Ina Food Industry is developing Agar for a variety of applications, such as cuisine, pet food, cosmetics and functional foods.
Agar is a natural substance derived from cell walls of certain types of red algae or seaweed. Renowned for its stabilising properties, it serves as a versatile ingredient across various industries, especially the food industry. First discovered during Japan’s Edo period, agar has been deeply rooted in Japanese culture, and is widely utilized. Could you elaborate on the cultural significance of agar as a key ingredient in Japan since the Edo Period as well as some of the benefits of agar and use cases?
Agar was first discovered in Japan during the Edo era, around 400 years ago. Between the Edo and Meiji periods, its primary use was as an ingredient in traditional confectionery. However, during the Taisho era, further applications of agar, such as medium were discovered globally, leading to a significant increase in demand. By the time World War II approached, Japan was exporting agar worldwide. However, during the war, the Japanese government imposed a ban on its export.
(because agar was important substance for bacterial culture)
After the war, bacterial agar production expanded outside Japan, but these plants primarily manufactured agar for non-food applications, such as modeling clay and thin-film production. Meanwhile, in Japan, demand for agar remained largely confined to its traditional role in confectionery.
Our company was founded in 1958, making us the most recent agar manufacturer in Japan. At that time, there were still around 50 other agar manufacturers in the country, creating a highly competitive market. Establishing ourselves was challenging, particularly since major confectionery manufacturers were unfamiliar with our company. anot. Today, the properties and functions of our products are widely recognized across multiple sectors, such as cosmetics, pet food. While I want to remain humble, I can confidently say that we have been pioneers in exploring non-confectionery uses for agar.
Over the next 15 years, Japan is expected to face significant challenges due to its aging and declining population. This demographic shift will lead to both a labor shortage and a shrinking domestic market for products. What challenges does your company anticipate as a result of these changes, and what measures are you implementing to mitigate them? Additionally, do you see any opportunities arising from this evolving landscape?
Although Japan’s population is shrinking and domestic demand is declining, agar remains a niche but essential ingredient in food manufacturing. In fact, I believe demand for agar has the potential to grow.
At the same time, global interest in agar has shifted significantly compared to 20 years ago, when there was little demand outside Japan. Today, that is no longer the case. More industries worldwide recognize the versatility of agar, particularly in Eastern Asia, the United States, and EU contains European region. This presents a strong opportunity for our company to expand overseas and tap into these emerging markets.
Red algae (raw material of agar)
Why do you think agar has gained such strong interest from the global market? What makes it so attractive to international consumers and industries?
I sometimes wonder that myself, and I don’t have a definitive answer. However, I believe it may be linked to the increasing demand on plant-based food and better understanding on Japanese food culture.
A good example is nori (seaweed). I’ve heard that in the past, many non-Japanese consumers were put off by its black color, which is why in California rolls, the nori was hidden inside the sushi. However, as Japanese food has gained worldwide appreciation, perceptions have changed—now, people don’t mind whether the nori is visible or not.
Similarly, seaweed consumption has increased outside Japan, whereas it wasn’t widely considered a food ingredient in many countries before. Perhaps agar is experiencing a similar shift in perception, with more people recognizing its versatility and benefits.
What are the main competitive advantages of your company? What sets you apart from your competitors in the agar industry?
Things are quite different now compared to the past, but one of our key strengths remains our ability to produce agar in stable quantities. Since agar is a natural ingredient, maintaining consistency in its properties can be challenging. However, our products are known for their reliability and high quality, which is why we are a preferred supplier for non-confectionery sectors such as dairy and yogurt manufacturers—industries that require stable ingredients for large-scale production.
Another major competitive advantage is our strong focus on research and development, which has allowed us to diversify our product offerings. In the past, agar was primarily categorized by just two factors: the base ingredient used and its firmness. Our company has expanded these parameters, developing agar with varying viscosities and textures to meet a broader range of industrial and culinary applications.
Ina Kanten Agar is a high-quality product designed for professional and industrial applications, widely used in food manufacturing for products like jellies, puddings, and dairy alternatives. It is known for its consistency, reliability, and performance, making it ideal for large-scale production. How does Ina Kanten stand out as a premium product line compared to alternatives? What specific qualities make it particularly suitable for large-scale production and professional use?
One of the key advantages of Ina Kanten Agar is its ease of dissolution. Traditional natural agar requires water heated to at least 100 degrees Celsius to dissolve, whereas our product can dissolve at temperatures between 80–90 degrees Celsius. This lower temperature requirement is particularly beneficial for mass production, as reducing energy consumption by 10–20 degrees Celsius can lead to significant cost savings at an industrial scale. This efficiency, combined with the product’s consistent quality, makes it an ideal choice for large-scale food manufacturing.
Kanten Papa is your household consumer brand, offering agar specifically designed for home use. What are some of your most popular consumer products, and how do your household brands enhance the home cooking experience?
Our consumer products were first launched in the 1980s, around 45 years ago. At the time, instant home-cooked sweets were affordable but often lacked great taste, as they were essentially just powdered mixes. We wanted to change that by introducing a product that was not only instant and easy to use but also delivered exceptional flavor and quality. Our goal was to make the same high-quality agar used in professional food manufacturing accessible to everyday consumers, allowing them to create delicious, restaurant-quality desserts at home.
Also, we believe that the delicious dish at home increases family communication and brings happiness.
How have your consumer products performed in international markets? Is this an area where you see further expansion opportunities?
I’m not focused on setting specific country targets at the moment—I simply want to launch our products in markets where there is strong demand. However, if I had to choose one country, I would say France, as the French have a deep appreciation for high-quality Japanese cuisine. We are also currently exploring opportunities in North America and Australia, with a strategic focus on Western markets rather than Asia for the time being.
Many Japanese food manufacturers typically expand into Asia first, as it allows for quicker and easier market entry, especially if the primary goal is immediate profitability. However, our approach is different. Rather than focusing solely on numbers, we want to create a meaningful connection outside of Japan and build a loyal fan base for our brand. In this regard, the U.S. and Europe seem like the right choices. If you look at long-term global trends, many of them originate in these regions before gaining momentum worldwide.
Agar has been a key ingredient in traditional Japanese sweets for centuries, but as an innovator, you’ve expanded its applications far beyond confectionery. Today, agar is used as a gelling agent, in dairy products, edible films, and even cosmetics. Can you share some of the more surprising use cases you’ve discovered for agar? Beyond the food industry, which sector do you believe holds the most potential for agar’s future applications?
Within the food industry, one of our recent innovations is the use of agar in wafer ice cream cones. By incorporating agar, we’ve made them crack-proof, which is a significant improvement in terms of texture and durability. This is particularly interesting because the wafer and corn industries typically do not use agar, as their products tend to be very dry.
Beyond food applications, we’ve also explored agar’s health benefits. Through joint research with academic institutions, we have analyzed the oligosaccharides in agar and identified its antioxidant properties. One particularly promising discovery is agar’s potential to help soothe knee pain, which could open up new possibilities in the health and wellness sector.
Also, we recycle the residue of agar production as a fertilizer for agriculture, so our agar production is sustainable.
Do you see significant potential for agar in medicinal applications? Could its antioxidant properties lead to further developments in health and wellness?
Yes, there is significant potential for agar in medicinal and health-related applications. However, our focus would remain on developing the ingredient itself rather than producing the final consumer products. We see opportunities to supply high-quality agar for use in health and wellness formulations(, such as ingredient for capsule) allowing other companies to incorporate its benefits into their own products.
Your company actively participates in exhibitions and trade shows to showcase your product line. What value do these events bring to your business, and how do they fit into your overall strategy? Additionally, do you have any plans to exhibit internationally?
Currently, we only exhibit at domestic events and have not yet expanded to international exhibitions. However, moving forward, we are considering the possibility of participating in international trade shows as we explore opportunities to expand our presence in global markets.
Are you seeking partnerships or collaborations to help you enter the international markets you’ve mentioned today? If so, what kind of partners would be the best fit for your global expansion strategy?
We already have a Japanese partner operating locally in France, as well as partnerships in various Asian countries. However, for the U.S. and Australia, we have not yet determined the specific type of partnerships we need. We are still in the process of exploring our options to find the best approach for entering these markets.
If we were to revisit this conversation in three years, is there a specific goal or ambition you hope to achieve by then? What milestones would you like to see realized for your company?
We don’t follow the traditional business practice of setting rigid multi-year plans. Instead, our focus is on continuously improving the company each year. However, improving a company is not the same as simply expanding it.
Customer needs are constantly evolving, and as we consider expanding our business overseas, we recognize that what people value most is strong production capabilities, high-quality output, and robust R&D. I believe Ina Food Industry meets these expectations. At the same time, we firmly believe that a company’s management philosophy is just as important as its business operations. Our mission has remained unchanged for over 50 years, and that consistency in vision and values will continue to guide us forward.
For more information, please visit our website at: https://www.kantenpp.co.jp/corpinfo/
To read more about Ina Food Industry, check out this article about them
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