HOW JAPAN'S MATCHA MARKET WORKS

Japan's Matcha market connects growers, cooperatives, Tea merchants, processors and importers. Each stage shapes what buyers can secure, how consistently a product performs and when it can be delivered. Understanding this network helps businesses plan beyond the next order.

The harvest sets the pace

In fiscal 2025, Japan exported 13,125 tonnes of green Tea, an increase of 42% from the previous fiscal year. Powdered green Tea, including Matcha, accounted for around 70% of that volume. These figures describe Japan's wider green Tea trade and help explain the scale of pressure created by international demand.

Matcha begins with tencha, Tea grown under shade and processed before milling. Newly planted Tea fields typically require around five years to mature. Existing growers can adapt some production sooner, although harvest cycles, weather, specialist tencha processing and milling capacity still determine what reaches the market.

Auctions are one part of the trade

The Kyoto Prefectural Tea Industry Chamber describes three established trading routes: negotiated agreements with producers, cooperative market auctions and transactions between Tea merchants. Direct relationships can support future quantities and quality expectations. At auction, traders inspect lots and bid. Merchants also trade with one another to secure material for specific orders or blends.

Auction prices offer a visible signal of market conditions. For a wholesale buyer, reliable supply also depends on access to suitable lots, processing lead times, and the ability to obtain comparable quality for subsequent orders. Those questions are best discussed before a business depends on regular replenishment.

Consistency is built across the supply chain

After harvest, tencha is processed, evaluated, sometimes blended, then milled and packed. Tea merchants can refine and blend different lots to achieve a desired flavour and appearance. Importers coordinate transport, documentation and the food requirements of the destination market.

For cafés, hospitality groups, grocers and distributors, consistency has a practical meaning. Flavour, colour, preparation performance, batch specifications and delivery schedules all influence the product customers experience. A successful sample becomes a dependable Matcha programme when those qualities can be maintained as demand develops.

Responsible sourcing is a commercial practice

In May 2026, the International Matcha Association and 38 Japanese Tea businesses issued a joint statement supporting fair transactions, a credible relationship between quality and price, and clearer commercial terms across the industry. Their concerns reflect growing pressure on cultivation, processing and distribution.

For buyers, that translates into realistic forecasts, transparent origin claims, agreed quality requirements, fair payment terms and advance planning for volume. For producers and merchants, it means communicating capacity and timing clearly. Long-term relationships become valuable through the specific commitments each side can make and sustain.

The questions for your next order

Who grows the tencha, and how is it secured? Which trading route supplies the product? How are taste and batch consistency managed? What volumes are available or planned? What lead times apply as demand increases? Who coordinates milling, documentation, importing and replenishment?

These answers turn a kilogram quote into a better supply decision. They reveal the knowledge, capacity and relationships behind each finished Matcha.

FURTHER READING: Japan's FY2025 green Tea export figures; Reuters on cultivation and demand; Kyoto Tea trading routes; International Matcha Association's 2026 joint statement.