In this era of rapid changes in the industry, we are grateful for everyone who continues to make time for Ippodo in their daily routines.
Today, we would like to inform you of how we are adapting to the developments in the industry to maintain the quality of all of our teas.
Background
There are a limited number of farmers and a limited number of fields producing tea in Japan. Expanding production is difficult because after planting a new tea tree, it takes over 5 years for it to grow before it can be harvested from. However, there is some flexibility for farmers: with a bit of planning, the same fields can produce matcha, gyokuro, sencha, or bancha, depending on the growing and processing methods used.
When matcha’s popularity began to grow rapidly in 2024, many farmers adapted by switching their production to matcha in the 2025 and 2026 seasons. Unfortunately, even with their efforts, there has still not been enough matcha produced to meet the new demand.
Predictably, prices for matcha increased dramatically in 2025, and again in 2026, after decades of relative stagnation.
Meanwhile, many farmers who had grown gyokuro, sencha, and bancha varieties switched to matcha, so production of these varieties decreased. The shift has hit bancha especially hard, since this variety has the lowest prices at market.
For these other types, a decrease in supply, with stable or increasing demand, has meant an increase in prices as well.
Rising Market Prices
After the big changes seen at tea markets in 2025, we were anxious to see what this year’s harvest would bring.
Now that markets have closed this year, we can see that 2026 was a continuation of 2025. The prices of matcha, gyokuro, sencha, and bancha material each increased greatly over last year.
You can see how the situation has changed in this chart of prices at one major market in Kyoto.
Our Commitment
At Ippodo, our blending and sourcing team works hard to provide the same consistent quality for each tea blend, no matter the state of the industry. This is our top priority. To do so, we actively source from the micro regions and farms, only in Japan, that can produce the material that fits the classic character of each blend. Beyond the cup, we work with producers so that the pricing is fair and sustainable for all parties.
To adapt to the industry changes, uphold our quality standards, ensure sustainable relationships with producers, and continue to provide joy for customers for years to come, we have made the difficult decision to raise prices on the portion of our offering that was immediately affected.
Details of the items affected will be shared in Price and Package Updates, Fall 2026 .
Outlook
It’s impossible for us to say what the future holds, as the state of the industry continues to change. We do expect that the new prices will become the new baseline for sustainable production for years to come.
However, we recognize the difficulty this brings for tea drinkers. These changes make it hard to continue to enjoy tea in all the beautiful ways and on all the beautiful occasions we have in the past.
Our promise is to keep the flavor and character of each of our teas as our top priority. Under the new prices, we will work harder than ever to make sure each item always provides greater delight than you expect. We ask for your continued patience and understanding as we navigate these changing times.
President Watanabe
Ippodo Tea Co.
