Japan Tea Prices: Autumn/Winter Bancha Jumps 6x as Producers Shift to Tencha for Matcha

Japan tea prices are showing unusual volatility, according to a report from Shizuoka, Japan.

The report says autumn/winter bancha leaf trading prices in Shizuoka rose to nearly six times the 2024 level because bancha leaves have become difficult to secure nationwide.

This “nearly 6x” figure refers to autumn/winter bancha leaf, not matcha powder prices.

What the report says is happening

A Shizuoka tea merchant interviewed in the report says it has been difficult to purchase the volume they normally would, and that this is a nationwide challenge for wholesalers.

With supply tightening, the report says trading prices for Shizuoka-origin bancha leaf surged to nearly six times last year’s level.

The report also notes repeated price hikes for PET bottled tea in Japan, with “over 200 yen per bottle” becoming increasingly common.

What “bancha” is used for (in this report)

The report states that bancha is mainly used as a raw material for PET bottled tea.

It also says the merchant expects bancha production to keep declining and is considering entering production to secure raw material supply.

Why matcha demand is linked to leaf tea supply

The report points to an overseas-driven matcha boom as a key factor behind the disruption.

It explains that more producers are switching to tencha (碾茶), identified in the report as the raw material for matcha, and that this shift is reducing production of sencha (leaf-brewed green tea).

Why the shift from sencha to tencha is structural

The report contrasts cultivation: sencha in Shizuoka is grown under sunlight, while tencha for matcha is grown by blocking sunlight.

It also contrasts processing: sencha is steamed and rolled to finish, while matcha is produced by drying first and then milling into powder.

Investment signals from Shizuoka

The report says one cooperative invested 200 million yen in 2025 to switch half of its sencha manufacturing line to tencha manufacturing.

It reports that the new line increased output per line from about 100 kg to about five times that level, but capacity still cannot keep up with orders.

The report also says some producers who switched to tencha saw sales rise sharply versus 2024.

Source (Japanese)

TV Shizuoka report: https://www.sut-tv.com/news/single/index.php?id=35184