The great matcha rivalry: Can Japan’s centuries-old tradition hold its own against China’s scale?

In the heart of Japan’s ancient tea capital, Uji, the demand for matcha continues to surge despite rising prices and production challenges. At Horii Shichimeien, one of the oldest tea stores in the area, customers wait patiently for their chance to purchase the prized green powder. The shop, known for its award-winning matcha, now sells tins priced at nearly US$170 each, three to five times the price from five years ago. This steep increase reflects a broader shift in the market, driven by both domestic and international interest in the delicate Japanese tea. Chotaro Horii, president of Horii Shichimeien, acknowledges the strain on supply. “Japanese tea was on a downward trend, but the matcha boom overseas rescued us,” he explained. However, the success has brought new challenges. With demand outpacing supply, the company must balance efficiency with quality. The production of matcha is a meticulous process that begins with the cultivation of tencha, the special tea leaves used to make matcha. These leaves are shaded for 20 to 40 days before being harvested, ensuring the deep color and rich flavor characteristic of premium matcha. Once harvested, the leaves are quickly transported to processing facilities where they undergo steam treatment to halt oxidation. After drying and de-stemming, the leaves are ground using traditional stone mills. Each mill produces only 40 grams of matcha per hour, highlighting the labor-intensive nature of the craft. Horii Shichimeien operates approximately 80 such mills, shared among seven local tea growers to manage costs. Only 10 of these mills are dedicated to producing the highest-quality matcha, underscoring the exclusivity of the product. Despite these efforts, Japan faces a growing gap between demand and supply. According to Japan’s agriculture ministry, exports of Japanese green tea, including matcha, have reached record levels for six consecutive years. In 2025, exports surpassed 12,600 tonnes, marking a 43 percent increase from the previous year. While production of tencha has more than tripled over the past decade, reaching over 6,200 tonnes in 2025, the challenge persists. This situation has prompted a closer look at alternative producers, particularly in China. In the remote mountains of Guizhou Province, the city of Tongren has emerged as a key player in the global matcha market. Once a neglected region, Tongren’s cool climate and ample rainfall have historically supported tea growth, though economic opportunities remained limited. As global demand for matcha expanded, local governments began encouraging tea farming, offering financial incentives and technical support. This initiative transformed previously unproductive land into a thriving matcha supply chain. Farmer Yang Xiuyuan, 71, has witnessed this transformation firsthand. “This used to be a wasteland. Now that it's planted with tea, it brings in income, so earnings are higher,” he noted. His daily earnings of 100 yuan (approximately US$15) reflect the newfound economic stability for many in the region. Over 100,000 farmers now rely on matcha production in Guizhou, a number that underscores the scale of China’s involvement in the industry. Tongren alone accounts for roughly a fifth of China’s matcha output, contributing significantly to the country’s status as the world’s largest producer. According to the China Tea Marketing Association, China supplied about 70 percent of the global matcha market in the previous year, producing over 12,000 tonnes. Among Chinese producers, Gui Tea stands out, having sold more than 2,500 tonnes in the same period. A substantial portion of this output was exported to over 50 countries, further solidifying China’s role in meeting global demand. As Japan grapples with its own production limitations, the competition with China intensifies. Both nations face unique challenges: Japan’s small-scale, artisanal approach contrasts with China’s large-scale, industrial methods. Yet, the global appetite for matcha shows no signs of waning, prompting ongoing discussions about sustainability, quality, and the future of this beloved green tea.