. Total export volume reached 12,612 metric tons—up 43.3% from the previous year—while export value climbed 98.2% to ¥72 billion (approx. USD 470 million), according to Japan's Ministry of Finance trade statistics cited in the JETRO report.

The United States remains by far the largest market, accounting for 40.7% of total export value. U.S. imports of Japanese tea reached ¥29.3 billion (approx. USD 191 million) in 2025, up 82.6% year-over-year, with volume growing 55.3% to 4,430 metric tons. Germany ranked second with ¥5.7 billion (approx. USD 37 million), while the U.K. saw a dramatic 403.9% surge in value to ¥4.7 billion (approx. USD 31 million). Other growing markets include Thailand, the Netherlands, Australia, and France—all posting strong gains.

These figures reflect a structural shift: global demand for matcha and powdered green tea is growing faster than Japan can currently supply, driven by health-conscious consumers and the mainstream expansion of Japanese food culture worldwide.

Ibaraki's Sashima-cha: A 300-Year History of Japanese Tea Export

Sashima-cha (さしま茶) is a variety of Japanese green tea grown in Ibaraki Prefecture and is widely regarded as the first Japanese tea to be exported to the United States. Cultivated since the Edo period in the former Shimosa Province, it carries centuries of heritage alongside genuine commercial pedigree.

Ibaraki Prefecture currently produces approximately 200–300 metric tons of aracha (荒茶, unrefined raw tea) annually. While the prefecture ranks second in the Kanto region after Saitama in tea production, its output faces ongoing pressure from an aging farming population, tea garden abandonments, and complex overseas pesticide residue compliance requirements—all of which limit export volumes.

Yet these challenges haven't stopped Matsuda Seicha, a vertically integrated tea producer in Yuuki-gun, Ibaraki, from pursuing global markets. President Koichi Matsuda tells JETRO that a decline in domestic demand prompted him to look abroad. When he discovered that Sashima-cha was historically the first Japanese tea exported to America, he made it his mission to repeat that achievement—this time on a larger, more sustainable scale.

How One Matcha Producer Cracked Western Markets in 2025

Matsuda Seicha's global breakthrough came not with Sashima-cha alone, but by pivoting toward matcha—the stone-ground powdered green tea that has become a global phenomenon. The company began sourcing matcha for export after observing surging international demand, having already received inquiries from overseas buyers asking whether they could supply it.

Leveraging JETRO's export support services—including domestic trade shows, overseas office briefings, and the Japan Street online catalog—Matsuda Seicha steadily built a pipeline of international buyers. In 2025 alone, the company successfully closed deals with buyers in the Netherlands, Poland, Denmark, the United States, and Indonesia. Today, the company reports that overseas sales now exceed domestic sales.

Key Factors Behind Their Export Success

  • Speed of response: Matsuda Seicha makes it a policy to send quotes to trade show contacts the same day—or by the following morning at the latest.
  • Grade flexibility: The company stocks matcha across multiple quality grades, from entry-level culinary grades to premium ceremonial-grade products suited for high-end cafes and restaurants. Organic matcha sourcing is also available.
  • Direct trade capability: For EU buyers requiring organic certification, the company manages TRACES documentation—the EU's electronic system for verifying organic equivalency—working directly with importers and Japanese certification bodies.
  • Government support utilization: Subsidies such as the "Ibaraki Challenge Fund" (いばらきチャレンジ基金) helped offset exhibition and travel costs for overseas market development.

In 2026, Ibaraki Prefecture plans to launch dedicated support programs to develop new matcha cultivation areas—a first for the prefecture—reflecting the scale of both the opportunity and the supply challenge ahead.

Supply Constraints and the Chinese Matcha Competition

For U.S. buyers sourcing matcha wholesale, one of the most consequential developments is the tightening of Japanese supply. Ibaraki's output is declining year-on-year due to farmer aging and garden abandonment. Japan's five main tea-producing prefectures (Shizuoka, Kagoshima, Mie, Kyoto, and Saitama) collectively produced 20,000 metric tons of aracha in 2025—down 10% from the prior year—while the total harvested area fell approximately 5%.

Simultaneously, Chinese-produced matcha is gaining ground in global markets. According to Matsuda Seicha's president, Chinese matcha is available at roughly one-third the price of Japanese matcha, with quality that has become increasingly competitive. This pricing pressure means Japanese producers must compete on differentiation—whether through terroir, traceability, organic certification, or flavor innovation.

Matsuda Seicha has responded by developing distinctive product variations such as strawberry matcha (いちご抹茶)—a flavored matcha blend targeting consumers who want a novel café experience. For buyers building a matcha wholesale program, this points to a broader trend: Japanese suppliers are investing in value-added products to justify premium pricing in an increasingly competitive global market.

What This Means for Cafes and Importers Sourcing Matcha from Japan

The data and the Matsuda Seicha story together underscore a market reality that U.S. buyers need to factor into their sourcing strategy. Demand for Japanese matcha wholesale supply is accelerating—but so are the constraints on the Japanese side. The combination of record export growth and declining domestic production means that reliable, long-term supplier relationships are becoming more valuable.

Ibaraki's story is also a reminder that Japan's matcha supply base extends well beyond Kyoto and Uji. Regions with deep historical roots in tea production—like Ibaraki's Sashima district—are actively re-entering the export market with competitive product lines and government-backed infrastructure. Buyers who diversify their sourcing to include these emerging regional suppliers may gain both price advantages and supply chain resilience.

Whether you're looking for ceremonial-grade matcha for a specialty café menu, culinary-grade powder for large-volume beverage programs, or certified organic options for health-focused brands, the Japanese market continues to offer options across the full spectrum. Browse our wholesale matcha from Japan product lineup to explore what's available for import.

Interested in Sourcing Japanese Matcha?

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Source: https://www.jetro.go.jp/biz/areareports/2026/512d1379296c064d.html

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