Japan's Matcha Boom Is Causing a Tea Shortage — What U.S. Buyers Need to Know (2026)

Japan's Matcha Boom Drives Tea Shortages and Price Hikes Across the Industry

If you've noticed tighter supply or rising costs on Japanese matcha and green tea products in 2026, you're not imagining it. A widening global matcha craze is reshaping Japan's entire tea industry — creating shortages, driving up prices at every level of the supply chain, and forcing major producers to rethink how they grow and source tea leaves.

Record Export Volumes Reflect Surging Global Demand

Japan's green tea exports — including matcha — have been climbing steadily for years, and 2025 marked a major milestone: exports surpassed the 10,000-metric-ton threshold for the first time, reaching a record 12,612 metric tons. According to Nippon TV News NNN, approximately 70% of that volume consisted of powdered green tea products, primarily matcha (抹茶 — maccha in Japanese, a finely stone-ground powdered tea made from shade-grown tea leaves known as tencha). The global matcha market has grown into a massive commercial force, with demand coming from cafés, food manufacturers, and consumers across North America, Europe, and Asia.

Domestic Shortages Are Already Being Felt

The surge in export demand is creating real strain inside Japan. Ito En (伊藤園), one of Japan's largest beverage companies, publicly warned that Japan's overall domestic tea production has declined by 30% over the past 20 years, driven by an aging farming population, a shortage of successors, and shrinking cultivation areas. The company has responded by purchasing entire tea harvests from contracted farms to stabilize supply — but those measures haven't stopped prices from rising.

In March 2026, Ito En raised prices on its green tea beverage lineup by 5% to 25%. Its flagship product "Oi Ocha" (お～いお茶), Japan's best-known bottled green tea, increased in price by ¥21 (approximately $0.14 USD) per bottle.

Matcha Prices Are Doubling at the Retail Level

The price pressure is particularly acute for matcha. Masuda Kanzo, the owner of Masudaen Sohonten (増田園総本店), a Japanese tea specialty shop in Asakusa, Tokyo with over 150 years of history, described dramatic cost increases in an interview with Nippon TV. He noted that a single cup of matcha at his shop increased by ¥100 (approximately $0.68 USD) in April–May 2026. More strikingly, a 30-gram can of premium matcha — a standard retail size — has gone from approximately ¥5,000 (approx. $34 USD) to ¥11,880 (approx. $81 USD), essentially more than doubling in price.

The root cause, he explained, is straightforward: tea farmers across Japan are shifting their cultivation toward matcha production — specifically toward tencha (てん茶), the shade-grown leaf that is ground into matcha powder — because it commands significantly higher prices in overseas markets. That shift reduces production of other Japanese teas such as sencha (煎茶, steamed green tea leaves commonly used for everyday brewing) and gyokuro (玉露, a premium shaded tea), reducing overall supply and pushing prices up across the board.

Why This Matters for U.S. Matcha Importers and Café Buyers

For U.S. café owners and buyers sourcing matcha directly from Japan, these market conditions have direct implications:

• Supply constraints are structural, not temporary. Japan's tea farming workforce has been shrinking for decades. Even as demand climbs, total production capacity remains under pressure.
• Premium matcha prices are rising sharply. Ceremonial and high-grade culinary matcha are experiencing the steepest increases as competition for quality tencha intensifies globally.
• Other Japanese teas are being affected too. The shift to matcha production is reducing availability of sencha and other green teas, which can affect your menu options and ingredient costs if you carry broader Japanese tea offerings.
• Securing reliable sourcing relationships is more important than ever. Working with established Japanese wholesale suppliers who have direct contracts with tea farmers offers the best protection against spot-market volatility.

Industry Eyes "Next Matcha": Yomogi as an Emerging Alternative

Amid the shortage, one unexpected ingredient is attracting attention in Japan as a potential complement — or even partial substitute — to matcha: yomogi (よもぎ), Japanese mugwort, a wild plant that grows throughout Japan. Yomogi produces a vivid green color with smaller quantities than matcha, is naturally caffeine-free, and has strong appeal among health-conscious consumers. According to the Nippon TV report, one Japanese company that handles yomogi and wagashi (traditional Japanese confectionery) ingredients saw shipments reach a record 754 metric tons in 2025. A yomogi-themed café also opened in Nagahama City, Shiga Prefecture in April 2026, offering yomogi lattes and traditional yomogi mochi rice cakes. Whether yomogi becomes a mainstream café ingredient outside Japan remains to be seen, but the trend is worth monitoring for forward-thinking buyers.

What to Watch Going Forward

The matcha supply and pricing situation in Japan is evolving quickly. Major Japanese beverage companies like Ito En are actively working to expand domestic cultivation and stabilize supply chains, but meaningful results will take years. For buyers in the U.S. market, this is a critical time to review your sourcing strategy, lock in pricing agreements where possible, and stay informed about developments in Japan's tea industry.

We will continue to report on matcha market conditions, pricing updates, and sourcing news directly from Japan. If you have questions about current availability or pricing, contact us directly.

Source:
Nippon TV News NNN / Yahoo! Japan News (May 12, 2026): "世界的抹茶ブーム"過熱" 日本茶が品薄＆価格高騰　大手飲料メーカーも危機感"
https://news.yahoo.co.jp/articles/621db7dc8c465e9cee913815293d539f8e8152d2