Japan¡¯s green tea exports are surging, driven by a strong matcha boom around the world.

According to customs-cleared trade statistics released by the Finance Ministry on Tuesday, exports of green tea in fiscal 2025, which ended in March, reached 13,125 tons, up 42% from the previous year.

By value, exports rose more than twofold to ?84.7 billion due to soaring prices amid growing global demand.

Meanwhile, an influx of inexpensive foreign green tea into Japan has put domestically produced tea at a crossroads.

Powdered green tea, including matcha, accounted for about 70% of the total export volume, while shipments of other types of green tea, such as sencha, declined year on year.

The government views green tea as a key driver of exports of agricultural, forestry and fishery products and foods, on the back of the popularity of matcha-flavored desserts and drinks overseas.

Although domestic production of tea is on a moderate downtrend, that of tencha, the material of matcha, grew for four consecutive years through 2024.

Unit prices of tencha have also been rising, prompting some producers to shift from sencha, which had long been the industry¡¯s mainstay, to tencha.

In fiscal 2025, Japan imported 5,801 tons of green tea from China and other countries, an 82% increase from the previous year.

According to Japanese research firm Teikoku Databank, the number of domestic tea producers that closed temporarily or permanently in 2025 reached a record high of 13, up from eight in the previous year.

Because about 40% of tea plantations are located in hilly or mountainous areas and tea farmers are aging, switching to tencha, which requires a different manufacturing method from sencha, remains challenging.

¡°We want to promote the healthy growth of the Japanese tea industry,¡± said an official at major Japanese green tea beverage maker Ito En, which focuses on domestic products. The official stressed the need for accelerated efforts to strengthen the industry¡¯s production foundations and brand power.