Nov 6, 2025
The Matcha Supply Shift: Why Businesses Are Moving from Japan to China in 2025
Japan’s Matcha Supply Crisis in 2025
Japan has long been the world’s premium matcha source, but in 2025 the cracks are showing. Record heatwaves hit the Uji and Kyoto regions, key tencha-leaf producing areas, reducing yields by as much as 25 %.
Meanwhile, global demand has surged. As one of the leading wholesale matcha suppliers in Europe, we’ve seen firsthand how this demand has outpaced Japan’s capacity. Japan’s powdered green-tea exports jumped ~75 % in 2024, and tencha leaf prices have more than doubled. In 2025, these numbers are not yet disclosed, but from industry insights - they are estimated to be the same.
Why First-Harvest Tea Leaves Matter (and Why They Are Fewer)
The premium quality that differentiates high-end matcha comes from the first spring harvest of shade-grown tea plants.
Once that first flush is done, supply drops dramatically. Many Japanese producers for 2025 have already booked their entire first-flush crop and are not offering new customer allocations until the next cycle.
For large-scale users (cafés, vending, foodservice, fast food chains) this means a decisive sourcing challenge.
China’s Matcha Emergence: The Strategic Alternative
With Japanese supply under tight constraint, many businesses are turning to China - not as a compromise, but as a strategic sourcing move.
China’s Matcha Quality Has Caught Up
Historically Chinese matcha was perceived as lower in quality. Today, regions such as Guizhou and Wuyi are enhancing cultivation, processing and export systems. For example, China’s southwest county sold over 1,200 tonnes of matcha in 2024 and is set to exceed 5,000 tonnes in 2025. A recent report noted: “The quality is now improving, leading to a shift in global perceptions and preferences towards Chinese matcha.”
Scale, Lead-Time and Cost Advantages
China offers larger scale operations, shorter lead-times and lower landed cost compared to Japanese specialty volumes. For wholesale buyers this matters as much as origin - which is why matcha wholesale from China is becoming the most reliable sourcing option for 2025 and beyond.
Major players who once relied exclusively on Japanese matcha now source from China for volume channels - because when the priority is stability and scale, cost and supply reliability win. Our clients cut procurement lead-times by up to 40 % by using our dual-origin system.
Business Implications for European Matcha Buyers
Cafés, vending operators and private label brands across Europe are feeling the pressure. Restaurants report delivery delays of 2–3 months for Japanese matcha, and cost increases threatening margin.
Switching to Chinese-sourced matcha provides:
More reliable supply chains
Improved pricing stability
Similar if not exactly the same quality
Why Are Businesses Switching from Japan to China for Matcha in 2025?
The global matcha market size is headed towards USD 5 billion by 2028. The origin narrative is shifting from “Japan only” to “quality + scale + reliability,” giving suppliers who adapt first a competitive advantage.
By positioning both Japanese and Chinese matcha as part of your offering, you’re not just responding to a shortage - you’re leading a new sourcing era.
At Allreasons, we embrace this change.
That’s why we offer both Japanese and Chinese origin matchas, ensuring we can supply the full spectrum of quality, quantity, and price points our partners need. From small specialty cafés that demand Japanese leaves, to large-scale foodservice brands looking for consistency, speed, and volume - we make sure no business is left waiting for next spring’s harvest.
By maintaining dual-origin sourcing, we give our clients security, stability, and scalability - all while keeping flavour, colour, and performance uncompromised.
Get to know more about matcha offerings on our wholesale page.
End-User Perspective: What the Consumer Sees
The consumer may simply want a vibrant green latte, smooth flavor and consistent taste - not necessarily the origin label.
In the fast-paced environments where matcha drinks are served - coffee chains, quick-service cafés, vending kiosks - customers don’t ask where the powder comes from. They don’t see behind the counter, and they don’t read the origin label. It’s not deception; it’s just how the market works.
What truly matters is quality, consistency, and experience. And Chinese matcha delivers all three - that’s why even global names like McDonald’s and Starbucks use Chinese matcha across multiple markets.
Of course, specialty cafés that define themselves by craftsmanship and ceremonial quality will always choose Japanese matcha - and they should.
But for the vast majority of businesses focused on throughput, reliability, and customer satisfaction, the smart choice is sustainable sourcing, not a single origin.
And it’s worth remembering: matcha itself was born in China centuries ago before it was refined and popularised in Japan. The circle has simply come full - and smarter - again.
FAQ
Q: Is Chinese matcha really “as good” as Japanese matcha?
A: While traditional metrics (shade-growth, cultivar, ceremony origin) still favour Japanese, recent data show China’s large scale farms in Guizhou/Wuyi are reaching competitive quality thresholds for commercial use.
Q: Why is Japanese matcha so expensive in 2025?
A: Due to climate stress, lower yields, and skyrocketing global demand, tencha leaf auction prices in Kyoto reached unprecedented levels in early 2025.
Q: Should my café switch entirely to Chinese matcha?
A: Not necessarily. For strategic positioning you might keep a premium Japanese line while sourcing high-volume formats from China to balance cost and supply risk.
Sources & References
Reuters - Japan’s heat-stressed matcha tea output struggles to meet soaring global demand (July 2025)
https://www.reuters.com/business/japans-heat-stressed-matcha-tea-output-struggles-meet-soaring-global-demand-2025-07-04Financial Times - Japan buckles under matcha mania as global demand triples and harvests shrink (May 2025)
https://www.ft.com/content/be14c1f5-c6d4-4583-bf5b-c64d4d76a679Le Monde (English Edition) - Matcha’s popularity risks causing shortages (May 2025)
https://www.lemonde.fr/en/economy/article/2025/05/01/matcha-s-popularity-risks-causing-shortages_6740791_19.htmlTIME Magazine - We’re drinking so much matcha that supplies are running out (August 2025)
https://time.com/7305699/we-are-drinking-so-much-matcha-that-supplies-are-running-outFood Digital - How high temperatures have caused mass matcha supply issues (July 2025)
https://fooddigital.com/news/how-high-temperatures-have-caused-mass-matcha-supply-issuesPeople Magazine - A global matcha shortage is expected this spring (April 2025)
https://people.com/a-global-matcha-shortage-is-expected-this-spring-11705184Xinhua News (English) - China’s Guizhou expands matcha exports amid global demand (June 2025)
https://english.news.cn/20250603/76d98aae366946ba87f4ea9b5a6f1616/c.htmlChina Retail News - Rising demand and price for matcha tea challenge market stability (September 2025)
https://www.chinaretailnews.com/2025/09/17/11552-rising-demand-and-price-for-matcha-tea-challenge-market-stabilityOur China Story - Japan matcha is made in China’s Guizhou (March 2025)
https://www.ourchinastory.com/en/15129/Japan-matcha-is-made-in-China%27s-GuizhouNew York Times - The Matcha Market Cracks Under Pressure (October 2025)
https://www.nytimes.com/2025/10/14/dining/matcha.html
