Key Facts
• In 2025 (Jan–Jul), 11 tea industry bankruptcies and closures were recorded.
• This surpasses the previous record of 10 cases in 2024.
• 51.2% of tea companies reported profit growth in 2024, the highest in 20 years.
• Over 40% of companies faced declining profits (18.3%) or losses (29.3%).
• Matcha demand surged globally, driving up tea leaf prices and operational costs.
• Companies with integrated production saw significant revenue growth.
• Firms reliant on external tea leaf sourcing faced rising costs and declining profits.
• Younger generations’ declining interest in traditional Japanese tea worsened the situation.
• Export-focused companies fared better than those reliant on domestic demand.
• The study covered data from 2000 to July 2025, focusing on legal bankruptcies (debt ≥ ¥10 million).
Summary
The global matcha boom has led to record-high bankruptcies and closures in Japan’s tea industry, with 11 cases reported in the first seven months of 2025. While 51.2% of companies achieved profit growth in 2024, over 40% faced declining profits or losses, highlighting a growing polarization. Companies with integrated production thrived by shifting to matcha production, while others struggled with rising tea leaf and energy costs. Younger generations’ declining interest in traditional tea and weak export demand further exacerbated challenges for some firms. The study underscores the widening gap between companies with high-value production capabilities and those unable to adapt to changing market demands.
