Matcha Prices Set to Double--And One Japanese Stock Could Benefit Big
Warning! GuruFocus has detected 1 Warning Sign with ITONF.
That imbalance is showing up in the numbers. In 2024, Japan's green tea exports hit a record 36.4 billion ($244 million), marking a 25% jump from the previous year, according to the Ministry of Agriculture. Matcha is leading the charge, thanks to its rising popularity in wellness circles and specialty cafes worldwide. For investors, that trend could translate into sustained pricing power and premium brand tailwinds for Ito Enespecially as global consumers snap up ceremonial-grade products that are becoming harder to source.
But the real bottleneck might not be in the marketit's on the farms. Ito En points to an aging farmer population and lack of generational handover as key headwinds. The average age of farmers in Japan reached 69.2 this year, making long-term supply growth a serious question mark. As output tightens and costs rise, Ito En's pricing moves may not just reflect opportunismbut necessity. That could make the stock a unique inflation hedge in a niche category with both scarcity value and global cultural momentum.
This article first appeared on GuruFocus.
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