Japan looks to cash in on matcha boom to boost green tea exports

The government is considering measures to prompt Japanese green tea farmers to shift more production to "tencha" leaves that can be ground into matcha powder, from "sencha," commonly consumed in Japan, to boost tea exports, according to farm ministry sources, Kyodo reports. 

Japan
Photo: Kyodo

It seeks to capitalize on the booming market abroad for matcha, often used in desserts and drinks, to make up for falling green tea consumption at home.

Tencha is made by steaming and drying tea leaves grown in the shade, which are then processed into a fine powder when producing matcha. Sencha, by contrast, is made by steaming, kneading and drying sun-grown leaves.

The Ministry of Agriculture, Forestry and Fisheries plans to earmark subsidies to help tea farmers prepare for tencha production in its fiscal 2025 budget.

Japan's green tea exports had surged around nine-fold to a record 29.2 billion yen ($185 million) over the 15 years through 2023, lifted mainly by matcha on the back of the increased popularity for Japanese food among health-conscious consumers in Europe and the United States, the ministry said.

Japan's tea production, on the other hand, dropped by over 20 percent during the same period, reflecting the aging farm population and a nearly 40 percent drop in the average annual spending on green tea per household, according to government data.

The shift to tencha will be stipulated in the farm ministry's basic policy for tea production, set to be revised in spring in its first review in five years.

"Production of high-value-added tea is important. We will advance our discussions so that all parties concerned can have a broad common understanding," a ministry official said, as the members of a ministry panel discuss the basic policy.

The government is stepping up efforts to provide matcha-related information through social media. Its tea promotion account on Instagram, run by the Japan Food Product Overseas Promotion Center, has gained more than 30,000 followers.

Earlier it was reported that Japan's trade deficit shrank 44% in 2024 on record exports. 

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