Japan Green Tea Market

Japan Green Tea Market Size and Share:

The Japan green tea market size was valued at 85.68 Thousand Tons in 2024. Looking forward, IMARC Group estimates the market to reach 126.23 Thousand Tons by 2033, exhibiting a CAGR of 4.10% from 2025-2033. The market is driven by growing health awareness, increasing demand for authentic Japanese teas, rising popularity of traditional tea ceremonies, innovations in ready-to-drink and flavored green tea products, sustainability-focused farming practices, and government support for exports.

The Japan green tea market demand is driven by the rising health consciousness, with consumers seeking beverages rich in antioxidants and associated with improved well-being. According to studies, the health benefits of consuming three to five cups (24 to 40 ounces) of green tea daily enhance its appeal as a healthy beverage option. In addition, the growing popularity of matcha, known for its versatility in beverages and desserts, is acting as another growth-inducing factor. Moreover, traditional tea ceremonies continue to sustain interest in premium green tea, reflecting cultural significance and impelling the market demand. Besides this, innovative ready-to-drink (RTD) options and flavored teas attract younger demographics, providing an impetus to the market. Also, increasing government initiatives promoting agricultural sustainability enhance production and international competitiveness, thus catalyzing the market growth.

Concurrently, rapid urbanization and busy lifestyles are driving the Japan green tea market growth, including convenient green tea formats, such as single-serve sachets and bottled teas. In line with this, the rising interest in functional beverages promotes green tea due to its natural health benefits, including metabolism-boosting and stress-relieving properties, contributing to the market expansion. For example, consuming more than 13 cups of tea per day (across all types) could potentially increase the risk of Alzheimer’s disease. However, clinical evidence on the precise impact of green tea on the human brain remains limited, highlighting the need for further research in this area. Moreover, the premiumization trend drives the market growth for high-quality, hand-picked teas, appealing to niche, affluent consumers. Additionally, the growing demand for organic products is strengthening the Japan green tea market share for sustainably farmed Japanese teas. Apart from these, the rise of e-commerce allows producers to reach international markets effectively, enhancing accessibility and sales, thereby propelling the market forward.

Japan Green Tea Market Trends:

Increased Popularity of Matcha

The consumption rate of matcha, a finely powdered green tea, is enhancing the green tea market outlook in Japan, due to its health benefits and its uses in culinary practices. Matcha’s antioxidant and natural caffeine benefits are some of the ways that appeal to the modern world’s healthy lifestyle. Apart from its original function, it is added to lattes, desserts, and creams, which expand its popularity among various segments. The bright green color and the connection to the historic culture of Japan add value to Matcha. For example, in Japan, 72.3% of people consume green tea daily, and 89.6% drink it more than once a week. Interestingly, the preference for green tea increases with age, with older individuals showing a higher tendency to enjoy it regularly. This trend is also accompanied by advertising by celebrities and posting on social networks, which makes it one of the leaders in the segment of premium tea and wellness, thus impelling the market growth.

Growth in Ready-to-Drink (RTD) Green Tea Products

The growth of Ready-to-drink (RTD) green tea products is transforming the Japan green tea market trends, primarily due to their convenience and suitability for modern, on-the-go lifestyles.  This is particularly apparent amongst the young population in their pursuit of healthy drinks that are easy to consume. For instance, green tea contains polyphenol antioxidants, including a catechin called epigallocatechin-3-gallate (EGCG), which may offer various health benefits, further enhancing its appeal as a functional beverage. Besides this, a consumer can easily differentiate between new graphical styles or new flavors such as vitamins added or low-sugar products. The RTD green tea consumption is further supported by vending machines, convenience stores, and supermarkets in Japan and export markets. This segment also benefits from new packaging where the needs for food preservation are met and the shelf life is enhanced, fostering the market demand.

Rising Demand for Organic and Sustainable Green Tea

The shift toward organic and sustainable products is having a significant impact on the Japan green tea industry. Many consumers are adopting natural teas grown without the use of synthetic chemicals to meet environmental and health worries. Japanese tea growers are embracing sustainable agriculture practices, including minimum pesticide, and energy-efficient production facilities. Moreover, organic, and fair-trade labels among others are important certification programs that assist in creating confidence in consumers most especially in export markets. For example, the Ministry of Agriculture, Forestry and Fisheries (MAFF) introduced a system of marking greenhouse gas (GHG) reduction for 23 domestic agricultural products such as green tea. This is known as a ‘voluntary’ label which enables producers can distinguish sustainable practices linked to reduced emissions of GHG. This trend is further supported by the government's promotion of sustainable agriculture to produce environmentally friendly agricultural products, making Japan one of the major suppliers of environmentally friendly tea products, and providing an impetus to the market.

Japan Green Tea Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Japan green tea market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type, flavor, and distribution channel.

Analysis by Type:

• Green Tea Bags
• Green Tea Instant Mixes
• Iced Green Tea
• Loose Leaf
• Capsules
• Others

Green tea bags are popular for their convenience and ease of preparation, catering to busy consumers. Their single-serve format minimizes waste, while innovative packaging preserves freshness, making them a preferred choice in households and workplaces, thus aiding the market growth.

Instant green tea mixes appeal to those seeking quick and effortless preparation. They are available in powdered or granulated forms and are perfect for busy consumers, while flavors or functional additions significantly enhance the market outlook.

Iced green tea is favored for its refreshing qualities and health benefits, especially during warmer months. They are packaged in RTD formats, which target younger consumers and align with the growing trend of functional, low-calorie beverages, fueling the market demand.

Loose-leaf green tea caters to premium and traditional tea markets, offering superior taste and aroma. This tea is favored by passionate who opt for high-quality products and want to experience great taste. It has continuously been inherent in the production and presentation of Japanese green teas to penetrate gourmet markets, which is bolstering the market share.

Green tea capsules are marketed for their concentrated health benefits and attract health-conscious consumers and supplement users. They are convenient for daily consumption and are positioned as functional products, which are gaining popularity in the wellness and nutraceutical industries and fostering the market growth.

Analysis by Flavor:

• Lemon
• Aloe Vera
• Cinnamon
• Vanilla
• Wild Berry
• Jasmine
• Basil
• Others

Lemon-flavored green tea has a tart taste that is perfect for a warm day, with added Vitamin C and antioxidants. This tea is appealing to the younger and health-conscious demographic, as it delivers a good sharp citrusy flavor while still being good for you and can be consumed hot or iced, impelling the market growth.

Aloe vera-flavored green tea blends hydration and wellness benefits, attracting consumers seeking skin health and digestion support. This unique combination broadens the market for green tea by appealing to those looking for functional, plant-based beverage options, thereby propelling the market forward.

Cinnamon-flavored green tea provides a warm, spiced aroma with metabolism-boosting properties. This targets the herbal blend consumers as it has a warm comfortable feel for cold seasons and is lower in sugar than some spiced takeouts and tea drinks, contributing to the market expansion.

Vanilla-flavored green tea delivers a smooth, creamy taste, appealing to those seeking a subtle sweetness. This flavor is particularly popular in premium and dessert-inspired tea products, enhancing the overall sensory experience and catering to indulgent preferences, thus catalyzing the market growth.

Wild berry flavored green tea is fruity and different from traditional green tea which is meant to reach the younger population and people who desire a switch. Its antioxidant level is relatively high, making it ideal to use in iced teas and other types of consumption without fussiness and providing an impetus to the market growth.

Jasmine-flavored green tea combines floral elegance with a calming aroma, making it a popular choice for relaxation and premium tea experiences. Its traditional appeal and soothing qualities significantly strengthen its position in both domestic and international markets.

Basil-flavored green tea blends herbal freshness with wellness properties, appealing to consumers seeking detoxifying and anti-inflammatory benefits. This unique flavor resonates with those looking for innovative, plant-based tea options with a hint of savory complexity, aiding the market growth.

Analysis by Distribution Channel:

• Supermarkets and Hypermarkets
• Specialty Stores
• Convenience Stores
• Online Stores
• Others

Supermarket and hypermarket groups are the widespread consumers of green tea with various brands and flavors available to the market. They are easily accessible with frequent offers that appeal to the price-sensitive consumer to make them their go-to stores for their day-to-day requirements, driving the market forward.

Specialty stores are vital in offering high-quality tea to consumers who are interested in premium green tea. Some of the products they stock range from loose-leaf teas and exotic blends, which are suitable for those customers who want to be treated to selective shopping, thus supporting the market growth.

Convenience stores are key channels for RTD green tea products, serving on-the-go consumers. This is because they are found easily in urban areas hence guaranteeing a constant market for the single serving green tea and bottled green tea, which is strengthening the market share.

Online stores are expanding rapidly, providing consumers with convenience, a wide variety of options, and access to numerous brands. Services such as subscription services, direct-to-consumer services, and detailed product descriptions which they offer make them suitable for purchasing green tea products, boosting the market demand.

Regional Analysis:

• Kanto Region
• Kansai/Kinki Region
• Central/ Chubu Region
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region

The Kanto region, including Tokyo, drives the demand for green tea due to its large population and high level of urbanization. In addition, the high disposable incomes and busy lifestyles fuel sales of premium and RTD green tea products in supermarkets, convenience stores, and online platforms, significantly contributing to the market expansion.

The Kansai/Kinki region, home to Kyoto and Osaka, has a strong tea culture and demand for high-quality green tea. Concurrently, the probability of consuming brewed loose tea and the influence of social activities such as performing conventional tea ceremonies are propelling the market forward.

The Central/Chubu region, including Shizuoka, is Japan's largest green tea producer. In confluence with this, the strong agricultural production and export initiatives of the region support both domestic sales of premium teas and international demand for Japanese green tea, fueling the market growth.

The Kyushu-Okinawa region specializes in organic and specialty teas including the Yamecha. Trade liberalization in China has improved the demand since it boosts tourism and export-oriented farming hence, local production favors sustainability and high-quality produce in the export and domestic markets, thus strengthening the market share.

The Tohoku region is witnessing a growing demand for functional and health-oriented green tea products, driven by aging demographics. Furthermore, the region benefits from the increasing popularity of green tea as a wellness beverage in rural and urban settings, which is impelling the market growth.

The Chugoku region, known for Hiroshima tea, emphasizes sustainable farming practices. Additionally, the market here thrives on local production, catering to eco-conscious consumers and leveraging regional tourism to boost the appeal of traditional green tea, thus supporting the market demand.

Hokkaido’s cold climate encourages the consumption of warm beverages, boosting demand for green tea. In line with this, the demand in the region for familiar and utilitarian teas matches more recent trends, and tourism strengthens the appeal of better Japanese tea items, providing an impetus to the market.

The Shikoku region, with its emphasis on organic farming, is experiencing a robust demand for green tea among eco-conscious consumers. Apart from this, the region’s small-scale, high-quality production caters to niche markets, including exports, while tourism helps promote local specialty teas, thereby fueling the market demand.

Competitive Landscape:

The Japan green tea market is highly competitive, driven by diverse offerings across premium, functional, and ready-to-drink (RTD) categories. Established players focus on innovation, including unique flavors and sustainable packaging, to maintain market presence. Besides this, smaller producers target niche segments, such as organic and artisanal teas, emphasizing quality and traditional methods to attract discerning consumers. Moreover, the rising demand for Japanese green tea intensifies competition, particularly in export markets, where authenticity and quality play crucial roles. Furthermore, the growing prominence of e-commerce enables broader market access, allowing both established and emerging brands to reach international audiences effectively.

The report provides a comprehensive analysis of the competitive landscape in the Japan green tea market with detailed profiles of all major companies.

Latest News and Developments:

• In October 2024, Zeenat Aman launched ILEM JAPAN's authentic Japanese tea collection, celebrating traditional tea culture with premium blends. The event showcased the blend of heritage and luxury, catering to global tea enthusiasts.
• In July 2024, Ito En announced the launch of "Oi Ocha" in India, recognizing significant market potential. The company appointed La Ditta Singapore Pte Ltd as its exclusive marketing and distribution partner in April 2024, with plans to launch within the year.
• In May 2024, Ito En, producer of the Oi Ocha brand, signed a global endorsement agreement with baseball superstar Shohei Ohtani. This partnership aims to promote Japanese green tea culture worldwide.
• In April 2024, Ito En announced a global partnership with baseball star Shohei Ohtani to promote its flagship brand, "Oi Ocha," aiming to enhance brand recognition worldwide.

Japan Green Tea Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Japan green tea market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Japan green tea market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Japan green tea industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.