Japan's Largest Tea Brand Ito En Goes 100% Japan-Grown: What It Means

Ito En Commits to 100% Japan-Grown Tea Leaves as Global Matcha Boom Strains Domestic Supply

Japan's largest tea company, Ito En, announced on May 12, 2026 that it will push forward with a policy of sourcing exclusively domestic Japanese tea leaves for its flagship product line, Oi Ocha (おーいお茶). Starting with shipments from May 18, the company will print "Jun Kokusan Chacha 100%" (純国産茶葉100%) — meaning "100% Pure Domestically Grown Tea Leaves" — directly on its packaging. The move comes as a global matcha boom collides with a rapidly shrinking domestic Japanese tea farming industry.

The Scale of the Problem: Japan vs. China

At the announcement event, Ito En's Head of Marketing, Mitsumasa Shida, laid out a stark industry picture. Over the past 20 years, Japanese tea exports have grown approximately 11-fold, and production of tencha — the shade-grown green tea leaves used as the raw material for matcha — has increased roughly 4.5 times. This explosive export demand has been fueled in large part by international coffee chains introducing matcha-based beverages worldwide.

Tencha (碾茶) refers to the specially cultivated and processed green tea leaves that are stone-ground into matcha powder. It is grown under shade for several weeks before harvest to increase chlorophyll and amino acid content, giving matcha its signature deep green color and umami flavor.

However, the picture at home tells a different story. During the same 20-year period, Japan's domestic tea production volume has declined by approximately 30%, and the number of tea farming households has dropped by roughly 65%. Today, Japan produces about 70,000 metric tons of tea and exports roughly 12,000 metric tons. China, by contrast, produces approximately 3 million metric tons and exports around 300,000 metric tons — a scale that dwarfs Japan's output entirely. In 2026, imports of foreign-grown tea leaves — primarily from China — are tracking at more than double the volume of the prior year. Shida pointedly asked: "Can Japan's tea farming industry survive?"

Ito En's "New Tea-Growing Region Development" Initiative

To address this, Ito En has launched its "Shincha Sanchiku Ikusei Jigyo" (新茶産地育成事業), or New Tea-Growing Region Development Program. The company currently contracts with farmers cultivating a combined total of 2,648 hectares of tea fields, and has set a target to grow that to 2,800 hectares within five years. The initiative is designed to support sustainable, economically viable tea-growing communities across Japan.

Contracted farmers who spoke at the event echoed the importance of the program. Shogo Horiguchi of Horiguchi-en farm in Shibushi City, Kagoshima Prefecture, noted that while stable supply to Ito En's quality standards had previously been the priority, growing consumer demand for matcha and overseas markets now requires producers to think about end-consumer needs from the field level up. Daisuke Horiguchi of Kagoshima Horiguchi Tea Manufacturing (also in Shibushi City) welcomed the initiative, saying: "Amid rising tea prices and uncertainty about the future, having a clear direction forward is encouraging."

The "Genuine Japanese Tea" Labeling Problem

Shida also raised a critical issue around origin labeling. He pointed out that some teas sold as "kokusan" (国産 — domestically produced) in Japan actually contain tea extract, powder, or concentrate — ingredients that may not originate from Japan. Compounding the issue, several cases have been uncovered where Chinese companies were producing and selling tea products bearing trademarks that included the word "Uji" — one of Japan's most prestigious tea-growing regions — despite having no connection to the actual Uji region in Kyoto Prefecture.

In response to these concerns, the Japan Tea Industry Central Association has applied to register "Nihoncha" (日本茶 — Japanese tea) under Japan's Geographical Indication (GI) Protection System — a government-administered framework that protects regional food brand names, similar to how the EU protects designations like "Champagne" or "Parmigiano-Reggiano." Registration would give legal protection to the "Japanese tea" designation and help prevent misuse of origin labels both domestically and overseas.

What This Means for U.S. Matcha Buyers and Importers

For cafés, restaurants, and buyers in the United States sourcing authentic Japanese matcha, these developments carry direct implications:

Supply tightness is real. Domestic Japanese tea output is declining even as global demand surges. Expect continued pressure on availability and pricing for certified Japanese-origin matcha.

Origin verification matters more than ever. As labeling ambiguity and counterfeit "Uji" branding remain industry problems, working with verified Japanese suppliers with transparent sourcing documentation is increasingly critical.

Japan's GI registration for "Nihoncha" is in progress. Once in place, this will provide an additional layer of authentication for buyers seeking to confirm genuine Japanese origin — an asset for menu labeling, marketing, and customer trust.

The matcha category is growing, but so is scrutiny. The global boom in matcha drinks at chain cafés has accelerated demand for tencha. Buyers who lock in reliable Japanese supply relationships now will be better positioned as competition for authentic product increases.

Ito En's public commitment to 100% domestic sourcing is a significant market signal. As Japan's largest tea company puts its brand reputation behind the "pure domestic" standard, it is likely to raise the bar for origin transparency across the industry — good news for importers and buyers who have already invested in authentic Japanese matcha supply chains.