Japan's Matcha Exports Hit Record High in 2025 — What It Means for US

Japan's Matcha Exports Reach All-Time High as Global Demand Surges

Japan's matcha boom shows no signs of slowing down. According to data from Japan's Ministry of Finance, the export value of green tea—including matcha—hit a record high of ¥72.1 billion (approximately USD 453 million at ¥159/USD) in 2025. Green tea export volume also surpassed 10,000 metric tons for the first time in roughly 70 years. For US café owners, restaurant operators, and buyers importing matcha from Japan, these numbers signal both enormous opportunity and a tightening supply landscape worth watching closely.

The United States Is Japan's Largest Matcha Market

Among all export destinations, the United States ranks first, accounting for more than 30% of Japan's total green tea exports. Taiwan and Germany follow, reflecting broader growth across Asia and Europe. The global appetite for matcha is being driven by its health credentials—rich in catechins and Vitamin E—and its undeniable visual appeal on social media. As Nagata Masahiro, president of THE MATCHA TOKYO (a matcha specialty café chain with 54 overseas locations), puts it: "Health-conscious young consumers are actively choosing matcha over alcohol and coffee."

Japanese Farmers Are Shifting to Tencha — The Raw Material for Matcha

To meet surging international demand, the Japanese government is actively subsidizing the conversion of tea fields from sencha (traditional loose-leaf green tea) to tencha (碾茶, the shaded leaf that is stone-ground into matcha powder). Tencha is grown under shade coverings for several weeks before harvest to boost chlorophyll and amino acid content—this shading process is what gives high-quality matcha its characteristic vibrant green color, smooth texture, and umami-rich flavor.

Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) is providing subsidies for shading equipment and tencha processing machinery. As a result, producers are ramping up fast. One cooperative in Ashikubo, Shizuoka—Ashikubo Tea Works Agricultural Cooperative—invested approximately ¥200 million (approx. USD 1.26 million) in equipment in 2024 using government subsidies, expanding tencha cultivation from under 10% to 70% of its 17-hectare farmland. The cooperative's chairman, Matsunaga Tetsuya, noted that tencha prices in 2025 were approximately 6 times higher than in 2024, calling it a strong motivator for farmers to make the shift.

The Supply Crunch: Sencha Prices Are Rising Sharply

The rapid pivot to tencha production is creating an unintended consequence: a shortage of sencha, Japan's most widely consumed everyday green tea. Japan's total tea production has declined approximately 25% over the past 20 years—down to 75,100 metric tons in 2025—due to an aging farming population and labor shortages. New tea plants take about five years to reach harvestable maturity, making it impossible to quickly scale supply.

In Kagoshima Prefecture, Japan's top tea-producing region, the average auction price at the first new-tea trade of the season (April 2026) came in at ¥6,573 per kilogram (approx. USD 41.3/kg)—a 1.6x increase year-over-year. This price pressure has already rippled into the consumer market: beverage giants Ito En and Coca-Cola Bottlers Japan raised retail prices on bottled green tea (600–650ml) by approximately 10% in March 2026.

The Japan Tea Industry Central Association has flagged the need for balance. Executive Director Suzuki Sadami warned: "If production becomes overly concentrated in tencha, rising sencha prices could drive Japanese consumers away from tea altogether. We need to maintain a sustainable balance between the two."

Counterfeit "Uji Matcha" and the Rise of Chinese Competition

Quality assurance is an increasingly critical concern. Counterfeit products bearing the label "Uji Matcha"—the prestigious designation tied to Kyoto's Uji region, one of Japan's most celebrated matcha-producing areas—have been found circulating in the Chinese market. Kyoto Prefecture's agricultural division has called on Chinese authorities to strengthen enforcement. Meanwhile, China has rapidly scaled up its own domestic matcha production, and experts at the Kyoto Prefectural Tea Research Institute note that Chinese-grown matcha used in processed foods (confectionery, mix powders) is reaching a quality level that poses competitive pressure on Japanese producers in the commodity segment.

For US buyers sourcing premium matcha, this underscores the importance of working with verified Japanese suppliers who can document the origin, grade, and processing method of their product—particularly if you're sourcing ceremonial-grade or single-origin matcha for café menus.

What This Means for US Matcha Buyers and Café Owners

The current market dynamics point to a few key takeaways for US importers:

Premium matcha supply may tighten further. With farmer shortages, conversion timelines of several years, and record-high international demand, high-grade tencha supply will remain constrained through at least the mid-2020s.

Prices are trending upward. Tencha and matcha prices are at multi-year highs in Japan; US buyers should expect this to be reflected in wholesale pricing.

Origin verification matters more than ever. The proliferation of Chinese-made matcha with Japanese-sounding labels makes supplier transparency and third-party documentation essential when communicating quality to your customers.

US demand is the single largest driver. As the #1 export market for Japanese green tea, US buyers have significant leverage—and responsibility—in shaping demand for authentic, high-quality Japanese matcha.

USD conversion based on USD/JPY rate of approximately ¥159 as of May 28, 2026.