This report provides a multi-faceted analysis of the global and domestic wasabi markets, with a detailed comparison of the two main segments: “Hon-Wasabi” and “Western Wasabi.” The analysis reveals that the global wasabi market is on a solid growth trajectory, driven by the worldwide popularization of Japanese cuisine and increasing health consciousness. The robustness of this trend is underscored by data from multiple market research firms, which project a high Compound Annual Growth Rate (CAGR) of over 8% during the forecast period.
However, this market growth is primarily fueled by the processed wasabi market, which relies on the more affordable and consistently available Western wasabi as its raw material. In contrast, traditional Japanese Hon-Wasabi production faces structural challenges such as a lack of successors and climate change, leading to a long-term decline in production volume. This fact indicates that the market has a clearly divided bipolar structure: one for “Hon-Wasabi” as a rare, high-end ingredient, and the other for “Western Wasabi” as the main raw material for mass-produced processed goods.
In the consumer market, while low price is the primary driver for purchase, consumers are also drawn to the unique flavor and brand value of “Hon-Wasabi”. To meet this demand, major manufacturers are focusing on products labeled “containing Hon-Wasabi,” which are based on Western wasabi with a small amount of Hon-Wasabi blended in.
Despite the serious challenges facing Hon-Wasabi production, they also present new opportunities for entry into high-value-added markets, such as health foods and beauty products, by leveraging wasabi’s functional components, particularly hexarafan (6-MSITC), which is abundant in fresh rhizomes. This market transformation will be a crucial key to ensuring the survival and sustainable growth of the traditional industry.