Monthly Matcha Market & Origin Report – July 2026
July 2026: Kyoto First Crop Tencha Prices Rise, While Second Crop Prices Remain Stable So Far
Kyoto First Crop Results and Second Crop Progress
Final First Crop Market Results
As reported in last month’s report, the 2026 first crop tencha auction season at JA Kyoto had already concluded. Since then, JA Kyoto has released its final transaction data, covering not only auction sales but also other transactions handled through JA. We would therefore like to provide an updated overview of the final results for the first crop season.
The volume-weighted average auction price for first crop tencha finished at approximately 122% of the 2025 average. Meanwhile, JA Kyoto’s total transaction volume for first crop tencha, including both auction and non-auction transactions, increased from approximately 487 tons to 583 tons. Although prices rose compared with last year, the increase in overall transaction volume is a positive sign from a supply perspective.
During the first half of the auction season, prices remained high as expanding global demand for matcha and active purchasing by tea manufacturers seeking to secure raw materials supported the market. At the beginning of the season, many market participants, including ourselves, expected production to remain at a level similar to 2025. As a result, auctions started at relatively high price levels.
However, as the harvest progressed, it became clear that first crop tencha production had reached approximately 1.2 times the previous year's level. With supply exceeding initial expectations, market prices gradually stabilized during the latter half of the auction season.
Although prices moderated from the early-season peak, the first crop market ultimately closed at a level above that of 2025.
Second Crop Market Progress
Meanwhile, second crop tencha auctions at JA Kyoto began on June 23.
As of July 20, the average auction price stands at approximately 96% of the 2025 level, indicating a more stable market than the first crop season. With the second crop auctions now entering their final stages, the overall market trend is becoming clearer, although the final results may still change somewhat before the season concludes.
One possible reason why second crop prices have remained close to last year's level is that many tea manufacturers were able to secure enough lower-grade first crop tencha during the first crop season. As a result, there has been less need to purchase second crop material aggressively at higher prices.
In addition, only a limited portion of Kyoto's second crop tencha meets the standards required for export markets, and demand is therefore centered mainly on the domestic market. At present, sales of processing-grade matcha within Japan have been relatively weak, resulting in limited demand for second crop tencha. For now, there appear to be few factors supporting higher prices.
On the other hand, MATCHA DIRECT's #081 Culinary Matcha is produced using second crop tencha from Kagoshima. Kagoshima produces a larger volume of second crop tencha for export markets, and demand supported by overseas consumption remains strong. More broadly, market conditions in Kagoshima continue to differ from those in Kyoto.
Different Price Impacts for Kyoto and Kagoshima
We will provide more details on the impact of the current market on our product pricing in a separate announcement. However, based on current market conditions, we expect the price impact on our Uji lineup to be relatively limited.
On the other hand, as mentioned in our previous report, the market price for first crop tencha in Kagoshima has increased by approximately 80% compared with last year, driven by strong demand from export markets.
As a result, the expected price impact differs between products made with Kyoto-grown and Kagoshima-grown tea.
Rising Prices for Karinaoshi, a Key Hojicha Raw Material, and the Impact on #092 Kuki Hojicha
In addition to matcha, raw materials used for hojicha have also experienced significant price increases this year.
The average auction price for Karinaoshi (first crop leaves used for hojicha production) reached approximately 224% of the 2025 level. Compared with 2024, prices have increased to nearly four times their previous level.
As demand for matcha continues to expand, more producers have shifted toward the more profitable production of tencha. As a result, the trading volume of first crop Karinaoshi declined from approximately 85 tons to 68 tons, or 80% of the previous year's level.
MATCHA DIRECT also offers #092 Kuki Hojicha, but unlike most hojicha products, it is made by roasting tencha stems (kuki hojicha) rather than Karinaoshi. Because tencha stems have a different supply chain and market structure from conventional hojicha raw materials, we believe this product is relatively less affected by the recent increase in Karinaoshi prices and the decline in supply.
If you have not yet tried #092 Kuki Hojicha, we hope you will consider adding it to your menu.
A "Once-in-a-Decade" Harvest
While the market has remained firm, we are also pleased to share some positive news regarding this year's tea quality.
In addition to purchasing tea through the Kyoto auction market, MATCHA DIRECT also sources tea directly from tea farmers.
One of our partner growers in Uji, Mr. Nishikawa, described this year's first harvest as "the best in the past ten years."
After evaluating this year's teas ourselves, we share a similar impression. The balance of aroma, color, and umami is exceptionally good, resulting in teas of outstanding overall quality.
Growing conditions in Uji were particularly favorable this season. Moderate rainfall before harvest, cool nights and warm days, and the absence of frost damage provided ideal conditions for tea cultivation. Combined with the daily care of experienced growers and careful decisions regarding harvest timing, these conditions contributed to exceptionally high-quality tea.
Based on the teas we have evaluated, this positive impression is not limited to Mr. Nishikawa's tea. Overall, we have been encouraged by the quality of many of the teas produced in Uji this year.
