The world consumes approximately 12,000 tonnes of matcha every year. Japan, the country most associated with matcha culture, produces only 4,000 to 5,000 tonnes annually.
That leaves a gap of 7,000 to 8,000 tonnes that must come from somewhere else.
For decades, this gap was quietly filled by Chinese tea producers. But in 2024 and 2025, a series of events turned this quiet arrangement into an urgent supply chain conversation.
What happened to Japanese tencha production?
Tencha is the shade-grown tea leaf that gets stone-ground into matcha powder. Japan’s premium tencha regions — particularly Uji in Kyoto — experienced consecutive heat waves in 2024 and 2025 that reduced production by approximately 40%.
The impact on pricing was immediate and severe:
- Tencha wholesale prices surged between 160% and 265%
- Auction prices reached 1.7 to 5.5 times their previous year levels
- Japanese tea buyers began actively exploring alternative sourcing regions
For food service companies, retail brands, and F&B manufacturers that depend on matcha as an ingredient, this price shock created real procurement challenges.
Where does the rest of the world’s matcha come from?
China is the world’s largest tea exporter, with green tea accounting for 86.6% of total tea exports. Three Chinese provinces have emerged as significant matcha and tencha production regions:
Guizhou (Tongren): Home to one of the world’s largest tencha production facilities, with annual capacity exceeding 2,200 tonnes. Guizhou is already the largest China-to-Japan tencha exporter, with ISO 22000 and AIB certified partner facilities.
Sichuan (Mengding Mountain): At 800 to 1,500 meters elevation, Sichuan’s expanding tencha production benefits from climate conditions similar to Japan’s premium growing regions. The province’s Zhu Ye Qing and Meng Ding Gan Lu teas are already well-regarded in specialty markets.
Yunnan: Known for its unique large-leaf cultivars grown at 1,200 to 2,000 meters elevation. While traditionally associated with Pu-erh tea, Yunnan’s terroir is being rediscovered by matcha buyers seeking distinctive flavor profiles.
How does Chinese matcha compare in quality?
This is the question most buyers ask first. The data is clearer than many expect.
In independent blind tasting assessments, Chinese matcha has been rated equal to Japanese matcha in flavor quality. The primary difference is price: Chinese matcha-grade tencha typically costs 30% to 50% less than equivalent Japanese grades.
The quality spectrum is wide in both countries. Industrial-grade matcha (used in food manufacturing) starts at $15 to $35 per kilogram FOB. Foodservice grade ranges from $35 to $80. Ceremonial grade — the highest quality — ranges from $80 to $150 per kilogram.
What about food safety and compliance?
For buyers importing into Japan, compliance with the Japan Positive List is non-negotiable. This regulatory framework covers over 800 controlled substances, and a single violation means the entire shipment is rejected.
Reputable Chinese tea exporters conduct pre-shipment testing through accredited laboratories such as SGS Japan, Intertek, and Japan Food Research Laboratories. A standard test panel covers 266 pesticides, with particular attention to four critical substances:
- Fipronil (limit: 0.002 ppm)
- Indoxacarb (limit: 0.01 ppm)
- Triazophos (limit: 0.01 ppm)
- Endosulfan (limit: 0.01 ppm)
Every compliant batch ships with a Certificate of Analysis, Pesticide Test Report, Origin Certificate, and Phytosanitary Certificate. Lot-level traceability — from specific garden to processing batch to export shipment — is standard practice among established exporters.
The market outlook
The global matcha market is valued at approximately $4 billion in 2025, with a projected compound annual growth rate of 10.6%. Demand is driven by health-conscious consumers, expanding food service applications, and growing interest in plant-based ingredients.
With Japanese domestic production unlikely to recover quickly — tencha cultivation requires years of investment in shade-growing infrastructure — the supply gap will persist through at least 2027.
For procurement professionals, the practical implication is straightforward: diversifying matcha sourcing to include qualified Chinese suppliers is no longer optional. It is a supply chain necessity.
What to look for in a Chinese matcha supplier
When evaluating Chinese matcha suppliers, buyers should verify:
- Compliance documentation: Full Japan Positive List testing capability with accredited lab reports
- Traceability: Lot-level tracking from garden to export
- Certifications: ISO 22000 or equivalent food safety management systems
- Production capacity: Ability to fulfill consistent volumes
- Quality grading: Clear differentiation between industrial, foodservice, and ceremonial grades
The matcha supply chain is evolving. The companies that adapt their sourcing strategies now will be better positioned as demand continues to grow and Japanese domestic supply remains constrained.
Terra Vista Co., Ltd. sources tea from five Chinese provinces with full Japan Positive List compliance and lot-level traceability. For sample requests and quotations, contact info@terravista.co.jp.
Frequently Asked Questions
Why is matcha so expensive in 2026?
Japanese tencha production dropped approximately 40% in 2024-2025 due to heat waves, causing wholesale prices to surge 160-265%. The global supply gap of 7,000-8,000 tonnes annually is pushing prices higher across all grades.
Can Chinese matcha match Japanese quality?
In independent blind tasting assessments, Chinese matcha has been rated equal to Japanese matcha in flavor quality. Chinese matcha typically costs 30-50% less than equivalent Japanese grades while meeting the same safety standards when properly tested.
What is the Japan Positive List for tea imports?
Japan’s Positive List covers over 800 controlled substances in agricultural imports. Tea imports must pass a 266-pesticide test panel through accredited laboratories. A single violation results in the entire shipment being rejected at customs.