Against the backdrop of a global matcha boom, tencha production and tea exports are expanding, while domestic tea supplies are tightening and prices are surging, raising concerns about the future of Japan’s tea culture.
The global matcha boom has driven an expansion of tencha production in tea-producing regions such as Kyoto. Although tea exports have increased, supplies for the domestic market are falling short, and prices for everyday teas, including sencha and hojicha, are surging.
According to a Kyoto tea wholesaler, the matcha boom has brought a surge of foreign tourists to tea shops, particularly those in Uji, while calls and emails from domestic and overseas businesses seeking to buy at high prices have increased. At the same time, production of teas other than tencha has declined. As a result, it has been noted that prices for all tea have surged since 2025.
In particular, the price of hojicha raw materials has quadrupled over the past 2 years. In the Kansai region, some believe prices could eventually approach ¥1,000 per 100g, up from the previous level of roughly ¥250–300.
As Chinese-produced matcha gains ground and efforts are made to address imitation products overseas, there are calls for Japan to compete on the quality of its tea. Alongside the policy of expanding green tea exports, attention is now focused on future trends in domestic consumption and the effectiveness of efforts to protect Japanese tea brands.