The global expansion of yuzu | Strategies for success in overseas markets

Yuzu, the Japanese aroma the world is watching. Did you know that this yuzu is loved around the world?

This acidic citrus, cultivated mainly in the Shikoku region such as Kochi and Tokushima prefectures, is now establishing an international brand as Yuzu. Its recognition overseas has risen rapidly along with the washoku boom, and it is accepted in diverse forms, from high-end restaurants in France to café chains in Thailand to the health-conscious drink market in the United States.

However, simply exporting does not mean success. To survive in overseas markets, a deep understanding of local food culture and consumer needs and a strategic approach are essential. Based on actual success cases, this article explains concrete strategies in the global expansion of yuzu and the points of market development that even small and medium-sized enterprises can practice.

Why is yuzu sought overseas now?

The asset called Yuzu, born of the washoku boom

Behind the attention yuzu receives overseas is the worldwide spread of washoku culture. Its distinctive aroma, unlike lemon or lime, and its refreshing acidity, said to be about three times that of lemon, stimulate chefs' creativity.

In France in particular, chefs at high-end restaurants discovered the appeal of yuzu, triggered by the yuzu tasting event Kochi Prefecture held in 2011. At this tasting event, the two-star restaurant Senderens was booked out, and about 140 local chefs and media figures were invited. The dishes made with Kitagawa Village-grown yuzu received high praise, becoming the catalyst for yuzu to spread across all of France.

A tailwind from health consciousness and premium orientation

Vitamin C and aroma components such as limonene and citral contained in yuzu are expected to have health and relaxation effects. Such functionality has become a powerful appeal point in overseas markets where health consciousness is rising.

In Thailand, a yuzu-specialty brand called Yuzu House was born, starting from online sales and growing to 23 stores. The founder, impressed by yuzu's distinctive acidity and aroma, launched the business from a wish to spread 100% natural yuzu products in Thailand. This case shows the potential for a Japan-origin fruit to be branded locally.

Four strategies for succeeding in overseas markets

Strategy 1: Thorough market education and storytelling

For overseas consumers who do not know yuzu, market education is essential, not just selling the product. A communication strategy that carefully conveys what yuzu is, what features it has, and how to use it is the key to success.

Thailand's Yuzu House actively communicated yuzu's benefits (vitamin C, health, the refreshing effect of its aroma, and so on) through social media and events. Yuzu Honey, the first product put on the market, succeeded in capturing the refreshing, sweet-and-sour taste that Thais prefer by combining yuzu's refreshing aroma with the gentle sweetness of honey.

Strategy 2: Product development matched to local food culture

Rather than just exporting as a luxury item, it is important to propose it in a form matched to local food culture and taste. In France, fresh yuzu fruit was sought, and in Thailand, application to drinks and sweets advanced.

In Kitagawa Village's case, they initially aimed to develop sales channels for juice and peel, but at the tasting event in France, many chefs requested fresh yuzu fruit. To meet this local need, they worked on preparing citrus export-registered orchards for EU member countries and studying cultivation methods that clear residual pesticide standards, achieving Japan's first fresh-yuzu export just eight months later.

Strategy 3: Organized market development through public-private collaboration

It is difficult for a small village of 1,300 people alone to develop overseas sales channels. Kitagawa Village sought support from the prefecture and, together with Kochi Prefecture, held the Kochi Prefecture Yuzu Tasting Event. It also exhibited at the food fair FHA2010 with support from Kochi Prefecture's Singapore office, connecting to business talks with major beverage manufacturers.

Furthermore, top sales by Kochi Governor Ozaki led to continued strengthening of the relationship between manufacturers and producers. Such public-private collaboration has contributed to building a sustainable export system.

Strategy 4: Stepwise market expansion and risk management

Yuzu House first started from online sales. This is a method of confirming the market's reaction while keeping investment risk down, and a realistic approach for small and medium-sized enterprises. After gradually building a customer base, they expanded stepwise into physical stores.

Kitagawa Village also started by exporting about 10 tons of yuzu juice per year to the United States and elsewhere, and using the success in France as a foothold, widened its expansion to other markets such as Singapore. Such a stepwise approach can be called the secret to steadily expanding the market while minimizing risk.

Concrete steps that small and medium-sized enterprises can practice

Step 1: Selecting and researching the target market

First, you need to determine in which market your company's yuzu products have a high potential to be accepted. A strategic judgment is required as to whether to choose an information-transmitting hub of food culture like France, or a market where health consciousness is rising like Thailand.

In market research, you need to investigate in detail the local food culture, consumer preferences, competitive conditions, and regulatory environment. Using support organizations such as JETRO (Japan External Trade Organization) makes it possible to gather information on overseas markets and participate in local inspection missions.

Step 2: Preparing an export system and obtaining certifications

Overseas export requires clearing quarantine conditions and addressing residual pesticide standards. In Kitagawa Village's case, they worked on selecting citrus export-registered orchards for EU member countries and studying cultivation methods that can clear the EU's residual pesticide standards.

Also, using processing techniques such as drying and powder processing makes long-term storage possible while preserving the aroma, lowering the hurdle of export.Dried yuzu peelandYuzu powderis used widely as a raw material for confectionery, drinks, cosmetics, and more, and commercial demand is also high.

Step 3: Building relationships with local partners

For success in overseas markets, strong relationships with local partners are essential. Kitagawa Village deepened relationships through continued exchange, such as inviting the famous Singaporean chef Janice Wong for a harvest experience.

Exhibiting at food fairs is also effective as a place to meet local buyers and chefs. At SIAL2012, held in France in 2012, Japan's first fresh-yuzu export was realized, and there were inquiries from about 20 countries for just 3 tons of fresh yuzu.

Step 4: Continuous follow-up and improvement

Yuzuya Honten Co., Ltd. of Hagi City, Yamaguchi Prefecture, says that thorough advance preparation and follow-up are the secret to success. Overseas markets take many times more effort than the domestic market, but the accumulation of continuous communication and improvement leads to long-term success.

It is also essential to always take an interest in competitor information and overseas market trends and to respond flexibly to changing market needs. Using programs such as JETRO's training school for developing overseas-business human resources at small and medium-sized enterprises can be expected to improve sales skills beyond export as well.

To make global expansion a success

The global expansion of yuzu is a good example showing the potential for Japanese regional products to succeed in the world market. But that success is not by chance. It is realized precisely because of a strategic approach of thorough market education, adaptation to local needs, organized efforts through public-private collaboration, and stepwise market expansion.

Even small and medium-sized enterprises can make success in overseas markets no dream at all, if they steadily practice the four steps of selecting the target market, preparing an export system, building relationships with local partners, and continuous follow-up.

The distinctive aroma and health effects that yuzu holds have the power to captivate consumers around the world. With the right strategy and execution, your yuzu business too should be able to shine in the global market.

Let's take action right now.Why not consult a support organization such as JETRO and start with overseas market research? Seize the great opportunity of yuzu's global expansion with your own hands. The world is waiting for the appeal of Yuzu.