Matcha global demand transforms Japanese tea production

The global surge in matcha demand is reshaping Japan's tea industry, placing pressure on traditional tea production. Once a niche product primarily used in Japanese tea ceremonies, matcha has evolved into a global phenomenon driven by international demand from cafes, bakeries, and the food industry. The market is estimated by the Business Research Company to be worth over $4.2 billion, with a projected growth of 53% by 2029.

This shift has significantly altered agricultural priorities. Production of tencha—the shaded leaves used to make matcha—has nearly tripled over the last decade, exceeding 5,000 tons. According to the Ministry of Agriculture, Forestry and Fisheries, Japanese tea exports reached a record of over 10,000 tons in 2025, a 250% increase compared to 2014.

Farmers in regions such as Kyoto, Shizuoka, and Aichi face difficult decisions regarding land use. While matcha is more profitable, it requires specialized techniques, longer processing times, and different field management compared to traditional varieties like sencha. Converting land to tencha production is a slow process that cannot be decided within a single season. The United States currently leads this international demand, with high consumption seen in urban centers from Los Angeles to New York.