Japan Matcha Market Updates

Rising Japanese Tea Costs Now Hitting Bottled Green Tea: What It Means for U.S. Matcha Buyers

Jan 09 2026

Japan's domestic green tea market is entering a new phase where rising leaf prices are finally reaching bottled green tea beverages, not just premium matcha powders.

Article context and key points

A recent TV report in Japan highlights that the ongoing global "matcha boom" has contributed to a sharp rise in Japanese tea leaf prices, affecting both foodservice and retail sectors.
In a conveyor-belt sushi chain in Yokohama, the purchase price of tea has risen to about 1.5 times compared with before, forcing operators to buy a full year's supply at once to control cost increases.
Major PET-bottled green tea brands such as "Oi Ocha" and "Ayataka" are scheduled to raise retail prices by around 21 yen per bottle from March, directly impacting everyday consumers in Japan.

Why bottled green tea matters for U.S. cafés

In Japan, PET-bottled green tea is a mass-market staple, so price hikes signal that raw tea leaf costs are now structurally higher, not just a temporary spike in specialty matcha.
For U.S. cafés and restaurants importing matcha, this is an early indicator that upstream Japanese tea supply (sencha, tencha, matcha) is under broad cost pressure, which can eventually influence export prices and availability.
As Japanese beverage companies accept higher ingredient costs and pass them into PET beverages, it becomes easier for Japanese suppliers to justify sustainable pricing for high-grade matcha exported to overseas foodservice customers.

Background: Japanese terms and tea types

The TV report mainly discusses "ocha" (tea in general), "sencha" (standard steamed green tea used in many bottled drinks), and "matcha," which is stone‑milled powdered green tea made from shaded leaves known as "tencha."
"Sencha" is typically infused in water and then bottled, while "matcha" is consumed as a suspension, so both categories compete for the same farmland, fertilizer, and labor resources in major producing regions such as Kagoshima and Shizuoka.
When leaf prices in these regions surge—Kagoshima's wholesale tea leaf prices reportedly rose to nearly six times the previous year for some lots in October–November—it stresses the entire Japanese green tea supply chain.

Implications for U.S. buyers of Japanese matcha

Rising domestic costs mean Japanese producers must prioritize stable, higher‑value channels, including exports of premium matcha for overseas cafés and restaurants, rather than low‑margin commodity products.
U.S. buyers may see:
- Gradual wholesale price adjustments for authentic Japanese matcha.
- Longer‑term contracts and pre‑booking becoming more important to lock in quantity and price.
- Stronger differentiation between genuine Japanese matcha and "matcha‑style" powders made from non‑Japanese green tea.
For menu planning, operators in the U.S. should anticipate that Japan‑sourced matcha and green tea products are unlikely to return to past "deflationary" pricing, and should integrate tea more as a premium, story‑driven ingredient.

Practical recommendations for cafés and restaurants

Review current matcha usage and margins:
- Identify best‑selling matcha drinks and desserts that can support a small price increase or size adjustment.
- Consider offering "single‑origin" or "farm‑specific" Japanese matcha to justify premium positioning.
Communicate value to customers:
- Explain that Japanese tea farmers face rising production costs and that using authentic Japanese matcha supports sustainable agriculture and quality.
- Highlight differences between Japanese matcha and lower‑cost alternatives in terms of flavor, color, and origin.
Strengthen supply relationships:
- Discuss annual or semi‑annual purchasing plans with suppliers to secure consistent quality and volume.
- Explore stocking both a daily‑use matcha (for lattes, frappes) and a higher‑grade ceremonial matcha (for straight servings and specialty items) to balance cost and quality.