Technically Speaking: Trends signal opportunities for specialty grains in Japan, Korea

By Alyson Segawa, SSGA Technical Adviser, North Asia

Japan and South Korea are recognized as global leaders in sustainable development. As these governments have displayed a commitment to environmental sustainability, a growing interest in sustainability has been reflected among consumers as well. This increased awareness has extended to increasing demand for ecologically sustainable, healthy foods.

Health consciousness and high income, combined with an aging population, fuels consumer demand for health-oriented foods in Japan. Japan is the No. 1 buyer of U.S. buckwheat, rye and barley. There may be further adaptation of specialty grains in these countries as there is growing interest in the benefits of complex carbohydrates and whole grains.

Illustrative of this shift is the recent rapid growth of U.S. food barley sales to Japan in recent years. The USDA Annual Grain and Feed Report forecasts, “FSI barley consumption in Japan is forecast at 410,000 metric tons in MY2020/21 to reflect continued popularity of glutinous barley consumption.” High beta-glucan barley is primarily used as a rice extender, and Japanese food processors are incorporating it into other products as well.

It is not just barley that is being utilized as a rice substitute. Zakkoku mai is a variety of different specialty grains mixed with white rice and another example of the trend toward incorporating more whole grains in Japanese diets.

South Korea is the No. 2 importer of U.S. buckwheat and quinoa and the fourth-largest importer of U.S. millet. Specialty grains are sometimes used as a rice substitute and marketed as “super grains” for their health benefits. Sales of U.S. barley to South Korea increased due to the implementation of the Korea-U.S. Free Trade Agreement (KORUS FTA), and South Korea is the third-largest importer of U.S. barley, according to the USDA.

These market trends and related data appear to suggest growing interest by the health food industry in food-grade barley. The data therefore suggests there may be significant opportunities to increase sales of U.S. IP specialty grains in the near term.

Technically Speaking is an SSGA feature that includes news and information from SSGA’s technical advisers for North Asia (Alyson Segawa), Southeast Asia (Hoa Huynh) and Europe (Eugene Philhower). They want to hear from you! Contact them via email: info@soyagrainsalliance.org.