China has become the world's largest producer of matcha, accounting for approximately 70 percent [1] of global production.

This shift marks a significant disruption in a market historically dominated by Japanese tea traditions. The surge in Chinese production threatens the prestige of regional Japanese brands and introduces widespread authenticity issues in the global supply chain.

Production in China was projected to exceed 12,000 tons [1] by 2025. This growth is centered in Guizhou province, specifically within Tongren city, which now hosts the world's largest matcha factory [2]. The expansion is driven by rising global demand and aggressive increases in cultivation and processing capabilities [3].

Financial data reflects this rapid scaling. Exports of Chinese matcha have seen a 700 percent increase [4]. Furthermore, the export value of matcha-related products reached 721 billion yen [5] in 2025.

Despite the industrial success, the rise in output has coincided with a surge in fraudulent labeling. Chinese firms are selling counterfeit products labeled as “Uji” matcha [6]. Uji, a region in Japan, is world-renowned for high-quality tea, and the use of its name on Chinese-produced goods is an attempt to capitalize on that established reputation [3].

Industry observers said the popularity of authentic Uji matcha created a lucrative market for these imitations. This trend persists as Chinese producers scale their operations to meet international demand while bypassing the rigorous certification required for genuine Japanese regional labeling [3].

“China has become the world's largest producer of matcha, accounting for approximately 70 percent of global production.”

The industrialization of matcha in China represents a transition from a boutique, craft-oriented Japanese product to a global commodity. While China's capacity to produce 12,000 tons of powder allows for lower prices and higher availability, the proliferation of counterfeit 'Uji' labels suggests a tension between mass-market scaling and the preservation of geographic indications. This may lead to stricter import regulations and a greater emphasis on certification for consumers seeking authentic Japanese tea.