SME

By FedEx | June 4, 2025

A quiet revolution is underway in Japanese agriculture. From forestry to fishery production, food producers are shifting from a “product-out” approach to a “market-in” strategy, adapting to evolving consumer needs and preferences.

• From organic matcha to premium strawberries, Japanese food exports are creating major growth opportunities for Japan’s businesses.
• Japanese suppliers are developing products that strategically cater to the specific tastes of overseas consumers.
• As global e-commerce grows, Japan’s agriculture sector is benefiting from an expanding customer base and new opportunities.

Ever wondered how many matcha lattes are sold every day? Or how many kilos of sushi the world consumes each week? You might want to take the number in your head and triple it. Japan’s innovations in agriculture and food production are opening up new avenues for growth in global exports.

The Japanese government has set export value targets of two trillion yen by 2025 and five trillion yen by 2030. Along with these targets, there's growing interest among businesses in a ‘market-in’ strategy – a customer-focused business approach.

Domestic agriculture, along with segments of the forestry and fisheries industries, is being revitalized through this shift in approach. Instead of exporting products that were intended for domestic consumption, a new approach involves the specialized and continuous production of goods that meet the specific needs of target markets.

Items ranging from fresh produce to alcohol and cut flowers have been designated as priority export items with high international demand and value.

Japan’s top food exports

Against this backdrop, Japan’s food exports have been growing.

In 2024, Japanese agricultural, forestry, fishery and food exports exceeded 1.5 trillion yen for the first time, up 3.7% from 2023. The rising number of Japanese restaurants around the world is a major driver. And as more and more tourists visit Japan, a newfound love for Japanese food is influencing consumption habits at home.

One example is the growing popularity of Japanese-style curry in markets such as the US and South Korea. As a result, exports of mixed sauces and condiments have grown 15.9% year-on-year, grossing just under 63 billion yen.

Another popular export is Japanese beef, up 12.1% year-on-year to 64.8 billion yen. As the quality of wagyu beef becomes more widely known, Japan’s suppliers have strategically expanded distribution channels in key markets like the US, Taiwan, Southeast Asia, and Europe.

In Europe, there’s a growing interest in green tea, prized for its health properties. The category has grown by an astonishing 24.6% year-on-year, pulling in approximately 36.4 billion yen. Matcha, the powdered form of green tea, is also having a global moment, and is now a mainstream feature of lattes and desserts.

Asia is a particularly important trading partner for Japan. In 2024, nine of the top ten markets by export value were from the Asia-Pacific region, with Hong Kong and Taiwan ranking second and third. Exports to Vietnam experienced the most significant growth, surging 23.7% year-on-year to 82.6 billion yen.

Inspired by these successes, a growing number of farmers and food producers in Japan are embracing a market-in approach to expand their business abroad. Their experiences offer valuable insights for other Asian businesses looking to tap into the booming global food market.

How Japan’s rural farmers tap into global demand for organic green tea

The Kawane area in Shizuoka Prefecture is famous for its premium green tea. For generations, farmers in this mountainous region have carefully cultivated tea leaves renowned for their distinctive aroma and beautiful color. But with domestic demand for loose-leaf tea in decline, a resulting price drop posed a threat to the survival of the local tea trade.

In 2018, local tea farmers and merchants banded together to establish the Shizuoka Organic Matcha Alliance (SOMA). Adopting a market-in approach, farmers worked closely with merchants to align tea production with cross-border consumer demand.

Merchants, in turn, supported producers by buying tea at stable prices, keeping them up to date on consumer trends, and expanding sales channels. Today, overseas sales account for about 90% of SOMA’s profits.

With revenue growing, SOMA decided to double down on efforts to appeal to overseas markets. In 2020, SOMA built one of the largest processing plants for organic matcha in the country, equipped with a testing laboratory and tea leaf sterilization machine.

With matcha increasingly used as a food ingredient overseas, the company was now able to obtain international food safety certifications such as the FSSC 22000. SOMA is also considering kosher and halal certification to further broaden appeal.

How Japanese strawberry growers are overcoming market barriers

In December 2024, the Philippines lifted its ban on Japanese strawberries, signaling a significant expansion opportunity for Japanese producers. This is just one example of the growing Asian market for Japanese strawberries, a designated priority export item that has found remarkable success abroad.

Prized for their immaculate appearance and exceptionally sweet flavor, the export volume of Japanese strawberries grew 20-fold during the 10-year period between 2013 and 2023, with Hong Kong, Taiwan, and Singapore emerging as the largest markets.

However, navigating the global market comes with its own set of challenges. Some destinations pose unique hurdles for SMEs seeking new audiences. For instance, growers exporting strawberries to Taiwan are bound by strict regulations on pesticide residues.

Once harvested, the strawberries undergo rigorous testing to make sure they meet pesticide residue levels before being shipped. The associated costs and effort can be daunting for small producers with limited resources.

A group of farmers in Kumamoto Prefecture rose to the challenge, joining forces to develop a cultivation program specifically designed to meet the stringent standards required for Taiwanese import.

The group commissioned an agricultural supplies manufacturer to carry out regular greenhouse inspections to identify potential pests or diseases. The partnership helped farmers to reduce reliance on chemical pesticides and transition to alternative methods.

Meanwhile, another family-owned farm in Kumamoto Prefecture decided to market a unique offering: the rare Awayuki white strawberry. At first, it struggled to find buyers. The variety was largely unknown, and people often mistook the pale-colored berries for being underdeveloped.

Undeterred, the owner tirelessly sought new sales channels, eventually finding a trading company to export Awayuki strawberries to Hong Kong, where they are prized for their unique appearance and exceptional sweetness.

Understanding the importance of protecting the delicate produce during transportation, they introduced shock-absorbent packing materials, ensuring that the strawberries arrive in pristine condition.

This dedication to quality and innovation paid off. Today, the farm exports strawberries to a growing number of markets, where they sell for more than double the price of regular berries. About 30% of its total sales come from overseas, with key markets including Thailand, Malaysia, Singapore, and the UAE.

As global demand for food exports continues to grow, market-in strategies are now a popular choice for Japanese SMEs. As well as reaching new audiences abroad, they can play a vital role in revitalizing local farming and food production industries.