WHILE social media can cause a sudden surge in demand and prices for trending food ingredients such as matcha and ube (purple yam), these may not translate into long-term commercial longevity, a Fitch unit said.
In a report, BMI said ingredients like these often lose their premium status and become basic commodities as they move from niche to mass market, citing the quinoa experience.
In the early 2010s, quinoa was branded a “superfood,” and producers Peru and Bolivia experienced a massive spike in export earnings between 2012 and 2014.
However, commoditization — where their products became indistinguishable from competitors’ offerings — followed and export earnings fell despite higher volumes. Hype for quinoa as a “superfood” faded and it moved from niche health shops to mainstream retail.
Matcha, on the other hand, is experiencing significant growth, with its mainstream popularity causing export value and volumes to increase.
BMI suggested that matcha may avoid having the same fate as quinoa due to several reasons, including demand outstripping supply and the specific value placed by consumers on Japan-grown matcha.
Even if lower-grade matcha becomes common, premium varieties — such as ceremonial-grade matcha — will continue to be more expensive, BMI said.
Ube, meanwhile, is currently viral on social media due to its vibrant color. However, BMI believes that its long-term commercial value may be at risk.
The Philippines is considered the top global producer of ube. While there is no specific data for ube, data from the Philippine Statistics Authority (PSA) showed that the country exported $1.4 million worth of yam products in 2024.
Just like matcha, farmers in the Philippines struggle to keep up with the global demand. The lack of land was cited as one of the reasons and another issue is the shortage of planting material.
Ube is usually grown from cut-up pieces that farmers bury to propagate new plants. However, the increased global demand may compel farmers to sell as much of their harvest as possible to maximize the opportunity for high prices.
BMI also cited the possibility of substitution. Since ube is mostly used as a color or flavor ingredient, it could potentially be replaced by flavoring, food coloring and other purple crops like purple sweet potatoes.
Because ube is relatively easy to grow in tropical climates, places like Vietnam and Indonesia may compete with the Philippines in ube exports. It noted that without a premium category anchored to matcha exports from the Philippines, the country may lose its pricing power over ube.