Matcha Boom: Why Global Demand Keeps Rising

From shaded tea fields in Kyoto and Kagoshima to cafe menus worldwide, here is what is behind the matcha wave and what it means for visitors.

Published October 26, 2026 at 11:50 AM JST | By Tokyo Paul

Quick answer: Matcha demand keeps rising because it works in lattes, desserts and ice cream, looks vivid on social media, and carries a long Japanese tea tradition. According to Japan's agriculture ministry, green tea exports roughly doubled in 2025 to about 72 billion yen, with the United States the biggest buyer. Supply is tight because matcha needs shaded tencha leaves that take years to scale.

Matcha has moved from tea houses in Kyoto to coffee-shop menus in dozens of countries, and many travelers now arrive in Japan hoping to bring some home. The surge has also made headlines in Japan, where tea farmers, makers and shops are adjusting to demand that grew faster than anyone planned. This guide explains why the boom keeps going, how matcha is actually made, what is happening in the fields, and how to shop wisely during a visit. It keeps to the numbers reported by official and news sources from 2025 and 2026, rounded where figures differ.

What makes matcha different from other green tea

Matcha is a fine powder made from a special leaf called tencha, and you drink the whole leaf rather than an infusion. Tea bushes grown for tencha are covered with shade for roughly two to three weeks before harvest, which keeps the leaves tender and boosts a mellow, savory sweetness. After picking, the leaves are steamed, dried and de-veined, then ground slowly into powder in stone mills that turn gently so heat does not dull the flavor.

Ordinary Japanese tea such as sencha is grown in full sun and steeped, then the leaves are discarded. Because matcha is consumed as a powder whisked into water or milk, the taste and color are concentrated. That is why a small scoop can flavor a whole drink, and why quality differences are easy to notice in a cup.

A short history of powdered tea in Japan

Whisked powdered tea reached Japan from China, and the monk Eisai is traditionally credited with bringing the whisking method around the late twelfth century. Tea then became tied to temples, warriors and the tea ceremony. Uji, south of Kyoto, became the best known growing area, and shaded cultivation there is documented from at least the fifteenth century according to soil studies summarized on Wikipedia.

Today other regions also make tencha, including Nishio in Aichi and Kagoshima in Kyushu. Newspaper reports from spring 2026 describe Kagoshima as Japan's largest tencha producer since 2020, making roughly 40 percent of the national total in 2024. The old Kyoto name still carries prestige, but supply now comes from several parts of the country.

Why global demand keeps rising

Several trends push in the same direction. Matcha lattes and matcha ice cream fit neatly into cafe menus, and the green color photographs well, which suits social media. Press coverage in Japan also points to interest in the tea's natural compounds such as catechins, though readers should treat health claims as general and check official nutrition guidance.

Matcha is also versatile. Pastry chefs use it in cakes, cookies and chocolate, and drink makers blend it with oat milk, fruit and sparkling water. Because the base flavor is distinct, brands can build a whole menu around it. As more shops add it, more customers try it, and demand grows in markets from North America to Europe and across Asia.

What the export numbers show

According to Japan's Ministry of Agriculture, Forestry and Fisheries, green tea exports nearly doubled in 2025 to about 72 billion yen, and the United States was the largest market. Reports based on customs statistics for the fiscal year that ended in March 2026 described volume above 13,000 tons, with powdered tea including matcha making up roughly 70 percent of the total volume.

Exports passed 10,000 tons in a calendar year for the first time in about seven decades, according to a Yomiuri Shimbun report, with Taiwan and European markets such as Germany also growing. Because figures are reported on different calendars and in different ways, the safest takeaway is simple: exports have grown sharply, and powdered tea leads the way.

Why supply is tight

Growing tencha takes time and labor. A new tea field needs about five years before it can be harvested, and many farmers are older and looking for successors, so production cannot jump overnight. Total tea output in 2025 was reported at about 75,000 tons, which is a quarter lower than twenty years earlier.

Farmers have responded by converting sencha fields to tencha, and the agriculture ministry has helped with subsidies for shading sheets and processing machines. A cooperative profiled by the Yomiuri in Shizuoka raised tencha from under a tenth of its land to about 70 percent. Conversion is a sensible response, but it also means less sencha, so tea industry groups talk about keeping the two balanced.

Prices and what shoppers may notice

Higher demand has pushed up the price of raw tencha. Newspaper reports compiled by the Global Japanese Tea Association said that average tencha prices at first-harvest auctions in spring 2026 in Kyoto and Kagoshima were roughly 1.7 to 1.8 times the previous year's level.

Shoppers may see this as higher prices, smaller package sizes or fewer items on a shelf. Some bottled green teas in Japan also rose about 10 percent in price in spring 2026, according to the Yomiuri. None of this means matcha is unavailable. It does mean that tea shops and cafes are choosing carefully what to stock, and that visitors can expect a wide range of quality and price.

Buying matcha in Japan with confidence

The most helpful habit is to read the label. A good tin lists the origin, the harvest or best-before date and the ingredients, which for plain matcha should be just green tea. Tea shops in Kyoto, Uji, Shizuoka and big department stores usually have staff who can explain which blend suits drinking straight and which suits baking or lattes.

Because the Uji name has prestige, producers and local governments have been working on protecting it from misuse, according to Japanese news reports. Buying from a known tea shop, or choosing a clearly labeled origin, is the easiest way to be sure. Store a sealed tin in a cool, dark place, and once opened, keep it airtight and use it within a few weeks for the best color and aroma.

Enjoying matcha well, at home or in a cafe

To make a simple cup, sift about two grams of powder into a bowl, add a small splash of hot but not boiling water, and whisk in a zigzag motion until a fine foam forms. For a latte, make that concentrated base first and pour in warm or cold milk. Many travelers also enjoy trying it with wagashi, the traditional Japanese sweets, whose sweetness balances the gentle bitterness.

Cafes in Japan range from tea houses with seasonal sweets to modern shops serving matcha soft serve. Trying one traditional bowl and one modern drink is a pleasant way to taste the full range. Menus change, so check shop pages or posted signs for what is available and for how the drinks are made before you order.

Want to go deeper? Tokyo Paul's book Japanese Tea and Matcha is available on Amazon.

Frequently Asked Questions

Why is matcha so popular all over the world?

Matcha is popular because it is versatile, colorful and rooted in a long tradition. It fits lattes, desserts and ice cream, photographs well, and has a distinct savory-sweet flavor that brands can build on. Interest in Japanese food culture and a wider wellness trend have also helped it spread beyond tea shops into everyday cafes.

Is there a matcha shortage in Japan?

Supply is tight rather than gone. Tencha takes years to scale and many tea farmers are aging, so production cannot rise as quickly as demand. Prices of raw tencha have risen, and shops may adjust package sizes or prices, but matcha is still widely sold. Availability varies by shop, so it helps to check with staff.

How can shoppers tell if matcha is good quality?

Look for a clear origin, a recent date and an ingredient list that says only green tea. Color is a helpful clue, since fresh matcha tends to look bright green rather than dull yellow or brown. Ask tea shop staff whether a product is meant for drinking or for baking, because blends are often made for a specific use.

Keep Exploring

More guides from Tokyo Paul: Japan's Matcha Boom: What Is Driving the Craze, Uji: Japan's Famous Tea Town and the Byodoin Phoenix Hall and Shizuoka Tea Country: Green Fields Below Mount Fuji.