Japan’s tea-growing regions are riding the global matcha wave, shifting more of their production toward powdered teas to capture growing overseas demand—and hopefully breathe new life into a long-stagnant industry. But the opportunity comes with a challenge: China is moving fast in the global green tea market, and competition is only set to grow.
Shizuoka’s Global Brand Push
In April, Shizuoka Prefecture unveiled a new unified global brand: JAPAN TEA SHIZUOKA. At the announcement, Governor Yasutomo Suzuki said, “We want to once again promote the value of Shizuoka tea, which has long led Japan’s tea industry, both in Japan and abroad.”
The initiative aims to reframe Shizuoka tea for international audiences and establish it as a world-class Japanese brand. Leading the creative effort is Kashiwa Sato, the designer behind the celebrated Imabari towels branding from Ehime Prefecture, who has been brought on as producer.
The timing reflects a broader surge in global appetite for matcha, which has found its way into ice creams, sweets, and drinks around the world. Japan’s green tea exports topped ¥72 billion (about $456 million) in 2025, more than seven times the level of a decade ago, with powdered teas like matcha accounting for over 80% of that total.
Snow-capped Mount Fuji rises beyond the fresh green tea fields. (©Sankei by Kenji Suzuki)
Kagoshima Gains Ground
A region that has been especially successful in meeting rising demand is Kagoshima Prefecture. While tea farmers across Japan struggle with an aging workforce and labor shortages, Kagoshima benefits from its wide, flat terrain, which is ideal for large-scale mechanized farming. In 2024, the prefecture surpassed Shizuoka Prefecture in aracha production, the crude tea made from freshly harvested leaves.
The same trend can be seen in matcha production. Kagoshima now produces about 40% of Japan’s domestic tencha, the leaf used to make matcha, making it the country’s leading producer by a significant margin. Kyoto accounts for roughly 20%, while Shizuoka produces about 11%.
Officials in Shizuoka say the prefecture’s decline relative to Kagoshima is partly due to a slower shift toward tencha production. “We are completely unable to keep up with growing demand,” a representative from the prefectural government’s tea promotion division said.
In response, Shizuoka is working to transition part of its tea industry from sencha to tencha production. Sencha, Japan’s most common green tea, is made from tea leaves grown in full sunlight, then steamed, rolled, and dried before being brewed in hot water. Tencha, by contrast, is shade-grown and processed without rolling, producing leaves rich in umami that are later ground into matcha.
Shift to Tencha Production
To accelerate the shift, local governments, including Shizuoka Prefecture and Shizuoka City, are introducing subsidies and support programs while also stepping up overseas marketing efforts. Mayor Takashi Namba described the effort as “the last chance to secure the future of the tea industry.”
On the ground, change is already underway. The Ashikubo tea works cooperative in Aoi Ward, an area long regarded as the birthplace of Shizuoka tea, invested ¥150 million ($950,000) to install a tencha production line at its factory, drawing on support from national and local subsidies.
The line began operating last autumn, and the cooperative plans to run it year-round in 2026. Nearby fields that once grew sencha leaves are steadily being converted, with farmers draping tea plants in shading sheets, a technique that cuts bitterness and brings out umami, making the leaves suitable for tencha.
For some, the shift is already paying off. A producer in his 70s, working the fields in late April, reflected on the turnaround: “For about 20 years, tea prices kept falling. But now I can sell it for roughly three times what it was worth two or three years ago.”
Chinese Competition
According to the International Tea Committee, China produced around 2.06 million tons of green tea in 2024, roughly 28 times Japan’s output, supplying enormous volumes of green tea and matcha to food manufacturers around the world.
Yoriyuki Nakamura, a specially appointed professor at the University of Shizuoka and director of its Tea Science Center, analyzed about 20 products marketed as Chinese matcha last year.
“Quality varies widely, but some are now comparable to Japanese products,” he said. “Japan cannot compete on volume in the global market, so it should focus on quality and other forms of added value.”
Shizuoka City seems to have taken that advice to heart. In its overseas promotion, Shizuoka City will avoid focusing too heavily on matcha and will also promote sencha, where its high quality and traditional craftsmanship can be better showcased.
“Competition in matcha is likely to intensify,” said a representative from the city’s agricultural policy division. “Sencha is difficult to produce, and overseas products cannot easily catch up in terms of quality.”
RELATED:
(Read the article in Japanese.)
Author: Hiromi Aoyama, The Sankei Shimbun
Continue Reading