Japan's Matcha Boom Is Pushing Up Green Tea Prices — What US Importers

Japan's Matcha Boom Is Driving Up Green Tea Prices Across the Board

If you import Japanese green tea for your café or beverage business in the United States, here is a development you should not overlook. A global surge in matcha demand is quietly reshaping the entire Japanese tea market — and both loose-leaf tea prices and bottled green tea drinks are rising sharply in Japan as a result.

Bottled Green Tea Drinks See Major Price Hikes in March 2026

Major Japanese beverage companies including Ito En and Coca-Cola Japan raised prices on their green tea products in March 2026. One of Japan's most iconic bottled teas, "Oi Ocha" by Ito En, saw its suggested retail price increase from ¥172 (tax included) three years ago to ¥237 — a rise of approximately 38%. These are flagship products that reflect the broader cost pressures now rippling through Japan's entire tea supply chain.

Raw Material Costs Have Surged Up to 5x

The price hike is being felt at the retail tea shop level as well. Shokoen, a traditional Japanese tea retailer based in Itoigawa City, Niigata Prefecture, announced a price increase effective April 2026, raising prices on products under ¥1,000 by approximately ¥100 per 100g. Before the increase took effect, the shop ran a 50% extra quantity campaign through March 31 — a sign of just how dramatically costs have shifted.

According to Shokoen president Narumichi Matsuki, raw material prices had already risen to roughly 5 times their previous levels by the end of 2025, and new-harvest tea (shincha) in 2026 is expected to trade at 1.5 to 2 times last year's prices.

The Root Cause: Matcha Demand Is Displacing Sencha Production

The underlying driver of this price surge is the global matcha boom itself. As international demand for matcha has grown — particularly in the United States, Europe, and Southeast Asia — Japanese tea farmers who previously grew sencha have shifted their cultivation toward tencha, the raw leaf used to produce matcha powder.

"As demand for matcha grew, even farmers who had been producing regular sencha switched to growing tencha for matcha production. As a result, overall Japanese tea production has dropped by approximately 20%." — Narumichi Matsuki, President of Shokoen (as reported by TBS NEWS DIG / BSN, March 27, 2026)

This structural shift in cultivation is creating a supply squeeze across the entire green tea category. With fewer farmers producing sencha, leaf supply cannot keep up with steady domestic demand — and prices are rising accordingly.

Key Japanese Tea Terms for Context

Sencha (煎茶) — Japan's most common loose-leaf green tea, made from tea leaves grown in direct sunlight and steamed after harvest. It accounts for the majority of Japan's domestic tea consumption.

Tencha (碾茶) — The shade-grown leaf used as the raw material for grinding into matcha powder. Its cultivation requires shading the plants for several weeks before harvest, making it more labor-intensive than sencha.

Shincha (新茶) — Literally "new tea," referring to the first flush harvest of the season, typically in late April to early May. Shincha is highly prized for its fresh flavor and commands premium prices.

What This Means for US Buyers and Importers

For US café operators and wholesale buyers sourcing Japanese green tea, this market shift carries several practical implications:

Matcha prices are likely to remain elevated as demand continues to outpace supply, with no short-term correction expected before the 2026 harvest season.

Sencha and other Japanese loose-leaf teas are also rising in price, not just matcha — making the full Japanese green tea category more expensive to import.

Locking in supply agreements early, ideally ahead of the shincha (new-harvest) season in May, may provide better pricing stability.

Communicating transparently with customers about the reasons behind price adjustments — especially the matcha boom's impact on supply — can help protect your brand relationships.

The 2026 harvest season will be a key indicator of whether Japanese tea production volumes can begin recovering. Until then, the matcha-driven supply imbalance looks set to continue putting upward pressure on prices across the board.

Source:
TBS NEWS DIG / BSN (Niigata Broadcasting System) — "世界的な『抹茶ブーム』の裏で煎茶が足りない！新茶の季節を前に値上げ前の"5割増量"セールの茶店も" (March 27, 2026)
https://newsdig.tbs.co.jp/articles/-/2559883?display=1