How Japan is innovating with native crops to build a resilient future

Strengthening regionally rooted businesses while maintaining global cooperation is essential to enhance economic resilience. This is especially the case when geopolitical turmoil adds complexity to the global economy.

The World Bank has warned that rising tariffs and increasing uncertainty pose a “significant headwind” for nearly all economies. As a result, it has downgraded its global growth forecast for 2025 by 0.4 percentage points to 2.3%. Japan is no exception to this growing trend. Rising transportation costs, due to U.S. tariff hikes and geopolitical instability, are beginning to impact its economy more broadly.

It is necessary to develop stable regional economies to build economic foundations that are less susceptible to external influences. In particular, reinforcing the local supply of raw materials, as well as strengthening regional production and distribution systems, helps improve the reliability and flexibility of supply chains, contributing to greater economic resilience.

One approach is the use of traditional materials that are abundant in local areas. Businesses that leverage local resources support regional economies and have the potential to contribute to sustainable growth. In Japan, a growing number of initiatives are blending traditional materials, including tea, bamboo and seaweed, with modern technologies and collaborative business models, unlocking new value while honouring cultural heritage. Although each material presents unique challenges, these efforts to unlock new potential in traditional resources share a spirit of 'onko-chishin' or learning from the past to innovate for the future.

Tea production in Japan has been gradually declining. Output in 2023 was down 12% from 2008 levels. Behind this trend lies an ageing farming population and a shortage of successors, leading to an increasing number of neglected tea fields. Tea fields produce tea leaves and serve important ecological functions, including preventing landslides and deterring wild animals. Abandoning them can lead to negative environmental consequences.

Amid these challenges, global demand for matcha tea has surged significantly since 2023, creating a domestic shortage in Japan by the latter half of 2024. Green tea exports exceeded JPY 30 billion ($204.6 million) in 2024, marking a record high. Green tea and matcha originate from the same tea tree, with matcha produced from shade-grown leaves known as tencha. While the Japanese government is encouraging a shift towards tencha production, the process is more labour-intensive and requires specialized equipment, posing challenges in securing labour and investment.

To address this problem, JA Mitsui Energy Solutions has partnered with two other companies to support matcha production by combining it with solar power. Solar panels are used to provide the necessary shading for tencha production, while simultaneously generating electricity. The goal is to enhance farmers' income and reinvest the profits from power generation into local communities, contributing to sustainable agriculture and regional revitalization.

In a parallel effort, beverage company Ito En is promoting tea cultivation as a viable long-term solution for revitalizing abandoned farmland. By providing cultivation expertise and access to processing facilities, the company is helping to repurpose idle land and generating employment opportunities within local communities.

Bamboo was once widely used for everyday goods in Japan. Lifestyle changes, however, have reduced demand and led to an increase in neglected bamboo groves. As of March 2023, the total bamboo forest area had reached approximately 175,000 hectares and is showing a slight upward trend. Since bamboo grows rapidly and propagates aggressively, poorly managed groves can encroach on adjacent farmland and residential areas, causing so-called 'bamboo damage.' When properly utilized, however, bamboo has the potential to become a sustainable resource.

Professor Taro Kinomoto of Oita University has developed a unique method to extract cellulose nanofibers (CNF) from bamboo fibres. CNF is a highly refined material produced by breaking down cellulose to the nano level. It is said to be one-fifth the weight of steel, yet five times stronger, making it a promising alternative to reinforced plastics and other advanced materials. In 2024, a joint study with the Japan Aerospace Exploration Agency (JAXA) and Shizuoka University explored the use of CNF in satellite components, gaining significant attention. One of the key challenges in the high-temperature environment of space has been that the adhesives and resins currently used in satellites emit organic gases, which can fog camera lenses. The research team found that bamboo CNF, under similar conditions, releases only water vapour, demonstrating its strong potential as an alternative material for satellite applications.

Meanwhile, Tokai Rika Co., Ltd. has developed a composite material called BAMBOO +. This contains up to 55% bamboo fibre processed using proprietary techniques. While reducing the use of petroleum-based materials, BAMBOO + also meets the quality standards required for automotive interior components. Mass production is scheduled to begin in July 2025, with plans to enhance flame resistance to explore its use as a building material in the future.

Seaweed, such as wakame, nori and kombu, has long been rooted in Japanese food culture.

Seaweed absorbs and stores carbon dioxide in marine environments and plays a crucial role in supporting biodiversity by providing a habitat and breeding grounds for marine life. However, rising sea temperatures and increased grazing by marine organisms have led to a decline in seaweed populations, weakening their carbon capture and storage capacity.

Sea Vegetable, a Japan-based startup, has succeeded in cultivating seaweed on land and at sea across approximately 30 locations nationwide, using mineral-rich deep seawater and environmentally low-impact methods. It's working to regenerate seaweed ecosystems and foster new food cultures. In November 2024, it launched a joint demonstration project with Panasonic that combines robotics and IoT technologies with seaweed aquaculture and aims to contribute to biodiversity conservation and greater food security.

The World Economic Forum's Global Risks Report 2025 warns that escalating geopolitical, environmental, social and technological risks threaten global stability and progress.

These risks pose significant challenges to national economies, making regionally rooted businesses a cornerstone of resilience and stability.

New initiatives that harness local natural resources are helping to preserve local cultures while advancing sustainability and resilient societies. As global fragmentation deepens, the importance of such efforts is rising, offering lessons and opportunities that extend beyond the local context.