Japan's tea fields shrink as matcha demand soars globally

The world is experiencing a significant "matcha craze," with the powdered green tea becoming a popular ingredient in lattes, coffee drinks, and various other beverages. However, this global demand stands in stark contrast to the situation in Japan, the primary producer of matcha, where tea fields are facing a dramatic decline.

According to the Nikkei Shimbun, the area of tea fields in Japan's major production regions decreased by approximately 16,100 hectares between 2020 and 2025. Projections indicate that if this trend continues, 80% of the current tea fields could disappear by 2050, leaving only about 5,000 hectares. In areas like Shizuoka, tea fields on steep slopes are being abandoned, and the number of farmers in local cooperatives has dwindled significantly over the past few decades.

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We can no longer even hear the engines of the vehicles that visit to transport the tea leaves during harvest season.

The core reason behind this decline is the aging population of farmers. Data shows that a vast majority of agricultural workers in Japan are over 60 years old. This demographic challenge is particularly acute in the tea industry, where a prolonged period of stagnant demand prior to the recent matcha boom led to insufficient investment in training and attracting new generations of tea growers. Consequently, the tea plants themselves are also aging, with about 40% of tea fields consisting of trees over 30 years old, nearing the end of their economically productive lifespan.

In response to this crisis, the Japanese government is actively seeking to capitalize on the renewed global interest in matcha. Initiatives include providing subsidies to tea farmers, encouraging a shift in cultivation from traditional green tea ('sencha') to 'tencha', the raw material for matcha, and promoting the adoption of modern farming techniques. Efforts are underway to foster young farmers, expand mechanization, and develop advanced cultivation management methods using technologies like drones. Companies are also investing in new facilities, with one matcha exporter establishing a new plant capable of producing approximately 200 tons of matcha annually, anticipating a strong return on investment due to robust global demand.

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The world's demand for matcha is so strong that we can fully recoup our investment.