We expect to make changes to the specifications of some of our products in October/November 2026, along with revisions to pricing. We would like to explain the changes in advance.
Last year, we asked for your understanding regarding pricing and purchase restrictions. Japanese tea production levels for 2026 are now largely fixed, and it has become clear that changes are also necessary this year. We would like to explain the circumstances that led to these revisions and our thinking regarding the situation.

Background and Our Response

Surge in matcha demand

From around 2024, interest in matcha increased throughout the world and demand surged. However, Japanese tea is ultimately a product of nature. New fields can be planted, but it takes about five years until the leaves can be harvested. Consequently, production cannot be increased right away, even if demand rises. This constraint meant that in 2025 there was not enough Japanese tea produceｄ to satisfy demand. The market price of matcha increased significantly, rising to a high level per kilogram compared to gyokuro, sencha, and bancha varieties such as hojicha and genmaicha. At Ippodo, we found ourselves unable to satisfy the demand from our customers. Our October 2025 changes were designed to make it easier for more people to buy Japanese tea by revising the pricing of matcha products and changing product specifications.

Effect on other Japanese teas

In Japanese tea production, the same tea plants can produce a range of teas, such as matcha, gyokuro, sencha, and bancha. Farmers and producers adjust how the plants are cultivated and how the tea is processed after harvesting. Japanese tea production in 2026 shifted even more towards matcha production, with a substantial drop in production of gyokuro, sencha, and bancha. Bancha teas have a lower market price, and are expected to be impacted in a particularly big way. Bancha is deeply rooted in people’s everyday lives. In February 2026, we introduced purchase limits on our bancha tea products. The aim was to ensure that as many people as possible could continue to enjoy bancha, even if it meant each individual could buy less.

Japanese Tea Market Circumstances in 2026

The market price of Japanese tea

Market trading in Japanese tea began in April, and trading in spring tea (first harvest tea) and summer tea (second harvest tea) has finished for the most part. As previously anticipated, production of gyokuro, sencha, and bancha teas dropped significantly, resulting in their market price rising dramatically. Matcha production rose significantly, but demand for it remained strong, resulting in a higher market price than last year.

What we have gleaned from market prices

Although the market price of sencha and bancha teas rose significantly, matcha continues to have a higher price per unit weight. And, while the price of gyokuro as well has risen to a level that is close to that of matcha, we currently think that growers will continue to shift towards matcha production due to the high crop yields and production efficiency it offers.

The changes we are making in October/November 2026

We are keeping a close eye on the centres of production in Japan and on the status of tea leaves so that we can be sure of purchasing the tea required to produce our regular brands. Our highest priority is maintaining and improving the flavour and quality of our products. We are also committed to offering products that our customers can consider good value. Under current circumstances, it has become difficult to maintain flavour and quality without changing our prices. We felt it would make it harder for customers to continue to purchase and enjoy our products if we simply revised prices while keeping specifications unchanged. Therefore, we decided to make changes to product specifications at the same time as price revisions. We continue to prioritise flavour and quality.

The Current Outlook and Ippodo’s Approach

It is difficult to imagine prices reverting to the levels that applied until a few years ago. There are likely to be fluctuations from year to year, but we anticipate that prices will stay broadly similar to current levels for some time. However, we have to say that the current situation makes it very difficult for anyone to provide a highly accurate forecast.

It is important to note that the previous market prices were at a level that made it difficult for tea producers to sustain the production of Japanese tea in the first place. The number of tea growers has been declining year by year, but supply had continued to exceed demand, keeping market prices low. It is hard to see how a return to such price levels could ensure the sustainable production of Japanese tea over the long run.

However, we realise that price levels are higher than many of our customers would like. We have noticed that as prices rise, customers are having to change the way they drink Japanese tea, and may not be able to drink tea as often as they would like. We are concerned that this trend may continue.

Market prices are expected to remain unstable for a while, but for the sake of our customers and tea producers, and for our sake as well, we hope that prices will eventually stabilise and a more balanced situation will be achieved.

Going forward, we remain committed to providing you with delicious Japanese tea, prioritising flavour and quality above all else. We endeavour to ensure that our tea products are well worth the price. We appreciate your support for Ippodo, and look forward to continuing to serve you.

Masakazu Watanabe, President
Ippodo Tea Co., Ltd.