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The average retail price of green tea in Japan amounted to around *** Japanese yen per 100 gram in 2024. While the domestic market is segmented into a range of tea types, green teas are considered the traditional variation also known as “Japanese tea”. The type of green tea and the harvest season heavily influence retail prices, which in turn are dependent on the growing and production methods.

The price of a green leaf

Green tea in Japan is commonly produced by steaming, rolling, and drying leaves of tea shrubs into crude tea ("aracha"), without letting them wither and oxidize like in the production of black teas. The type of green tea of a harvest is already determined during the cultivation process, as the leaves of higher-graded teas are shaded before plucking. "Gyokuro" tea, one of the most expensive green teas produced in Japan, is grown under straw mats for several weeks before processing, which influences the refined products’ flavor profile. Due to the scarcity of arable land in Japan, domestic green tea production centers on premium products like gyokuro and "tencha". Lower-graded tea procured through imports is processed in the food and beverage manufacturing industries.

The pillar of the tea market

Green tea stands at the center of the Japanese tea market, sold as loose leaves, tea bags, and ready-to-drink (RTD) products. While steeping loose leaves used to be the main preparation method in Japanese households, consumers purchased loose leaves less and less. Instead, bottled RTD drinks have become a convenient refresher not only for out-of-home consumption but also for staying hydrated at home. Widely available as straight, sweetened, and blended teas, RTD products cater to a busy lifestyle and consumers’ preferences, encroaching on the success of the loose-leave segment.