Tea in Japan in 2026 is set to experienced a markedly sharp decline in retail volumes, with a drop of 10% to 83,691 tonnes, driven by cost-of-living pressures, muted disposable income growth, and changing consumption habits. The appeal of traditional loose-leaf tea has declined, as convenience, value, and health-consciousness have become central to purchasing decisions, leading to a shift towards tea bags, cold brew, and other easy-to-prepare options. Value growth is marginal at just 1% despite rising prices due to ongoing structural challenges such as labour shortages, weather-related supply issues, and persistent inflation. The prospects for volume recovery remain limited, making tea less attractive for immediate expansion but offering selective opportunities for brands able to innovate around convenience, health, and value. To succeed, companies must adapt by prioritising product development in cold brew and functional teas, strengthening brand equity to maintain loyalty in a cost-sensitive environment, leveraging e-commerce to meet demand for price transparency and bulk buying, and refining pricing and pack size strategies to align with evolving consumer expectations.
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Overview:
Understand the latest market trends and future growth opportunities for the Tea industry in Japan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Tea industry in Japan, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Tea in Japan report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Tea in Japan?
- To what extent are health considerations impacting consumption of Tea in Japan?
- What are the traditional preferences in Tea in Japan? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Tea in Japan?
- Which are the leading brands in Tea in Japan?
- How are products distributed in Tea in Japan?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Where is future growth expected to be most dynamic?
Key Data Insights
Key Industry Trends
Volume decline as the population falls and consumption patterns change, driving sales of larger packs
Consumers abandon kyusu brewing as bagged and cold tea formats gain
Chart 1 Value Sales 2021-2031
Chart 2 Volume Sales 2021-2031
Chart 3 Value Sales by Category 2026
Loose tea expected to lose younger consumers
Green tea to remain the largest in value despite ongoing decline, while fruit/herbal options favoured
Health, convenience and climate change to reshape product development and retail channels
Chart 1 Forecast Value Sales 2021-2031
Chart 2 Forecast Value Sales by Category 2026-2031
ITO EN Ltd leverages brand equity as cost pressures grow
Chart 1 Company Shares 2026
Chart 2 Brand Shares 2026
Supermarkets retains lead while retail e-commerce benefits from online migration
Online price comparison and promotions drive sustained channel shift
Chart 1 Retail Channels 2021-2026
From seasonal novelty to everyday staple
Value formats and the economics of home preparation
Structural pressures shaping product strategy
Chart 1 Real GDP Growth 2021-2031
Chart 2 Inflation 2021-2031
Chart 1 Population 2021-2031
Chart 2 Population by Generation 2026
Chart 3 Consumer Expenditure 2021-2031
Country Reports Disclaimer
The following categories and subcategories are included:
Tea
-
- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
Tea
This is the aggregation of Black Tea, Fruit/Herbal Tea, Green Tea, Instant Tea, and Other Tea.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Tea research and analysis database.
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