Kagoshima Ichibancha Prices Double in 2026: Japan Matcha Supply Update

Kagoshima First-Flush Tea Prices More Than Double in 2026, Reaching a 50-Year High

If you source Japanese matcha wholesale for your café or food business, the latest data from Japan's tea market is essential reading. According to a report published by Minami Nippon Shimbun on June 4, 2026, the average trading price of ichibancha (一番茶, first-flush tea — the season's very first and most prized harvest) at the Kagoshima Prefectural Tea Market has more than doubled compared to 2025, reaching the highest level recorded since 1975. This is the direct result of surging global demand for matcha and its raw material, tencha.

The Numbers: A Record-Breaking Season for Kagoshima Tea

Data compiled by the JA Kagoshima Economic Federation Tea Division reveals the scale of the price surge across all tea categories in the 2026 first-flush season.

Honcha (本茶) — the primary category, covering sencha (steamed leaf green tea for brewing) and related grades: average price ¥5,228/kg (approx. USD 34), up from ¥2,564 (approx. USD 17) in 2025 — an increase of more than 106%. This is the highest price since tracking began in 1975.

Tencha (てん茶) — shade-grown leaf that is stone-ground to produce matcha powder: average price ¥13,910/kg (approx. USD 90), up 2.3× year-over-year.

Organic teas: standard grades around ¥5,000/kg (approx. USD 32); premium grades such as organic gyokuro traded above ¥8,000/kg (approx. USD 52). Average unit price ¥8,047/kg (approx. USD 52), up 69.4%.

Bancha (番茶) — lower-grade tea used primarily in bottled drinks: ¥2,689/kg (approx. USD 17), up 2.9× from the prior year.

Demono (出物) — stems and by-products used for hojicha (roasted tea): ¥2,185/kg (approx. USD 14), up 2.2× from the prior year.

Total transaction volume for the 2026 first-flush season was 3,821 metric tons, up 12.5% from 2025. Trading began on April 6 — three days earlier than the previous year — due to favorable growing conditions, and concluded at the end of May.

Why Are Prices Surging? The Forces Behind Japan's Matcha Supply Shift

The price surge is not a single-season anomaly — it reflects a fundamental structural change in Japan's tea industry driven by international demand.

Global matcha demand is pulling up the entire market. Surging export demand for tencha and organic teas has pushed prices well beyond what domestic consumption alone could produce. As farmers have converted sencha fields to tencha cultivation to meet this demand, the supply of traditional leaf teas has tightened — lifting prices across all categories, not just matcha-related grades.

Years of low prices reduced the number of active tea farmers. Tashiro Yosuke, senior research official at the JA Kagoshima Economic Federation Tea Division, described the current situation as "far exceeding expectations." He noted that farm exits during years of low profitability have reduced total production capacity, meaning the industry cannot quickly scale output to meet new demand — a structural constraint that is amplifying the current price surge.

The Tencha-to-Sencha Conversion Effect

One of the more significant structural shifts underway is the large-scale conversion of conventional sencha fields into tencha cultivation. While this makes economic sense for individual farmers — tencha now commands ¥13,910/kg (approx. USD 90) on average — it reduces the overall supply of sencha, which is the foundation of Japan's domestic tea culture. Okamura Ken, president of the Kagoshima Prefectural Tea Merchants Cooperative, noted that "the value of Kagoshima tea increasing is a good thing," but added that the sudden reversal in supply and demand has created confusion throughout the supply chain.

What This Means for Importers and Wholesale Buyers

For cafés and importers purchasing wholesale matcha from Japan, this market shift carries direct implications.

Matcha raw material costs are at a multi-decade high. Tencha at ¥13,910/kg (approx. USD 90) means that finished matcha powder pricing will remain elevated throughout 2026 and into the foreseeable future.

Organic and premium grades are in especially tight supply. The high profitability of organic and tencha categories is attracting production, but supply cannot respond immediately — expect continued tightness in certified organic Japanese matcha.

Price increases at retail and foodservice are unavoidable. Okamura noted that items that previously retailed at ¥500 per 100g are now difficult to price profitably even at ¥1,000 per 100g — a dynamic that will flow through to wholesale buyers over time.

Early-season ordering is increasingly important. With limited supply and strong global demand, buyers who establish supply relationships before peak demand windows will have a significant advantage in securing consistent quality and pricing.

A Positive Cycle — If the Industry Can Manage It

Tashiro of the JA Kagoshima Economic Federation expressed cautious optimism: "The efforts of producers who continued to improve efficiency are now bearing fruit. If profits are reinvested into field management and quality improvement, it could create a positive cycle." However, officials from the Kyushu Agricultural Administration Bureau also cautioned against over-reliance on export demand, pointing to the rise of Chinese and other non-Japanese matcha as a long-term competitive risk. For Japanese matcha wholesale suppliers and their international buyers, the window of current market conditions underscores the value of building stable, long-term sourcing relationships now.