Japan's Matcha Boom Drives New Tencha Processing Facility in Miyazaki — What It Means for U.S. Buyers

New Tencha Processing Facility Opens in Miyazaki as Global Matcha Demand Surges

Japan's matcha industry is expanding its production infrastructure in direct response to booming global demand. In March 2026, Miyazaki City's first-ever tencha (碾茶) processing facility was completed in the Takaoka-cho area of Miyazaki City, Miyazaki Prefecture — marking a significant milestone for Japan's southernmost major tea-growing region.

What Is Tencha?

Tencha (碾茶) is the raw processed tea leaf that is stone-ground to produce matcha. After harvesting, shade-grown tea leaves undergo steaming, drying, and de-stemming to become tencha before the final grinding step. The quality and freshness of tencha directly determines the flavor, color, and aroma of the finished matcha powder — making tencha processing facilities a critical link in the matcha supply chain.

About the New Facility

The facility was built by Miyazaki Ichicha-en, a cooperative established by 13 tea farming households across Miyazaki Prefecture. Construction was carried out with the support of Japanese government subsidies. The plant centrally manages tea leaves sourced from contracted tea fields in Miyazaki City, Saito City, and Kobayashi City.

The facility is projected to produce approximately 300 metric tons of tencha per year, making it the largest tencha processing plant in Miyazaki Prefecture. Full-scale operations are scheduled to begin in early May 2026.

Why This Facility Was Built: Global Matcha Boom + Labor Shortage

Two converging pressures drove the investment. First, worldwide matcha consumption — particularly in the form of matcha lattes, matcha sweets, and ready-to-drink beverages — has driven demand far beyond what existing production capacity can meet. Second, Japan's tea farming sector is facing a serious labor shortage due to rapid aging among farm operators.

Takeshi Koura, Representative of Miyazaki Ichicha-en, explained: "We are fortunate that a matcha boom is happening around the world, and demand for sweets and lattes has grown tremendously. But aging is advancing rapidly, and the farmers around us are finding it increasingly difficult to keep growing tea. Our goal was to build a tencha factory with an extended harvest window, creating a work environment where labor can be sustained without overburdening anyone."

A key advantage of tencha production is its extended harvest window compared to traditional green tea processing. Unlike some tea types that require rapid harvest in a narrow peak season, tencha can be processed over a longer period — reducing the concentration of labor demand and helping farms operate more sustainably with fewer workers.

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

For U.S. cafés, restaurants, and beverage brands sourcing Japanese matcha, this development signals that Japan's tea industry is actively scaling up to meet international demand rather than pulling back. The establishment of cooperative-model processing facilities — backed by government support and consolidating supply from multiple farms — is a positive sign for long-term supply stability and quality consistency.

Miyazaki Prefecture has historically been a smaller tea-growing region compared to Uji (Kyoto), Nishio (Aichi), or Kagoshima, but investments like this position it as an emerging supplier capable of producing matcha-grade tencha at commercial scale. As global matcha demand continues to grow, diversification of Japan's production regions benefits buyers seeking reliable volume.

The Bigger Picture: Japan's Matcha Supply Chain Is Adapting

This facility is one example of a broader structural shift occurring across Japan's tea industry. Farmers and regional cooperatives are investing in mechanization, centralized processing, and extended-harvest crop planning to address both the demand surge and the demographic challenge of an aging agricultural workforce. For buyers committed to sourcing authentic Japanese matcha, these developments reinforce Japan's capacity to remain the world's premier origin for ceremonial and culinary-grade matcha.

Source: UMK Miyazaki News / Yahoo! Japan News, April 22, 2026
https://news.yahoo.co.jp/articles/0eb4ba16739aa615b16261de578955e6566a7e3f