War Effects Hit Japan's Matcha Industry, Exports Rise but Expansion Stalls

The impact of the conflict in the Middle East is beginning to spill over into Japan’s tea industry, particularly matcha products. Although global demand remains high and exports continue to increase, business operators are facing obstacles in business expansion and energy supplies.

One direct impact is the postponement of plans to expand matcha shops or cafes in the Middle East region. Nevertheless, from a production perspective, there has been no disruption to raw material procurement.

Amid these challenges, export performance is showing a strong trend. Throughout 2025, the value of Japanese green tea exports, including matcha, reached ¥72.1 billion, equivalent to Rp7.71 trillion assuming an exchange rate of Rp107 per yen. This figure records the highest annual growth compared to other agricultural, forestry, and fishery commodities.

This increase reflects the high interest from global markets in matcha products. The continuously rising demand presents a significant opportunity for Japan to expand its international market share.

However, behind this opportunity, industry players are beginning to face new concerns regarding energy supplies. Tensions in the Middle East have the potential to disrupt the distribution of fuel oil, which is essential in the tea production process.

During the April to June period, producers require large amounts of fuel, particularly for drying tea leaves after harvest. Disruptions in this supply can directly affect production and tea quality.

Japan’s Agriculture Minister, Norikazu Suzuki, emphasised the importance of maintaining energy supply stability to support the industry’s sustainability. “It is important to create a situation where sufficient fuel oil supplies can be met,” he stated, as quoted from The Jalan Times on Monday, 13 April 2026.

Looking ahead, Japan’s tea industry faces two challenges simultaneously: maintaining the upward momentum in exports and ensuring smooth production amid risks of energy supply disruptions.

If the conflict persists, pressure on business expansion and operations is expected to intensify, although global demand for matcha remains strong.