TAGASHIRA CHAHO: Inside Japan's Matcha Boom — Record Exports and Skyrocketing Prices in 2026

TAGASHIRA CHAHO: A Hiroshima Tea Brand on the Front Lines of Japan's Matcha Boom

Japan's matcha industry is experiencing a historic surge — but the global boom comes with a serious warning for importers, cafés, and buyers sourcing Japanese matcha. According to a March 2026 report by Hiroshima Television (広島テレビ), Japan's powdered green tea exports hit an all-time high in 2025, driven by unprecedented international demand. At the center of this story is TAGASHIRA CHAHO (田頭茶店), a 90-year-old Hiroshima tea house that has become a beloved destination for matcha lovers — including a growing number of visitors from the United States.

Record-Breaking Export Numbers in 2025

In 2025, Japan's exports of matcha and other powdered teas reached record highs in both volume and value. This growth reflects matcha's transformation from a niche Japanese tradition into a globally sought-after ingredient. Tourists from Italy, Australia, and Mexico interviewed in Hiroshima all confirmed that matcha's popularity has exploded in their home countries, driven by growing recognition of matcha as a functional superfood with proven health benefits.

Who Is TAGASHIRA CHAHO?

Founded approximately 90 years ago in Kure City, Hiroshima, TAGASHIRA CHAHO (also known internationally under the brand name Yuicha) is one of western Japan's most respected independent tea retailers. The company operates a Japanese tea café in central Hiroshima that has become a must-visit for both domestic customers and international tourists. TAGASHIRA CHAHO has built a loyal following in the US market, known for its carefully blended, high-quality Japanese teas curated by president Yui Yoshinaga personally alongside the shop's Tea Master.

President Yui Yoshinaga on the Matcha Boom

Yui Yoshinaga (吉長邑彩), president of TAGASHIRA CHAHO, has witnessed multiple matcha trends over her career — but says the current wave is unlike anything before it in both scale and speed.

"There have been many booms before. But this time, matcha was recognized as a superfood, and it kept building slowly, slowly — and then it exploded last year." — Yui Yoshinaga, President, TAGASHIRA CHAHO

Yoshinaga notes that her café's most popular menu item, the matcha latte, is now drawing international visitors in large numbers. "Sometimes nearly every customer is Western, and you hear English being spoken at every table," she said. A Mexican visitor interviewed at the café noted that one cup of matcha in Mexico costs the same as two at TAGASHIRA CHAHO — and said the quality simply cannot be compared.

The Supply Crisis: Prices Up 3x to 10x

The same export boom driving matcha's global popularity has created acute supply pressure inside Japan. Yoshinaga described the procurement situation for the 2025 new tea season directly:

"During the new tea season (shincha), matcha and sencha procurement costs rose to about three times the previous price — and matcha became nearly impossible to obtain."

TAGASHIRA CHAHO doubled its retail prices for matcha, but even that was insufficient to cover the rise in upstream wholesale costs. Critically, the price pressure has also cascaded down to lower-grade teas:

"In particular, the cheap aki-fuyu-cha jumped tenfold last year. We couldn't supply tea to supermarkets, schools, or even the Self-Defense Forces. I think the matcha boom has become abnormal. There may come a time when Japanese people can no longer drink tea — because the world discovered its value first." — Yui Yoshinaga, TAGASHIRA CHAHO

Key Japanese tea terms for US buyers:

• Shincha (新茶) — "New tea"; the first harvest of the year, typically in May. Prized for its fresh, vibrant flavor and highest nutrient content.
• Bancha (番茶) — An everyday Japanese green tea made from larger, more mature leaves. Widely consumed domestically at affordable prices — until now.
• Aki-fuyu-cha (秋冬茶) — Autumn and winter harvest tea; typically the most affordable grade, used in budget blends and bulk institutional supply. Prices surged tenfold in 2025.

What This Means for US Matcha Importers and Café Buyers

If you are a US café owner, foodservice buyer, or matcha importer sourcing Japanese matcha in 2026, the supply dynamics described by TAGASHIRA CHAHO have direct implications for your procurement strategy:

• Expect price increases across all grades. Ceremonial, culinary, and commodity-grade matcha are all affected. Budget accordingly for the 2026 season.
• Secure supply early. The 2025 shincha season saw supply shortfalls even for established domestic Japanese buyers. Ordering ahead of peak harvest is more critical than ever.
• Verify sourcing transparency. With demand outstripping supply, the risk of low-quality substitutes or blended products entering the market increases. Work with trusted wholesale partners who provide origin documentation and quality certifications.
• Communicate price changes to your customers. Japanese tea retailers have already doubled retail prices. US importers should expect landed costs to reflect these upstream increases.

The Bigger Picture: A Tradition Under Pressure

The global matcha boom is a validation of what Japanese tea growers and retailers like TAGASHIRA CHAHO have known for generations: authentic Japanese matcha is exceptional. But as President Yoshinaga's words make clear, rapid global demand without a corresponding expansion in domestic production creates real fragility. Japan's tea cultivation area has been shrinking for years due to aging farmers and rural depopulation — a structural challenge that cannot be resolved quickly even as prices rise.

For US buyers, building long-term relationships with reliable Japanese matcha wholesalers — rather than chasing the lowest spot price — is increasingly the most resilient and sustainable procurement strategy in this new market environment.

Source:
Hiroshima Television News (広島テレビ) / Yahoo! Japan News — March 17, 2026
https://news.yahoo.co.jp/articles/6ea4640847a1bad45fb5857db5f56a582e3247c6

TAGASHIRA CHAHO Official Website
https://www.yuicha.jp/english/