Monthly Matcha Market & Origin Report – May 2026
May 2026: Strong Tencha Demand in Japan’s First Crop Season
Starting Our Monthly Matcha Market & Origin Report
MATCHA DIRECT is launching Monthly Matcha Market & Origin Report for our B2B customers.
Through this report, we will regularly share information we gain through our daily work in procurement, production, and international supply, including updates on the matcha market, growing regions, crop conditions, and insights from production sites.
Matcha is not simply a “green powdered tea.” Its color, aroma, taste, and usability can vary greatly depending on the quality of tencha, the raw material used to make matcha, as well as the growing region, harvest timing, processing methods, storage, and transportation conditions. For cafés, restaurants, brand owners, and other professional users, securing a stable supply of consistent-quality matcha is directly connected to product development and the value they provide to their customers.
Through this report, we hope to share what is happening in the current matcha market in a clear and practical way. This also reflects the original purpose of this initiative: to provide first-hand information for B2B customers and to further enhance the reliability and transparency of MATCHA DIRECT.
2026 First Crop Season: Supply Is Growing, but Demand Is Even Stronger
In the 2026 first crop season, strong demand for tencha, the raw material used to make matcha, has already become clear at an early stage.
As global demand for matcha continues to grow, more tea fields and raw materials that were traditionally used for steamed green tea are being converted to tencha production. As a result, the overall supply of Japanese tencha appears to be increasing significantly.
At the same time, demand is strong enough to exceed this increase in supply. In both Kyoto/Uji and Kagoshima, market prices have remained at high levels.
The current market situation is not simply a matter of “insufficient supply.” Supply volume is expanding, but demand is growing even more strongly. This is one of the key characteristics of this year’s season.
Growing Conditions This Season
Growing conditions in the tea fields have been relatively favorable this year.
There has been a reasonable amount of rainfall, and the impact of cold weather has been limited. As a result, new shoots have generally grown well.
On the other hand, dry conditions from last summer through autumn made it more difficult for tea plants to absorb fertilizer sufficiently. Because of this, the number of new shoots appears to be somewhat limited.
However, rainfall from March onward has been sufficient, and new shoot growth has progressed well. As a result, many teas this year show a solid flavor and good overall quality.
In other words, this is not a year of poor growing conditions or poor quality. Rather, while we are seeing good-quality teas, the strong demand for tencha and matcha is having a major impact on the overall market.
Kagoshima: Public Market Data Shows a Significant Increase
In Kagoshima, tencha from the 2026 crop has been trading at prices significantly higher than the previous year.
At the 2026 prefecture-wide tencha trading event held by the Kagoshima Prefecture Tea Industry Council, the average price for conventional and organic tencha combined increased by approximately 80% compared with the previous year.
Publicly available, continuous market data for tencha in Kagoshima is limited. Therefore, although this was a spot trading event, it can be considered one useful reference point for understanding the strength of the 2026 raw material market.
Kyoto / Uji: High Price Levels from the Early Stage
The Kyoto/Uji market has also remained at high levels from the early stage of the 2026 season.
The JA Kyoto early-season tencha auctions have now completed their fourth round for 2026. Based on the weighted average through the fifth auction, held on May 22, prices are approximately 32% higher than the overall average for 2025.
In addition, the fifth auction alone was approximately 51% higher than the 2025 average, confirming that the market has already been significantly above last year’s level from the early stage of the season.
In 2025, prices tended to rise as the auction season progressed. In 2026, however, prices have already started at a high level from an early stage, clearly reflecting the strength of demand for tencha in the Kyoto/Uji market as well.
As these examples show, strong demand for tencha is being reflected in market prices not only in Kagoshima, but also in Kyoto/Uji.
About Pricing for Products Using the 2026 Crop
Given these market conditions, we understand that some customers may be concerned about how this could affect the selling prices of products using the 2026 crop.
For products using 2026 crop raw materials, we will carefully review our selling prices after our procurement conditions have been confirmed.
We recognize that this may be a concern. However, at this stage, we are not yet able to provide a clear answer, even if you contact us individually. We appreciate your understanding.
MATCHA DIRECT’s Approach
The matcha market is changing significantly. We believe that 2026 will be an important year for both producers and businesses using matcha.
At MATCHA DIRECT, we will continue working on various operational improvements and rationalization measures while striving to build a supply system that is as stable as possible.
At the same time, what we value most is quality. Even as the market environment changes, we will continue to place quality first and build a supply system that can support our customers’ businesses over the long term.