Exports of green tea, including matcha, stood at 12,612 tons in 2025, an increase of about 3,800 tons from the previous year and have tripled over the past decade. The last time exports exceeded 10,000 tonnes was about 70 years ago.

In 2025, the export value surged to about 72.1 billion yen, nearly doubling the previous record of 36.4 billion yen set in 2024. By country and region, the US accounted for the largest share at 29.3 billion yen, with demand also growing in Europe and South-East Asia.

Growing health consciousness and a boom in Japanese food, particularly in the US and Europe, are fueling demand for matcha. While drinks such as matcha lattes have gained wide recognition, matcha has also become a popular ingredient in sweets such as parfaits and crepes.

The matcha market is projected to reach $7.43 billion (about 1.1 trillion yen) by 2030.

National output slipped from 84,000 tons in 2014 to 74,000 tons in 2024.

Domestic consumers, however, are beginning to feel the strain. The impact of rising tea leaf prices is already rippling through the consumer market. In December 2025, major beverage makers announced a new round of price increases for their ready-to-drink tea products.

Source: Asahi.com/The Strait Times (Extracts), Courtesy: Tea Exporters' Association Sri Lanka