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Japan's matcha tradition faces competition from China's growing market

Japan's matcha exports hit 12,600 tonnes in 2025,but supply can't keep up with global demand. Meanwhile, China surged as world's top matcha producer, holding 70% market share. The rivalry between these tea giants is heating up.

BRIC Team
BRIC Team
Aug 16, 2026 · 2 min read · 6 views
Japan's matcha tradition faces competition from China's growing market

Key Takeaways

  • Japan faces matcha supply shortage amid rising global demand
  • China now dominates matcha production, accounting for 70% of supply
  • Local farmers in China see significant income boosts from matcha cultivation
  • Japan's matcha remains culturally significant despite competition from China

Matcha's booming. Global interest in powdered green tea is skyrocketing. Japan, long celebrated for its matcha,now faces stiff competition from China's expanding production. In 2025,Japan's green tea exports,including matcha, hit over 12,600 tonnes, a 43% jump from previous year. But supply issues remain. Can Japan keep up with soaring demand?

In Uji,famous for tea,people line up outside Horii Shichimeien for high-end matcha. Prices there have rocketed to nearly $170 per tin, three to five times higher than five years ago. The shop's president admits Japan’s tea sector is buzzing again,but demand still outstrips supply.

Matcha production is complex. It starts with shade-grown tencha leaves, nurtured for 20-40 days,then harvested. They're steamed to stop oxidation,dried, stems removed,and ground into fine powder using traditional stone mills. These mills produce just 40 grams per hour and need breaks to maintain quality.

Japan has tripled its matcha output in a decade, reaching over 6,200 tonnes by 2025. Still,it's not enough for global demand. Meanwhile, China dominates, producing 70% of world's matcha last year with over 12,000 tonnes.

In Tongren, Guizhou province,farmers are cashing in on the matcha boom . Once struggling, area now boasts a strong matcha supply chain . Yang Xiuyuan, local farmer, says his income soared after switching to tea . Over 100,000 Guizhou farmers now thrive in this booming industry.

Gui Tea,China's largest matcha producer,sold 2,500 tonnes in 2025,exporting much to Japan. Chen Xiaoming, deputy general manager,says while Japan's matcha is quality, China's edge is in producing beverage-grade matcha efficiently, increasingly popular internationally.

Guizhou's government is heavily investing in matcha, aiming for a $1.5 billion industry by 2030. They're pushing tech and better production methods to meet global demand.

Despite China's rise, Japan's matcha holds cultural weight. Uji,birthplace of tea cultivation 800 years ago,saw a tourism boom with 6.2 million visitors in 2025 seeking authentic matcha experiences. This renewed interest gives local producers hope, reviving old traditions .

As the matcha race intensifies,Japan and China take different roads. Japan sticks to quality and tradition,while China leverages mass production. This rivalry might just redefine the matcha market...

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