Japan’s Evolving Appetite: Key Trends in Food Exports

Japan remains a major market for global food and beverage exports, driven by shifting consumer preferences and a growing appetite for high-quality imported products. In 2023, Japan achieved a record high in food exports, reaching ¥1.45 trillion (around $10.2 billion), marking the eleventh consecutive year of growth. This increase was largely supported by the recovery of restaurant demand post-COVID-19 and a favorable yen exchange rate. However, the market has also faced challenges, such as China's suspension of Japanese seafood imports, which impacted overall growth in the latter half of the year.

Key Trends in Japan's Food Import Market

1. Health and Wellness Focus: Japanese consumers are increasingly interested in healthier food options. There is a strong demand for organic foods, plant-based proteins, low-calorie snacks, and functional foods that offer added health benefits, such as high vitamin or mineral content. This trend is driven by a focus on healthy living and the aging population's dietary needs.

2. Sustainability and Ethical Sourcing: Consumers and businesses in Japan are prioritizing sustainability more than ever. Foods that are sustainably sourced, ethically produced, and come with transparent supply chains are more likely to appeal to Japanese buyers. This includes interest in eco-friendly packaging and sustainable agricultural practices.

3. Convenience and Ready-to-Eat Meals: There is a growing demand for convenience foods, such as ready-to-eat meals, meal kits, and other quick-preparation foods. This trend is fueled by the busy lifestyles of urban consumers who prefer products that save time without compromising on quality. Retail sales in Japan's packaged food market reached an estimated $169.5 billion in 2023, reflecting a 10.2% growth since 2019.

4. International Flavors and Premium Products: The Japanese market is increasingly open to international flavors and high-quality imported foods. Italian food exports, for instance, reached over €934 million in 2023, with significant increases in products like pasta (+18.4%), cheeses (+14.9%), and tomato preserves (+22.1%). The presence of Italian companies at trade shows like Foodex Japan further highlights the growing interest in diverse and high-quality international products.

Successful Exporters and Their Strategies

Several international companies have found success in Japan by adapting their strategies to meet local tastes and regulatory requirements:

• U.S. Companies: The United States remains a leading exporter to Japan, particularly in categories like pork (35% market share), beef, wheat, and processed foods. U.S. products are often sought after for their quality and freshness, with prominent sales in supermarkets and non-traditional retailers like drug stores.

• Italian Companies: Italy's strong presence in the Japanese market is bolstered by a focus on high-quality and premium products, such as cheeses, wines, and specialty foods. At Foodex Japan 2024, over 220 Italian companies participated, showcasing a variety of products that align with Japanese consumer preferences for premium and authentic foods.

Outlook and Opportunities

Japan's government has set an ambitious export target of ¥5 trillion by 2030, aiming to capitalize on the growing demand for imported foods. Exporters looking to enter or expand in the Japanese market should focus on understanding consumer preferences, adhering to strict regulatory standards, and leveraging the country's growing e-commerce platforms. By aligning with these trends and demonstrating a commitment to quality and sustainability, exporters can effectively tap into Japan's dynamic and lucrative market.