Japan's Green Tea Exports Surge 42% in FY2025 Amid Global Matcha Boom

Japan's Green Tea Exports Surge 42% in FY2025 — What U.S. Buyers Need to Know

Japan's green tea export market is experiencing unprecedented growth, driven by the global matcha boom. According to trade statistics released by Japan's Ministry of Finance on April 28, 2026, green tea exports in fiscal year 2025 (April 2024–March 2025) reached 13,125 metric tons — a 42% increase from the previous fiscal year's 9,272 metric tons. Even more striking, the export value more than doubled to ¥84.7 billion (approximately $531 million USD), reflecting both surging demand and rising prices worldwide.

For U.S. cafés, restaurants, and foodservice buyers sourcing Japanese matcha, this data paints a clear picture: Japanese matcha is more in-demand than ever — and supply dynamics are shifting in ways that every importer should understand.

Matcha Powder Now Dominates Japan's Green Tea Exports

The breakdown of export volume tells an important story. Powdered green tea — primarily matcha — accounted for approximately 70% of total green tea exports in FY2025. Meanwhile, exports of other green tea categories, such as sencha (loose-leaf steamed green tea), actually declined year-over-year.

This shift reflects the explosive global appetite for matcha-flavored beverages, desserts, and health products — a trend that has been especially strong in the United States, Europe, and the Middle East. The Japanese government has officially designated green tea as a key driver of its agricultural and food export strategy, signaling continued institutional support for the industry's growth.

Understanding Tencha: The Raw Material Behind Every Cup of Matcha

Tencha (碾茶) is the shade-grown, steamed, and dried whole-leaf tea that is stone-ground to produce matcha powder. It is distinct from other green teas in its cultivation and processing method — tea plants are shaded for several weeks before harvest to boost chlorophyll, L-theanine, and amino acid content, giving matcha its signature vibrant green color and umami-rich flavor.

According to the Ministry of Finance data, tencha production increased for four consecutive years through 2024, as Japanese tea farmers respond to surging matcha demand. Producers across Japan's major tea-growing regions — including Uji (Kyoto), Nishio (Aichi), and parts of Shizuoka — have been actively converting fields previously used for sencha production into tencha cultivation. This transition, however, is neither quick nor simple: it requires significant capital investment in shade structures, new harvesting practices, and processing equipment.

Rising Prices: What Buyers Should Expect

The combination of strong global demand and constrained domestic supply has pushed matcha prices significantly higher. The per-unit export price of Japanese green tea has risen sharply, with the total export value of ¥84.7 billion (~$531M USD) representing more than 2.2 times the value of the previous fiscal year — a rate far outpacing the 42% volume increase alone.

At the same time, as tencha and matcha command premium prices, Japanese farmers are shifting away from sencha production. This has caused sencha supply to tighten as well, leading to price increases across nearly all categories of Japanese green tea. U.S. buyers sourcing any variety of Japanese tea should factor these price trends into their procurement planning for 2025–2026.

Cheap Imports Enter Japan — A Market Under Pressure

The matcha boom has created an interesting paradox within Japan's domestic tea market. As Japanese green tea commands higher prices on the export market, affordable foreign-grown green tea — primarily from China — has been flowing into Japan to fill domestic demand gaps. The Ministry of Finance data shows that imports of foreign green tea into Japan reached 5,801 metric tons in FY2025, an 82% increase year-over-year.

This influx of cheaper imported tea is placing pressure on small and mid-sized Japanese tea producers who serve the domestic market. According to data from Teikoku Databank, a leading Japanese business intelligence firm, 13 Japanese tea manufacturers closed or dissolved their businesses in 2025 — a record high, up from 8 the previous year. Approximately 40% of Japan's tea gardens are located in mountainous rural areas, where aging populations and difficult terrain make transitioning to tencha cultivation especially challenging.

What This Means for U.S. Matcha Importers

For American cafés and foodservice businesses that import Japanese matcha, several key takeaways emerge from this data:

• Prices will remain elevated. With tencha supply still catching up to global demand, premium ceremonial-grade and culinary-grade Japanese matcha prices are unlikely to fall significantly in the near term.
• Authentic Japanese origin matters more than ever. As the market fills with lower-cost alternatives, the provenance, quality certifications, and traceability of your matcha supply chain become critical differentiators for your business.
• Secure your supply early. Given the rapid pace of export growth and tightening supply, locking in forward contracts or building a consistent relationship with a reliable Japanese wholesaler is a smart strategy for 2025–2026 procurement.
• Japan's government is investing in the industry. Government backing for green tea as a flagship export product means ongoing quality standards enforcement, which benefits buyers who prioritize genuine Japanese matcha.

Ito En, one of Japan's largest tea companies and a firm committed exclusively to Japanese-grown tea, has publicly stated the need to "strengthen the production base and rapidly improve brand value" to ensure the healthy growth of Japan's tea industry. That commitment to quality and sustainability is shared by the farmers and producers that supply the Japanese matcha market.

Sourcing Japanese Matcha with Confidence

At Matcha Wholesale Japan, we work directly with established Japanese tea producers to bring you authentic, traceable Japanese matcha — ceremonial and culinary grades — shipped directly from Japan to your business in the United States. As the market evolves and supply tightens, our direct sourcing relationships ensure consistent quality and reliable availability for your café or foodservice operation.

Interested in securing your matcha supply for the coming season? Contact our team to discuss wholesale pricing and availability.

Sources:
"抹茶ブームで緑茶輸出急増　価格高騰、国内に海外産も" — Jiji Press / Yahoo! Japan News, published May 1, 2026.
URL: https://news.yahoo.co.jp/articles/f503a2c13e90f5eda6374927e436d4d61f0cbc7f

Japan Ministry of Finance — Trade Statistics of Japan, FY2025 Annual Report (PDF).
URL: https://www.customs.go.jp/toukei/shinbun/trade-st/2025/2025_215.pdf

USD conversion based on USD/JPY exchange rate of approximately ¥159.36 as of April 28, 2026.