Ito En Announces Initiatives for Sustainable Production and Value Enhancement as Japanese Tea Supply-Demand Structure Undergoes Transformation with Simultaneous Export Expansion and Import Growth
Ito En held a press conference to share the current state of significant changes in the supply and demand structure surrounding Japanese tea, driven by the global expansion of matcha demand. The company announced three initiatives: "100% domestically grown tea leaves," "new tea producing region development project," and "global expansion," aimed at strengthening a sustainable production base and enhancing the value of Japanese tea.
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- 📰 Published: May 13, 2026 at 04:09
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Ito En Co., Ltd. (President: Daisuke Honjo, Headquarters: Shibuya-ku, Tokyo) held a press conference titled "Towards a Developed Future for Japanese Tea ~Together with Producers. Japanese Tea to the World~" in Tokyo on May 12th (Tuesday). The event aimed to share the current state of significant changes in the supply and demand structure surrounding Japanese tea, driven by the global expansion of matcha demand, and to announce initiatives for strengthening a sustainable production base and enhancing the value of Japanese tea.
While demand for matcha continues to expand in overseas markets, domestic demand for loose-leaf tea consumed in teapots is decreasing, and consumption styles are changing, with demand for first-flush tea shrinking. Consequently, the demand structure by use has also changed, with relatively higher demand for second-flush tea and later, which is suitable for beverage use.
Amidst these changes, the supply and demand structure of Japanese tea is at a major turning point. In addition to the increase in tencha demand domestically, imports of foreign tea leaves are increasing again to compensate for supply-demand imbalances. In fact, while tea exports continued to expand in 2025, imports also increased by 52% year-on-year (*1), and there are signs of domestic demand being partially met by foreign raw materials. Furthermore, at the first new tea auction in 2026, prices reached record highs in various producing regions, indicating sustained high tea prices due to changes in the supply and demand structure.
In anticipation of such environmental changes, our company has been developing its business primarily with Japanese tea, including "Oi Ocha," based on the "Tea Producing Region Development Project," which has been engaging in dialogue with producers since 1976 with the perspective of "what kind of tea will be demanded by the market in the future." At this press conference, we announced the structural challenges facing Japanese tea and our initiatives to address them.
Structural Changes Surrounding Japanese Tea and Our Initiatives (Mitsumasa Shida, Executive Officer, Ito En)
Demand for matcha continues to expand in overseas markets, with Japanese tea exports increasing approximately 11-fold over the past 20 years (*1). On the other hand, domestic production has decreased by about 30% over the past 20 years (*2), and the number of farming households has decreased by about 65% over 15 years (*3), indicating a shrinking production base. In light of this situation, our company announced three measures at this press conference to respond to changes in the supply and demand structure: ① "100% domestically grown tea leaves," ② "new tea producing region development project," and ③ "global expansion."
Among these, "100% domestically grown tea leaves" clearly articulates our company's stance of aiming for sustainable and vibrant tea-producing regions together with Japanese producers and enhancing global value. This initiative is positioned as symbolizing our future policy for Japanese tea. As a concrete effort, the phrase "100% domestically grown tea leaves" will be sequentially displayed on the packaging of the "Oi Ocha" brand starting Monday, May 18th.
The "Tea Producing Region Development Project" celebrates its 50th anniversary this year, and in cooperation with producers, we have been working together from variety selection to cultivation and manufacturing lines. This time, as an evolved form of this project, we announced the promotion of a "hybrid production method" that allows both tencha and sencha to be produced in the same factory according to supply and demand. In the announcement, it was stated, "Many producers are concerned about how long the matcha boom will last and whether to shift to tencha production. Ito En wants to support producers who are challenging new production systems by expanding the 'hybrid production method' to produce both tencha and sencha according to demand." This mechanism aims to enhance responsiveness to supply and demand fluctuations and stabilize producers' management.
Furthermore, as an initiative to enhance the value of Japanese tea, we expressed our support and promotion for the National GI "Japanese Tea" concept, demonstrating our commitment to enhancing the international value of Japanese tea, centered on the world's No. 1 green tea beverage brand "Oi Ocha" (*4).
Finally, it was stated, "Japanese producers also want to enhance the value of Japanese tea in the context of 'terroir,' combining the natural elements of each producing region with craftsmanship, and spread it globally, similar to coffee, wine, champagne, and sake. Ito En wants to firmly support such activities, taking this National GI concept as an opportunity," concluding the presentation with a sense of responsibility as the No. 1 brand and a determination to participate in and promote the National GI "Japanese Tea" concept.
"The Future of Japanese Tea" Considered with Producers
At this press conference, a talk session was also held with actress Kasumi Arimura, who appears in Ito En's commercials, and contract tea farmers. Opinions were exchanged on the appeal of Japanese tea, the challenges faced by producing regions amidst changes in the demand structure, and how to address them.
Ms. Arimura, who planted a seedling three years ago, said, "I had a valuable experience connected to the future of Japanese tea. I am very much looking forward to seeing how this seedling will grow in the future." In response, Shogo Horiguchi of Horiguchi-en Co., Ltd. and Daisuke Horiguchi of Kagoshima Horiguchi Seicha Co., Ltd., both contract farmers in Kagoshima, discussed the tea producing region development project they are undertaking with Ito En and the national initiatives.
While demand for matcha continues to expand in overseas markets, domestic demand for loose-leaf tea consumed in teapots is decreasing, and consumption styles are changing, with demand for first-flush tea shrinking. Consequently, the demand structure by use has also changed, with relatively higher demand for second-flush tea and later, which is suitable for beverage use.
Amidst these changes, the supply and demand structure of Japanese tea is at a major turning point. In addition to the increase in tencha demand domestically, imports of foreign tea leaves are increasing again to compensate for supply-demand imbalances. In fact, while tea exports continued to expand in 2025, imports also increased by 52% year-on-year (*1), and there are signs of domestic demand being partially met by foreign raw materials. Furthermore, at the first new tea auction in 2026, prices reached record highs in various producing regions, indicating sustained high tea prices due to changes in the supply and demand structure.
In anticipation of such environmental changes, our company has been developing its business primarily with Japanese tea, including "Oi Ocha," based on the "Tea Producing Region Development Project," which has been engaging in dialogue with producers since 1976 with the perspective of "what kind of tea will be demanded by the market in the future." At this press conference, we announced the structural challenges facing Japanese tea and our initiatives to address them.
Structural Changes Surrounding Japanese Tea and Our Initiatives (Mitsumasa Shida, Executive Officer, Ito En)
Demand for matcha continues to expand in overseas markets, with Japanese tea exports increasing approximately 11-fold over the past 20 years (*1). On the other hand, domestic production has decreased by about 30% over the past 20 years (*2), and the number of farming households has decreased by about 65% over 15 years (*3), indicating a shrinking production base. In light of this situation, our company announced three measures at this press conference to respond to changes in the supply and demand structure: ① "100% domestically grown tea leaves," ② "new tea producing region development project," and ③ "global expansion."
Among these, "100% domestically grown tea leaves" clearly articulates our company's stance of aiming for sustainable and vibrant tea-producing regions together with Japanese producers and enhancing global value. This initiative is positioned as symbolizing our future policy for Japanese tea. As a concrete effort, the phrase "100% domestically grown tea leaves" will be sequentially displayed on the packaging of the "Oi Ocha" brand starting Monday, May 18th.
The "Tea Producing Region Development Project" celebrates its 50th anniversary this year, and in cooperation with producers, we have been working together from variety selection to cultivation and manufacturing lines. This time, as an evolved form of this project, we announced the promotion of a "hybrid production method" that allows both tencha and sencha to be produced in the same factory according to supply and demand. In the announcement, it was stated, "Many producers are concerned about how long the matcha boom will last and whether to shift to tencha production. Ito En wants to support producers who are challenging new production systems by expanding the 'hybrid production method' to produce both tencha and sencha according to demand." This mechanism aims to enhance responsiveness to supply and demand fluctuations and stabilize producers' management.
Furthermore, as an initiative to enhance the value of Japanese tea, we expressed our support and promotion for the National GI "Japanese Tea" concept, demonstrating our commitment to enhancing the international value of Japanese tea, centered on the world's No. 1 green tea beverage brand "Oi Ocha" (*4).
Finally, it was stated, "Japanese producers also want to enhance the value of Japanese tea in the context of 'terroir,' combining the natural elements of each producing region with craftsmanship, and spread it globally, similar to coffee, wine, champagne, and sake. Ito En wants to firmly support such activities, taking this National GI concept as an opportunity," concluding the presentation with a sense of responsibility as the No. 1 brand and a determination to participate in and promote the National GI "Japanese Tea" concept.
"The Future of Japanese Tea" Considered with Producers
At this press conference, a talk session was also held with actress Kasumi Arimura, who appears in Ito En's commercials, and contract tea farmers. Opinions were exchanged on the appeal of Japanese tea, the challenges faced by producing regions amidst changes in the demand structure, and how to address them.
Ms. Arimura, who planted a seedling three years ago, said, "I had a valuable experience connected to the future of Japanese tea. I am very much looking forward to seeing how this seedling will grow in the future." In response, Shogo Horiguchi of Horiguchi-en Co., Ltd. and Daisuke Horiguchi of Kagoshima Horiguchi Seicha Co., Ltd., both contract farmers in Kagoshima, discussed the tea producing region development project they are undertaking with Ito En and the national initiatives.