Uji City Tea Room Raises Prices 50% as Global Matcha Boom Impacts Japan's Tea Industry

In a significant development reflecting the global matcha market's unprecedented surge, Uji City in Kyoto Prefecture has announced a 50% price increase for its municipal tea room services, effective April 2026. The decision by one of Japan's most prestigious tea-producing regions signals how international demand is reshaping pricing structures throughout the domestic tea industry.

Understanding Chashitsu (Tea Rooms)

A chashitsu, or traditional Japanese tea room, is a specially designed space for conducting tea ceremony (chanoyu or sado). These rooms follow specific architectural principles emphasizing simplicity, natural materials, and harmony. Unlike Western tea rooms or cafés, chashitsu are formal spaces where guests experience authentic Japanese tea ceremony, including the ritualized preparation and serving of matcha according to centuries-old traditions. Taihoan, the municipal facility in Uji, serves as both a cultural preservation site and an educational venue where visitors can learn proper tea ceremony etiquette and appreciate matcha in its traditional context.

Price Adjustments at Taihoan

The city-operated Taihoan tea room, located near the UNESCO World Heritage site Byodoin Temple, will implement the following price changes:

• Usucha (thin tea) service: ¥1,000 → ¥1,500 (50% increase)
• Otemae hands-on tea ceremony experience: ¥2,400 → ¥3,600 (50% increase)

The facility welcomed over 20,000 visitors in fiscal year 2025, with approximately 80% coming from overseas, representing a critical touchpoint between international tourists and authentic Japanese tea culture.

Market Forces Behind the Decision

According to Takayuki Sugimoto, Department Head of Uji City's Industry and Tourism division, the price adjustment directly reflects current market conditions. "Uji tea has gained worldwide recognition in recent years, and market prices have doubled or tripled," Sugimoto explained. "We aim to maintain service quality standards and enhance our hospitality offerings while adjusting to new market realities."

The underlying cause is the dramatic surge in tencha prices. According to Japan Agricultural Cooperatives (JA), auction prices for tencha have increased approximately 400% over the past five years. Tencha refers to the shade-grown tea leaves that serve as the raw material for matcha production. Unlike regular green tea leaves, tencha undergoes a labor-intensive cultivation process including weeks of shade coverage before harvest, followed by steaming, drying, and stone-grinding into matcha powder.

Ripple Effects Throughout Uji's Tea Industry

The pricing pressure extends beyond municipal facilities. At Tobien, a specialty Uji tea shop opened in June 2025 by Swiss tea practitioner Tobias Bär, procurement costs continue climbing despite efforts to maintain accessible retail pricing.

"I want many people to enjoy delicious tea, so even though prices are rising somewhat, I'm holding back on major increases," Bär noted during an interview. The challenge reflects a broader dilemma facing tea retailers: balancing rising wholesale costs against customer accessibility.

During a recent visit to the shop, a spontaneous business meeting occurred when a coffee shop owner from Barbados walked in seeking to incorporate matcha into Caribbean café offerings. "Matcha is becoming very popular worldwide," the visitor explained. "We're looking for ways to use it in our coffee shop. The price is high, but quality products don't come cheap."

Implications for International Buyers

The 50% price increase at Uji's municipal tea room serves as a tangible indicator of broader market dynamics affecting Japanese tea supply chains. For US-based café operators, restaurant owners, and matcha importers, several key takeaways emerge:

Market Pricing Trends: The decision by a government-operated facility to implement such substantial increases suggests pricing pressures are structural rather than temporary. Municipal operations typically move conservatively on pricing, making this adjustment particularly significant.

Supply-Demand Imbalance: With tencha prices quadrupling in five years while production capacity remains constrained by traditional cultivation methods and limited suitable growing regions, supply-demand fundamentals point toward continued upward pressure.

Quality Sourcing Considerations: As pricing diverges across quality tiers, establishing relationships with reliable suppliers from established production regions like Uji becomes increasingly valuable for maintaining consistent product quality and supply security.

The Uji tea room price adjustment, while a local development, reflects the global matcha boom's tangible impact on Japan's traditional tea industry infrastructure. As international demand continues expanding, similar pricing adjustments are likely across the supply chain from cultivation through retail distribution.

Source: Yahoo! News Japan / Yomiuri TV, February 13, 2026
https://news.yahoo.co.jp/articles/0eaad7a781bb17061c594b89703f21b0bd6f5d75