Tea market in Japan - statistics & facts
Tea is a beloved non-alcoholic beverage in Japan, which is consumed throughout the day to stay hydrated. Infusions using loose tea leaves represent the most common varieties in the consumer market, whereas herbal teas include roasted barley tea (mugi-cha) and blends containing rice, floral parts, and spices. Fresh brews using dried tea leaves is the traditional method of preparing tea, but instant products and ready-to-drink beverages have changed the tea culture in Japan. RTD tea drinks are the leading segment in the soft drink market and make the beverage readily available for consumption on the go.
Domestically produced tea leaves are mainly processed into green tea and graded according to growing and processing methods, as well as the timing of harvest. Classic green tea leaves, known as sencha, are the most produced green tea type in Japan and are harvested throughout the year. On the other hand, the young leaves at the tip of tea shrubs, which had been shaded for around three weeks before plucking, are processed into the highest grade of green tea known as gyokuro and tencha. The latter is most known in its grounded form as matcha and used in Japanese tea ceremonies, while low-grade powder is deemed for culinary uses only and processed in the food manufacturing industry.
Besides their popularity as a hot or cold beverage, tea has become a standard flavor in food trends. Matcha and black tea are consumer favorites in various desserts such as ice cream, pastries, and chocolate. While the bubble tea boom has calmed down recently, food companies are already exploring new trends to combine with the traditional flavor.
Tea production in Japan
The Japanese tea industry is internationally associated with high-quality matcha, with Kagoshima Prefecture and Kyoto’s Uji city being famous producing areas. Oxidized teas, like black or oolong tea, and tea blends are produced in small quantities, but black tea imports are required to cover the demand in beverage manufacturing.Domestically produced tea leaves are mainly processed into green tea and graded according to growing and processing methods, as well as the timing of harvest. Classic green tea leaves, known as sencha, are the most produced green tea type in Japan and are harvested throughout the year. On the other hand, the young leaves at the tip of tea shrubs, which had been shaded for around three weeks before plucking, are processed into the highest grade of green tea known as gyokuro and tencha. The latter is most known in its grounded form as matcha and used in Japanese tea ceremonies, while low-grade powder is deemed for culinary uses only and processed in the food manufacturing industry.
RTD revolution of Japanese tea culture
Japanese tea culture is traditionally tied to matcha infusions prepared at tea ceremonies. However, the introduction of bottled RTD tea in the 1990s changed the industry and consumer habits. The spread of the standard 500-ml bottles made tea drinks a popular refresher on the go, with annual per person consumption of RTD green tea reaching almost 24 liters. To cater to different target groups, beverage manufacturers broadened their product mix to include straight, flavored, sweetened, and mixed tea drinks. Additionally, seasonal and limited products complement the assortment and make consumers come back for more, resulting in over 300 new RTD products launched annually in Japan's soft drink market.Besides their popularity as a hot or cold beverage, tea has become a standard flavor in food trends. Matcha and black tea are consumer favorites in various desserts such as ice cream, pastries, and chocolate. While the bubble tea boom has calmed down recently, food companies are already exploring new trends to combine with the traditional flavor.
