STiR coffee and tea magazine

STiR coffee and tea 15 Enjoy with confidence Vertrauen in Genuss Enjoy with confidence Vertrauen in Genuss YOUR EXPERT for high quality leaf tea High level of product security Extensive stock availability of a wide range of teas Organic and sustainable certified teas www.wollenhaupt.com Surging Japanese Tea Exports Face Tariff Speed Bump A century ago, half of the tea exported from Japan was sent to American homes and restaurants, imported under familiar brand names like Folger's Green Tea in vacuum tins. Demand plummeted in the decade leading up to World War II and per- sisted through 1950 due to anti-Japanese sentiment and geopo- litical factors that resulted in steep tariffs starting in 1930. During the pandemic years, Japanese green tea once again became a popular choice among American buyers, who pur- chased half of the tea exported by Japan in 2021 and the ma- jority of tea by value every year since. In 2024, Japan's average unit price of $27.30 per kilogram was the highest among the 15 countries exporting high-value tea. In July, the United States and Japan reached a trade agree- ment lowering tariffs on Japanese imports to 15%. Buyers who rushed to secure tea before the tariffs were enforced must now wait and see, as transit takes 30 to 45 days. Tea at sea is subject to high tariffs upon entry at the port; the risk for buy- ers shipping tea from Japan is significant. "There are no immediate, easy options," says QTrade Teas & Botanicals CEO Manjiv Jayakumar. The Houston-based tea blender advises clients to remain open-minded when consider- ing multi-origin blends, given the risks associated with tariffs. With steadily increasing tea exports, Japan now ranks as one of the highest-value tea exporters in the world. Photo credit: Tealet Japan is the world's sixth-largest tea exporter by value, generating $242.5 million in sales in 2024. Record sales marked a decade of growth that began in 2005, when tea exports rose from ¥2.1 billion ($14.2 million) to ¥6.6 billion ($44.7 million) in 2014, a period when domestic consumption declined. Japan currently accounts for 3.2% of the world's tea exports by value and was the second-fastest-growing tea exporter from 2023 to 2024, with a growth rate of 15.1%, just behind India at 15.5%. Americans Once Favored Green Tea Over Black Between 1880 and 1930, Japan exported approximately 500,000 metric tons of green tea to the United States. Annual tea exports averaged between 18,000 and 20,000 metric tons during the 1920s, making up more than 90% of US's tea imports by vol- ume. The surge began in 1880 when importers spent the equiva- lent of $37 million (in 2024 dollars) importing 1,800 metric tons of pan-fired sencha-style tea. Imports rose to $223 million (in 2024 dollars) for a peak of 16,500 metric tons in 1920. Sales soon dropped sharply due to the imposition of high duties in 1930 under the Smoot-Hawley Tariff Act, which dev- astated the tea trade for decades, redirecting Japanese tea to Tai- wan and Korea, and in Europe, to France and Germany. Ameri- can hot tea drinkers shifted to Ceylon and Indian black teas. The US primarily purchased low-priced bulk Japanese sencha, which steadily regained market share by volume as a blending tea. However, it would take another 50 years before matcha outpaced traditional Japanese sencha and bancha, growing at a compound annual rate of 20% from 2015 to 2022 (see Global Matcha Phenomenon Transforms Beverage Landscapes p38). In recent years, premium matcha has accounted for 35-40% of Japan's US sales by value. Globally, production is estimated at 8,100 metric tons valued at ¥24.5 billion (about $160 million). Sencha accounts for 50% of Japanese exports by volume. Rising alternatives include hōjicha, a roasted green tea known for its toasty aroma, low caffeine content, and smooth taste. Traditionally consumed as an everyday household tea, hōjicha is now a rising star, accounting for 10% of exports and selling for $15 to $40 per kilo. By Dan Bolton Tea Report

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