Japan’s tea industry continues to experience a striking contrast: prices are increasing, exports are booming, and Japanese tea is enjoying unprecedented popularity overseas, while domestic consumption faces growing challenges. This month’s developments highlight both the strength of the industry and the questions surrounding its future.
According to Japan’s Ministry of Agriculture, Forestry and Fisheries, 2026 first-flush tea production statistics released on August 18th show that Shizuoka Prefecture reclaimed the top position in Japan for first-flush tea production. Its crude tea production, referring to tea leaves that have been picked, steamed, and dried, increased 32% year-on-year to 10,700 tons.Kagoshima, which ranked first in 2025, also saw production rise by 14% to 9,610 tons. Favorable weather conditions helped Shizuoka overtake Kagoshima for the first time in two years. Production also increased in other major tea-producing prefectures, including Mie, Kyoto, and Saitama, where combined first-flush crude tea production rose 21% to 24,100 tons. At the same time, however, the total harvesting area declined 1% to 22,000 hectares. The figures point to a productive season, but they also underline the broader shift toward higher output from an increasingly limited cultivation area.
That strong production comes at a time when demand for Japanese tea abroad is reaching new heights. Agricultural, forestry, fishery, and food exports rose 10.9% year-on-year to ¥897.7 billion in the first half of 2026, setting a new record. Matcha and green tea were among the key drivers, particularly in Europe and the United States, where demand has been fueled by health-conscious consumers and the growing use of matcha in beverages and confectionery. Exports to the United States alone increased 15.3% to ¥162.6 billion, supported by strong sales of yellowtail and green tea. The impact of the Trump administration’s tariff policies was limited, while a total of 23 product categories reached record-high export values. Green tea exports increased by ¥22 billion to ¥48.3 billion. Yet this international success is also bringing a new challenge: protecting the reputation and authenticity of Japanese tea.
In response to the growing problem of overseas products misusing Japanese tea names, the Ministry of Agriculture, Forestry and Fisheries registered Japanese tea under the Geographical Indication (GI) Protection System in July. The system protects regional agricultural and food brands, with the Japan Tea Central Association having submitted the application. Products meeting the association’s standards and receiving approval will be able to use the GI mark, while the ministry plans to take action against unauthorized use. The issue has become increasingly pressing as counterfeit products appear overseas, including products made in China and marketed as “Uji matcha.” If left unchecked, such practices could weaken consumer trust and ultimately threaten the market for genuine Japanese products. While Japan works to protect its tea overseas, however, another challenge is unfolding much closer to home: getting younger generations in Japan to drink more of it.
Japanese tea is having its moment on the global stage, but at home, the habit of brewing tea is gradually disappearing. To help reverse this trend, the Mainichi Shimbun, one of Japan’s major newspapers, has published a ser aimed at younger readers. The articles introduce the basics of Japanese tea, explain how to choose sencha, and offer guidance on how to brew it properly at home. The initiative seeks to make Japanese tea more approachable and help a younger generation rediscover the everyday pleasure of drinking tea. This effort to reconnect consumers with tea comes as rising international demand is already having a significant impact on Japan’s domestic tea market.
The closing event for this year’s Uji tea market in Kyoto highlighted just how dramatic that impact has become. The market’s total transaction value reached ¥12.94 billion, far exceeding last year’s record of ¥9.629 billion, amid the continuing global matcha boom. The season ran from April 24 to July 31, with first-flush tea accounting for most transactions. Tencha, the raw material used to make matcha, reached 595 tons – including both hand-picked and machine-harvested leaves – the highest volume since the market opened in 1974. Machine-harvested tencha alone generated ¥10.101 billion, with an average price of ¥17,250 per kilogram, the highest since records began in 1996. As more tea fields and production capacity are devoted to tencha, production of other tea kinds such as gyokuro, sencha, kabusecha, and bancha has declined. Their average prices consequently rose by around 30% to more than double the previous year’s levels. Naoharu Yano, chairman of Kyoto Midorikai, warned that continued price increases could eventually discourage consumers from buying and drinking tea – a reminder that the global matcha boom may come with a cost for Japan’s traditional tea culture.
Against this backdrop of booming exports, rising prices, and declining domestic habits, the role of tea as a symbol of Japanese culture and peace remains as powerful as ever. On August 23rd, the Nagasaki Peace Memorial Tea Ceremony was held at the Nagasaki Atomic Bomb Museum to honor the victims of the atomic bombing. A hanging scroll bearing the inscription “One Bowl of Peace,” written by former Urasenke grand master Sen Genshitsu, was displayed alongside tea bowls decorated with a thousand paper cranes, symbols of peace and hope. Mayor Shiro Suzuki and other attendees paid tribute to the victims, while tea prepared by Ryosaku Hirota, head of the Nagasaki Youth Division, was offered in remembrance of those who lost their lives.
Sen Genshitsu, who died in 2025 at the age of 102, had served as a kamikaze pilot during World War II before dedicating his later life to promoting peace through the Japanese tea ceremony. His story offers a powerful reminder that Japanese tea is more than an agricultural product or an increasingly popular export: it can also serve as a vehicle for cultural connection, remembrance, and peace.
*The article is based on Japanese media articles:
- Agricultural exports rose 10.9% to 897.7 billion yen in the first half of the year, setting a new record, driven by strong sales of matcha and yellowtail, Nikkei Shimbun 2026.08.04
- Shizuoka Prefecture regained top spot in 2026 first-flush tea production, with a 32% increase in production, Nikkei Shimbun 2026.08.18
- Let’s try making Japanese tea, Mainichi Shimbun 2026.08.19
- Total Transaction Value of Uji Tea Reaches Record High of 12.94 Billion Yen, Yomiuri Shimbun 2026.08.21
- Peace Memorial Tea Ceremony held at Nagasaki Atomic Bomb Museum, Yomiuri Shimbun 2026.08.23