News article
Matcha Boom Hurts Ito En: Leaf Costs Soar Tenfold, but Price Hikes Lag
Ito En, Japan's largest green-tea beverage maker with over 30% domestic market share, posted a 70%-plus drop in net profit for the fiscal year ending April 2026, citing matcha leaf cost inflation and impairment losses. Tea-leaf prices have risen tenfold in a decade; supply shortages emerged last summer, yet the company has not fully passed costs to consumers, straining margins despite global matcha demand.
伊藤園を悩ます抹茶ブーム 茶葉高騰でも値上げ進まず、株価も渋く - 日本経済新聞
Key points
- Ito En net profit down 70%+ in FY2026 due to matcha leaf costs and impairment charges.
- Tea-leaf prices reached 10× levels from a decade ago; supply shortages began summer 2025.
- Market leader unable to absorb cost pressures through retail price increases.
- Global matcha boom driving raw-material inflation, squeezing even major manufacturers.
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About this article
The numbers
Tea-leaf price increase vs. decade ago: 10× increase
What they said
“"Something felt wrong." The anomaly was noticed last summer. Tea-leaf shortages began disrupting procurement.”
「なんかおかしい」。異変に気付いたのは昨夏だった。茶葉が足らず仕入れに支障が出始めていた。
“Tea-leaf prices had reached 10 times their level from a decade ago.”
茶葉の価格は10年前の10倍に達していた。
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