Wasabia japonica is a member of the Brassicaceae mustard family. Wasabia is native to Japan and Sakhalin Island, to the north of Japan, and has historically been farmed for a variety of flavors. Wasabi is commonly known outside of Japan as the spicy green paste served with sushi. The inclusion of hot and spicy spices in Western cuisine has prompted food and beverage makers to create wasabi-containing products. Lighter mayonnaise and sauces, including wasabi, are becoming more popular as flavor and scent improve. Wasabi's distinct flavor is generated from isothiocyanate, a sulfur compound (ITC). ITC is generated from the precursor glucosinolate (GSL) when plant tissue is injured. ITC from Wasabi aids in the treatment of inflammatory illnesses such as anaphylaxis and asthma. Some studies suggest that wasabi might have antimicrobial, antibacterial, antiparasitic, and antiviral properties as well.
The wasabi market is segmented by type, packaging type, distribution channel, and application. On the basis of type, the market is sub-segmented into powder, paste, and sauces, among others. On the basis of packaging type, it is sub-segmented into bottles, tubes, pouches, sachets, and others. On the basis of distribution channel, it is sub-segmented into store-based and non-store-based. Further, on the basis of application, the market is sub-segmented into food and beverages and nutraceuticals.
Industry Demand
According to OMR Research, the global wasabi market is expected to grow at a CAGR of 10.2% during the forecast period (2023–2029). The expansion of Japanese cuisine restaurants is expected to drive Wasabi demand across the globe. According to Japan's Ministry of Agriculture and Fisheries, the number of restaurants serving Japanese food in other countries increased by roughly 30% between 2018 and 2020. Additionally, since wasabi aids in the treatment of asthma and other inflammatory diseases, it is becoming another major factor in the market’s growth. According to the Asthma and Allergy Foundation of America, asthma affects around 25 million individuals in the US alone. Thus, the rising incidence of asthma and other allergy disorders, together with increased knowledge about the advantages of wasabi as a natural therapy, are expected to fuel the growth of the worldwide wasabi market over the forecast period.
Key Trends in the Market
Nowadays, the population is inclined towards a healthy diet, and clean label and vegan product preferences result in increased sales of plant-based dips, creamers, snacks, spreads, cheese, sauces, and other foods and drinks. Additionally, increased spending on functional and healthy meals that aid the immune system is boosting the wasabi market’s growth. For instance, even with inflation, 84% of customers prioritize health and wellbeing when purchasing fresh food, according to Deloitte Insights. Furthermore, 55% of customers are willing to pay a higher price for nutritious meals since they improve their health and well-being. In Europe, the number of healthy product releases surged by 149% in 2021.
Moreover, after the spread of COVID-19, shoppers' preferences for reading labels, understanding what components are in their goods, where their foods originate from, and which foods they should avoid have shifted. According to the International Food Information Council’s 2020 Food & Health Survey findings, 54% of all customers and 63% of those aged 50 and older are more concerned about the healthfulness of their food and beverage selections in 2020 than they were in 2010.
Market Restraints
According to experts, global warming is impacting wasabi output not just by increasing the number and severity of storms but also by raising temperatures, which jeopardize plant development in water that has to be a steady 10 to 15 degrees Celsius (50 to 59 degrees Fahrenheit) all year. For instance, typhoon Hagibi, which hit eastern Japan in 2019, reduced productivity in Okutama by roughly 70% the following year. Farms in the area have taken nearly three years to recover due to the requirement for replanting and cautious maintenance. Additionally, wasabi growers confront more than just the weather. The rate of urbanization is increasing, and the aging of rural populations implies that there are no successors. According to Japan's Ministry of Agriculture, the output of wasabi produced in clear-flowing water, such as at Hoshina's farm, has decreased to half that of 2005. Such factors are affecting the wasabi market across the globe, as well as increasing wasabi’s cost even more, resulting in a major market restraint.
Recent Developments
The market players, such as TasFoods Ltd., Beaverton Foods, Inc., Clearspring Ltd., Kinjirushi Co., Ltd., Eden Foods Inc., Oregon Coast Wasabi Inc., Mountain View Wasabi Inc., S&B Foods, and others, are assisting in the market’s growth through various mergers and acquisitions, new product developments, investments, and market expansion activities. Some of the recent developments in the market include:
• In June 2022, Shima Wasabi, a commercial wasabi farm in Tasmania, updated its web store to showcase the benefits of authentic wasabi. The redesigned e-store will sell fresh wasabi stems and leaves, as well as paste and powder jars. According to the company, its goods are sought after by chefs, mixologists, restaurants, and distilleries throughout Australia.
• In July 2022, The Good Bean, a maker of chickpea snacks in the US, announced the release of a range of Black Edamame snacking beans. Thai Chili & Lime Leaf, Wasabi, and Sea Salt are the three flavors of Black Edamame. The plant-based snack has 11 g of protein and 4 g of net carbohydrates per serving and is all-natural, gluten-free, and non-GMO.