Where is matcha culture headed? A Japanese tradition spreading to China and the world

While matcha is loved around the world and is popular in lattes and sweets, in its homeland of Japan, tea manufacturers are going out of business one after another. Japan's production is unable to keep up with growing global demand. With matcha production beginning in China, the bearers of the tradition are at a crossroads.

Where is matcha culture headed now?

We will explore the economics and history behind this, and what we can do to connect it to the future.

Is matcha production moving to China? Changes happening in Japan and around the world

I was surprised to see the news that " China becomes the world's largest supplier of matcha. Production expands in inland areas due to popularity of Japanese tea " ( Kyodo News ). I often hear about Japanese matcha's popularity overseas, but what is happening in the world right now?

According to Kyodo News, Tongren City, Guizhou Province, a tea-producing region in inland China, is establishing a mass production system to make matcha a regional brand . They invited experts from Japan to introduce their technology, built a large-scale factory, and have succeeded in mass production . With matcha lattes becoming a part of everyday life, they are also promoting sales and exports to Europe and the US, where a matcha boom is taking place.

Chinese tea culture

Matcha is now popular all over the world, but how did it come about?

Its origins can be traced back to China, the birthplace of tea. Tea was introduced to Japan during the Nara and Heian periods (710-1192). At that time, envoys to Tang China and Buddhist monks who studied there were sent to learn about China's advanced systems and culture, and it is said that they brought tea back to Japan.

After that, tea developed uniquely within the Japanese climate and aesthetic sense. It became linked to hospitality and spirituality, and eventually the uniquely Japanese culture of "matcha" was formed .

Therefore, the opening of this matcha factory in China can be seen as an event in which Japan's matcha culture, which has been nurtured over many years, has returned to China, the origin of tea culture.

From the perspective of matcha, it may seem as if Japanese culture has crossed the ocean, but from the broader perspective of tea culture, it could also be said to be a "circulation back to its origins."

The answer to the question, "What exactly constitutes Japanese culture?" varies greatly depending on your starting point and perspective, so I will not define it in this article. However, I would like to use this matcha news as an opportunity to think a little about the changes currently occurring in Japan and around the world .

Despite the matcha boom, the number of tea manufacturing businesses in Japan going out of business continues to increase.

Matcha lattes have become a standard menu item at cafes, and matcha-flavored sweets are available in supermarkets and convenience stores. As the news mentioned above shows, global demand for matcha is on the rise, and even high-priced matcha is popular. Matcha has become a part of everyday life, and a matcha boom is occurring around the world .

However, at the same time, in Japan, the number of tea producers who grow, manufacture, and sell tea leaves going bankrupt or going out of business is increasing at a record high ( Teikoku Databank , as of 2025) .

In recent years, the situation surrounding the Japanese tea industry has become polarized. Due to the matcha boom, tea manufacturers who do everything from growing tea leaves to processing in-house have seen a significant increase in sales.

On the other hand, businesses that purchase tea leaves from farmers have seen a drop in revenue of about 18% and a loss of about 30% due to rising purchasing costs. The deterioration in business performance is particularly noticeable among tea manufacturers that do not have many sales channels for overseas exports or inbound tourism .

Teikoku Databank also points out that raising the price of leaf tea for the domestic market is difficult due to the trend of young people turning away from Japanese tea and sluggish demand for Buddhist ceremonies and funerals. One of the reasons for the increasing number of tea manufacturers going out of business is that domestic demand is not keeping up with demand enough to support producers .

The aging of tea-producing regions is also a cause for concern. The proportion of people aged 65 and over has increased by 10%, from 51% (2000) to 61% (2020) . Furthermore, the overall decline in the number of people working in agriculture is said to be unstoppable. (From the Ministry of Agriculture, Forestry and Fisheries' " The Situation Surrounding Tea ")

These trends show that the current matcha boom is largely driven by demand from overseas, and is not necessarily supported by the domestic market.

While matcha and Japanese tea have become beloved around the world, the challenges facing Japanese production sites, such as an aging population and shrinking domestic demand, are by no means small.

The global popularity of matcha is due in part to a coffee bean shortage and rising prices

How big is matcha's popularity around the world?

In 2023, the overseas export value of green tea was 29.2 billion yen. Demand for powdered tea, including matcha, is expanding rapidly. For example, looking at Japanese tea exports in August 2025, exports to the United States increased by 243% compared to the same month last year, and exports to the EU also showed an astonishing 189% increase . This shows that matcha is gaining presence and steadily spreading around the world.

Japanese tea exports for the fiscal year ending August 2025

Total export amount	5.85 billion yen (up 126.9% from the same month last year)
Total export volume	1,033.1t (60.7% increase compared to the same month last year)
Exports to the United States	2.12 billion yen (243.0% increase) Of which, powder: export value 277.7%, export volume 274.9%
Exports to the EU	1.23 billion yen (189.8% increase) Powdered: Export value 242.8%, export volume 187.8%

The popularity of matcha is said to be due to the growing health consciousness, but did you know that there is a concerning trend behind this: the price of coffee beans is rising noticeably?

In the United States, where coffee is consumed daily, the price of Arabica beans increased by approximately 2.95 times and that of Robusta beans by approximately 3.4 times between 2019 and 2025. Furthermore, as of August 2025, the price of all coffee products increased by approximately 21% compared to the same period last year.

The reasons for this price increase include rising raw material costs in producing countries and high tariffs imposed on imported goods. Given this background, it is only natural that retailers are turning their attention to matcha as an alternative to coffee . ( Statista , DAILY COFFEE NEWS )

As matcha's popularity grows worldwide, matcha production in China is also expanding rapidly . This trend should not be seen as mere regional competition, but rather as a sign that a major change is occurring in the global supply system.

The boom will end someday. The backs of producers around the world

The current matcha boom has also been fueled by changes in the coffee industry. The coffee industry is one step ahead of matcha, and there may be something we can learn from it.

There is a problem known as the "Coffee 2050 Problem." This is the prediction that the area where Arabica beans, which account for approximately 60% of the world's coffee beans, are cultivated will be halved by 2050 due to the effects of climate change caused by global warming.

Coffee is a huge industry, produced in over 70 countries around the world and employing approximately 25 million households. However, most coffee farmers are small-scale farmers with cultivation areas of less than 5 hectares, and the main producing areas are developing countries with poverty issues, such as Latin America and Africa. Furthermore, the smaller the farm, the more susceptible they are to major damage from even minor natural disasters, and production costs such as pesticides can sometimes exceed their income .

The coffee industry, which once grew rapidly, is now at a turning point due to the harsh environment surrounding producers, including unstable and low coffee bean prices and rising production costs, which are causing an increase in farmers leaving the industry and a decrease in the amount of land used for cultivation.

Economic growth and increased consumption in one country can create distortions in faraway production sites . This is true not only in Japan, but also in production sites around the world.

And once a boom occurs, it will eventually end. When that happens, what do we want to leave behind ?

History teaches us: The story of silk exports that supported Japan

The movement of culture and economy spreading around the world, such as with matcha and coffee, did not actually begin in modern times.

Looking back to the past, there was a major export product that once supported Japan's economy: silk.

Silk has a long history, having been introduced from China during the Yayoi period and developed alongside Japan's unique silk-raising, dyeing, and weaving techniques . In Japan, it was used for kimonos and obi sashes, and was cultivated as a material that reflected traditional lifestyles and a unique aesthetic sense . Meanwhile, around the world, it was so precious and noble that the Silk Road was built around it.

At a time when Japan did not have the economic power it has today, the opening of the Port of Yokohama in 1859 marked the beginning of the export of raw silk overseas. Fifty years later, in 1909, Japan became the world's leading exporter of raw silk. For 75 years, from the port's opening until 1934, silk consistently held the top spot in Japan's export value, and continued to support the country's development as an industry that earned foreign currency .

In terms of production, by 1930, approximately 40% of farmers nationwide were involved in sericulture , and it is said that in Gunma, Nagano, and Yamanashi in particular, 70% of farmers were involved in sericulture. The Tomioka Silk Mill, a World Heritage Site, succeeded in mass-producing raw silk, creating an opportunity to spread silk, which had previously been the preserve of a privileged class, to a wider range of people. Its high quality and techniques eventually spread overseas, leading to the development of the silk industry on a global scale.

However, after the war, Japan's silk industry began to shrink little by little. This was due to the emergence of low-cost alternative materials such as polyester, which were suitable for mass production, and a decline in domestic demand for silk . As lifestyles became more Westernized, opportunities to use silk in traditional attire such as kimonos decreased, and silk gradually became less and less a part of people's lives.

Overseas demand supports growth and expansion. However, if the culture is not rooted in daily life in Japan, some things will be lost. The history of Japan's silk industry quietly teaches us this lesson.

What we can do now: Continue to nurture culture in our daily lives

Matcha has taken on a new form, "matcha latte," and has become loved all over the world. It is wonderful to see how this simple change has brought the taste of Japan to so many more people. Matcha is now on par with coffee, and its popularity continues to grow as it evolves in sweets and recipes.

On the other hand, the aging of the workforce and lack of successors in Japan's production sites are progressing, and if things continue as they are, it may become difficult to maintain "Japanese matcha" in its current form. As matcha becomes more beloved around the world, the question arises of how to protect and nurture its origins.

However, spreading culture around the world is not an end, but also a new beginning. "Becoming known to many people" and "passing on culture" should not be in conflict, but should be mutually enriching.

Long ago, Japan learned tea, culture, and techniques from China, reinterpreting them and elevating them into its own unique culture. Japan has nurtured its own unique culture by flexibly incorporating and reinterpreting foreign cultures. And now, matcha has been reinterpreted and is spreading around the world.

Culture is not something closed, but something that changes shape little by little as it flows.

So, let's reinterpret culture, incorporate it into our daily lives, and cultivate it. Culture is not something that is protected by a special someone, but something that lives in the lives of each and every one of us. Choosing tea, appreciating tableware, using items handmade by artisans -- we believe that these small everyday choices will nurture culture and connect it to the future.

We hope that people can feel closer to Japan's traditional culture, activities, and the sensibilities that reside within them in their daily lives. MCKK products were born from this idea and are carefully made by hand using raw materials from all over Japan.

From "protecting" culture to "connecting" it.

Beyond this peaceful cycle, the future of Japan is surely to be revealed.