Japan faces supply pressure as global matcha demand surges

Global demand for matcha is surging, creating significant pressure on Japan's traditional production systems. The international matcha market is estimated to be worth over $4.2 billion, with a projected growth of 53% by 2029.

Japanese green tea exports in 2025 exceeded 20,000 tons for the first time, representing a 250% increase compared to 2014. This export value reached approximately 36.4 billion yen. The United States remains a primary consumer, accounting for over 30% of these exports.

Despite increased production, the Japanese market faces challenges. While tea cultivation has nearly tripled in the last decade, reaching over 5,000 tons, the industry struggles with climate change and intense global competition. This high demand for matcha as a global lifestyle product is impacting the availability of traditional leaf tea used for daily consumption within Japan.