Kagoshima’s First 2026 Tea Auction: Sencha Prices Double as Matcha Boom Reshapes Japan’s Tea Fields

Kagoshima's first 2026 tea auction has opened with an exceptional jump in prices for sencha, not matcha, signaling a tightening supply situation that overseas buyers should watch closely.

Key points for U.S. café buyers

• Kagoshima, now Japan's largest tea-producing prefecture by both output value and aracha (unrefined tea) volume, held its first tea auction of 2026 this week.
• At this initial auction, the average price for sencha reached 3,258 yen per kilogram, roughly double the previous year's level, while the top price rose by more than 5,000 yen to 25,288 yen per kilogram.
• This sharp increase reflects a "seller's market" for sencha: more producers chose to ship sencha to the auction in anticipation of high prices, and total sales value jumped by almost an order of magnitude compared with the prior year.

Why sencha prices are rising

• In recent years, domestic and international demand for matcha has surged, encouraging Kagoshima growers to expand production of tencha, the shaded leaf material used to make matcha powder.
• As more acreage and resources shift toward tencha, output of sencha has declined, reducing available volume for conventional green tea and tightening supply at auctions like this first 2026 sale.
• The current situation is described locally as "unusual from the very start of the year," with Kagoshima's tea industry leaders aiming to maintain Japan‑leading output while also improving distribution and market stability.

Terms: Kagoshima tea, sencha, tencha

• "Kagoshima tea" generally refers to green tea produced in Kagoshima Prefecture, including sencha, tencha, and other styles; the region has become a major volume and export base for Japanese tea.
• "Sencha" is standard steamed green tea made from unshaded leaves, commonly used for hot green tea in Japan and increasingly in bottled RTD products; higher leaf prices can feed into beverage and foodservice costs.
• "Tencha" is shaded tea leaf that is steamed and dried without rolling; when ground, it becomes matcha, the powdered green tea used in drinks, desserts, and food applications.

Implications for matcha and U.S. imports

• While the headline from this Kagoshima auction is about sencha, not matcha, the underlying driver is the global and domestic matcha boom that is pulling acreage and labor toward tencha production and away from sencha.
• For U.S. cafés importing Japanese matcha, this divergence suggests that:
  • Matcha supply may continue to expand in regions like Kagoshima, but raw‑material competition and higher costs in other green tea categories could influence overall tea pricing.
  • Operators using both matcha and sencha (for example, matcha lattes alongside hot green tea or blended iced drinks) should plan for possible cost increases on sencha‑based SKUs and consider revisiting menu pricing and supplier contracts over 2026.

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  Kagoshima's First 2026 Tea Auction: Sencha Prices Double as Matcha Boom Reshapes Japan's Tea Fields
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  Kagoshima, Japan's top tea region, opened its 2026 auction with sencha prices roughly twice last year's level as the global matcha boom shifts production toward tencha and tightens green tea supply.

Original Japanese news article (in Japanese):
異例の状況！かごしま茶初取引で単価が倍に！ – KKB鹿児島放送 / Yahoo!ニュース
https://news.yahoo.co.jp/articles/0ad59d0612f2ebfa3dec97bcabacd2dae27c5be8