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Commodity Innovation Series – Snapshot of opportunities in Japan’s mustard seeds sector

For over fifteen years, Canada has consistently been Japan’s largest supplier of mustard seeds, responsible for 89% of its imports in 2016.

Market trends

Although this report discusses mustard seeds as a whole, it should be noted that the mustard seeds varieties that Canada exports to Japan are mostly processed into karashi and used as condiment for dishes such as natto, tonkatsu, oden. Karashi is a traditional preparation used as a condiment or as a seasoning in Japanese cuisine. Canada is a dominant supplier of varieties used in karashi preparation, since there is almost no domestic production of these varieties.
Mustard seeds in Japan are used as ingredients in a variety of products, such as baked goods, seasonings or snacks.
Table sauces made up 31% of the sauces, dressings and condiments category, achieving US$ 5,378 million retail sales in 2017. This figure has been growing at a compound annual growth rate (CAGR) of 1.1% from 2013 to 2017.
The health and wellness sauces, dressings and condiments are also gaining in popularity in Japan. Retail sales in that category have increased at a CAGR of 3% from 2013 to 2017, recording a total of US$ 141 millions in 2017.
The bread subcategory accounted for 18% of the baked goods category, achieving US$ 3,627 million retail sales in 2017. This figure has been growing at a CAGR of 0.9% from 2013 to 2017.

Mustard seeds trade

In 2016, Japan imported C$5.9 millions worth of mustard seeds, of which C$5.3 million came from Canada.
Japan’s total mustard seed imports grew at a CAGR of 2% from 2012 to 2016.
Canada’s main competitor in Japan for mustard seeds is Hungary, whose share has been growing at a 44% CAGR during the same period.

Mustard seeds in bulk - 2016

Description of this image follows. — **World’s top ten importers of mustard seeds**

Country	C$ Millions
United States	71
Germany	48
France	34
Belgium	13
Netherlands	12
Venezuela	8
Poland	7
Japan	6
United Kingdom	6
Denmark	5

Country	%
Canada	89.4%
Hungary	6.2%
United States	1.7%
France	1.0%
Others	1.7%

Mustard seeds used as an ingredient

From 2012 to 2017, 338 products containing mustard seeds were launched in Japan.
70% of products containing mustard seeds launched in Japan were new introductions, while 30% were relaunches.
Top product launch categories were sandwiches/wraps, table sauces and bread and bread products.
Between January 2012 and December 2017, Yamazaki Baking launched the most products containing mustard seeds.

There is a growing emphasis on products that claim to be free of genetically-modified organisms (GMO)

Top growing claims

GMO-free
No additives/preservatives
Microweavable

Top declining claims

Social media
Premium
Ethical: environmentally-friendly package

New packaging made up 11% of product launches containing mustard seeds

Top package types

Flexible
Tube
Tray

Top package materials

Plastic polypropylene
Plastic unspecified
Metallised film

Company	Number of products	Top brand
Yamazaki Baking	33	Yamazaki Best Selection
S&B Foods	30	S&B Honnama
Seven & i Holdings	27	Seven & i Premium
Aeon	23	Topvalu
Ministop	21	Honoka Original Bread

Examples of products containing mustard seeds launched in Japan

Seven & i Holdings

Japan
Sep 2015

Sauteed Chicken with Honey Mustard Sauce

S&B Foods

Japan
Mar 2017

Japanese Style Mustard

First Baking

Japan
Jun 2016

Wasabi & Beef Bread

Circle K Sunkus

Japan
May 2015

Mustard Mayonnaise Sauce Double Teriaky Burger

S&B Foods

Japan
Apr 2015

Pickles Seasoning

Yamazaki Nabisco

Japan
Sep 2014

Bacon & Mustard Flavour Potato Snack

Top innovative markets for mustad seeds in Asia

Japan ranks sixth in the Asia-Pacific for innovation in the launch of products containing mustard seeds.

Innovation Criteria	India	New Zealand	Australia	South Korea	China	Japan	Taiwan	Indonesia	Sri Lanka	Thailand
Relaunch	Fair	Fair	Fair	Low	Fair	Fair	Low	Fair	Low	Good
New product	Very good	Excellent	Very good	Excellent	Excellent	Very good	Excellent	Very good	Excellent	Good
Product line diversity	Very good	Good	Good	Fair	Good	Good	Fair	Fair	Fair	Fair
Health & wellness claims	Very good	Very good	Good	Good	Fair	Fair	Good	Fair	Good	Fair
Rating scale: Excellent (20-17), Very good (16-13), Good (12-9), Fair (8-5), Low (4-0)

Factors of consideration

Japan’s stringent regulatory system and decision making process are built on a science-based framework, and government or consumer relationship is built on trust and respect.
Labelling and packaging must comply with regulations governed by the Ministry of Agriculture, Forestry and Fisheries and the Ministry of Health, Labour, and Welfare.

Recommendations for entry

Develop a good understanding of regulations and procedures to make sure your products are compliant with them.
Consult with your importer to be aware of all the requirements applicable in the market you want to reach.
Follow import regulations to avoid imports being detained for non-compliances.
Develop a clear strategy and an extended knowledge of the targeted market prior to entry.
Be cognisant of regional differences in Japan and develop a business cultural adaptation strategy.

How we can help

View our Agri-Food Trade Services for information and support to help you achieve your international business goals.

International Trade Commissioners are also an excellent point of contact for export advice and can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions, and local business contacts.

Our market intelligence services include:

Identifying market opportunities and trends abroad
Economic, business, and consumer trend forecasts
Analysis of distribution channels, including e-commerce
Detailed sector analysis
Product innovation trends

Have we piqued your interest?

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