Open to Imports
  • The total market size for organic packaged food and beverages in Japan in 2017 is US$597.4mn, making it the 13th largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in Japan is US$4.71, which ranks as the 23rd largest spending per capita in the world.
  • Artisanal producers collectively hold the largest market share with 24.2% of total sales, followed by Gruppo Alce Nero and Takanashi Dairy Co Ltd.
  • Organic packaged food and beverages in Japan will see slow year-on-year growth of close to 0% in 2018. This is much slower than the rest of the Asia Pacific region, which will experience approximately 13% year-on-year growth in 2018.
  • Japan maintains a market size for organic packaged food and beverages of US$597.4 million in 2017, which is 1.5% of global category sales.
  • Within the Asia Pacific region, only China surpasses Japan in total value sales of organic packaged food and beverages.
  • Despite the large market size, Japan will experience slow forecast growth of sales of organic packaged foods and beverages, at a 0.5% CAGR from 2017–2022.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in Japan in 2017 is US$597.4mn, making it the 13th largest market in the world by value.
  • Organic packaged food is a niche market in Japan, and products are typically premium-priced.
  • Organic products are strictly controlled by the government under Japanese Agricultural Standards (JAS). All organic products sold in Japan are certified “Organic JAS” according to government standards.

Market Trends

Competitive Landscape

  • The organic foods landscape remains very competitive and fragmented due to the fact that major manufactures tend to target mass consumers with standard products, while smaller players offering organic products target a niche market of health-conscious, higher-earning Japanese consumers.
  • Artisanal players collectively held the largest market share in 2017 at 24.2%, due in large part to the fact that organic bread, which is among the most popular organic products, tends to be sold at smaller bakeries in Japan.
  • Though the competitive landscape is fragmented, top manufacturers that have carved out share of the market include Italy-based Gruppo Alce Nero and Japan-based Takanashi Dairy Co Ltd.

Prospects and Growth Opportunity

  • Organic packaged food and beverages are expected to see slow growth over the forecast period due to the low levels of organic production in Japan, consumers’ limited interest in the category and packaged food and beverage companies’ reluctance to launch new products.
  • Nevertheless, the increasing presence of supermarkets focused on organic products will be a potential growth opportunity in coming years, as their visibility could raise awareness of the benefits or organic products.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy:

  • Japan’s economic growth has been recovering since the destructive earthquakes and tsunamis of 2011 brought it to a halt. The recovery accelerated in 2017, as real GDP rose by 1.5%.  
  • Japan’s income inequality is worsening as its population ages and the income of the elderly falls relative to the working-age population. Additionally, the number of “irregular workers”, who earn less than half of the pay of regular workers, has soared to about one-third of the workforce.
  • Real GDP is projected to grow by 1.1% in 2018, driven by exports, tourist receipts and business investments.

Population demographics:

  • Japan’s population has been declining and reached 126 million in 2017—about 900,000 less than in 2000.
  • The median age is 47.6 years—significantly higher than in other large economies in the region.
  • In 2017 people older than 65 accounted for 27.9% of the total population, and their share will rise to 31.5% by 2030. The government forecasts that 40% of the population will be of retirement age by 2050.

Income & expenditure:

  • In 2017 per capita consumer expenditure was ¥2,359,000 (US$21,680) and is projected to grow by 1.4% in 2018
  • Per capita disposable income in 2017 was ¥2,514,000 (US$23,107) and is projected to grow by 1.0% in 2018.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

CAGR
(14-17)

CAGR
(17-20)

 

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

USD million

   47,288.2

   48,268.3

   49,638.1

   50,688.7

   51,704.0

   52,703.2

   53,701.4

2.3%

1.9%

Organic packaged food and beverages consumption

USD million

        582.6

        588.5

        592.9

        597.4

        601.4

        604.9

        608.1

0.8%

0.6%

Organic packaged food consumption

USD million

        370.8

        375.0

        378.1

        381.0

        383.6

        386.0

        388.3

0.9%

0.6%

Organic beverages consumption

USD million

        211.8

        213.5

        214.8

        216.4

        217.8

        218.9

        219.8

0.7%

0.5%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

-

-

Economic & demographic data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Total population

million

        127.1

        126.8

        126.5

        126.0

        125.6

        125.1

        124.5

% Middle and upper class of total population

%

            0.4

            0.4

            0.4

            0.4

            0.4

            0.4

            0.4

% Population aged 65+

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

% Population aged 0-14

%

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

% Population with higher education degrees

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

Average number of children per household

children

            0.4

            0.4

            0.4

            0.4

            0.4

            0.3

            0.3

GDP per capita

USD per capita

   35,992.5

   37,187.3

   37,717.0

   38,378.0

   38,946.3

   39,411.1

   39,769.2

Consumer expenditure per capita (US$)

USD per capita

   20,536.9

   20,622.7

   20,677.5

   21,017.7

   21,146.4

   21,388.3

   21,451.4

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

     3,011.7

     3,142.8

     3,165.5

     3,224.2

     3,247.9

     3,288.5

     3,299.9

Retailer & City Data

Data category

Rank

City/retailer

Population
(mns)

 

 

 

 

Top cities by population (2017)

1

Tokyo

           37.3

Top cities by population (2017)

2

Osaka

           19.1

Top cities by population (2017)

3

Nagoya

             9.1

Top cities by population (2017)

4

Fukuoka

             5.5

Top cities by population (2017)

5

Shizuoka

             2.7

Top grocery retailers by sales (2017)

1

7-Eleven

 -

Top grocery retailers by sales (2017)

2

Family Mart

 -

Top grocery retailers by sales (2017)

3

Lawson

 -

Top grocery retailers by sales (2017)

4

MaxValu

 -

Top grocery retailers by sales (2017)

5

Life

 -

USDA GATS data

Rank

2017

2016

2015

2014

  Export Value (US$, thousands)

1

Cauliflower

3,485.0

Cauliflower

8,075.0

Cauliflower

9,805.0

Cauliflower

14,117.0

2

Brocolli

Grapes

6,435.0

Berries

7,443.0

Grapes

4,752.0

3

Grapes

725.0

Brocolli

269.0

Grapes

4,873.0

Brocolli

2,613.0

4

Coffee Roast

395.0

Strawberries

6,200.0

Tomato Sauce

1,774.0

Celery

1,592.0

5

Strawberries

 6,731.0

Tomato Sauce

1,319.0

Blueberries

1,082.0

Grapefruit

1,582.0

Total

20,410.0

35,837.0

27,569.0

26,501.0

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

Ministry of Agriculture, Forestry and Fisheries (MAFF)

Agency(s) Contact Information: 

1-2-1, Kasumigaseki
Chiyoda-ku, Tokyo 100-8950, Japan
Website

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard: 

Date of Implementation: 

2000

Regulation and/or Standard Scope: 

The standards cover plants, processed foods, livestock feed, and livestock products, as well as transportation, selection, processing, cleaning, storage, packaging, and other post-harvest processes for domestic and imported products.

Imported Products Requirements

Imported Products: 

Importers must be certified. Technical criteria for importers cover facilities, methods for acceptance and storage of imported product, qualifications and number of persons in charge of acceptance and storage of imports and for those in charge of grading labeling, and for attaching grading labels. Japan has approved rules and standards of some countries as equivalent with the Organic JAS system. The equivalent grading system of another country does not mean that it is identical to the Organic JAS system. The integrity of the Organic JAS system is maintained through setting the terms of exports to Japan for crucial differences between both grading systems.

The United States has an Equivalency Agreement with Japan.

 

Certification and Accreditation

Accreditation Method: 

Government

Accreditation: 

MAFF accredits certifiers.
The United States has an Equivalency Agreement with Japan.

Additional Information

Reference Standards: 

Based on Codex Guidelines for the Production, Processing, Labelling and Marketing of Organically Produced Foods

Additional Information: 

Definitions

Review definitions of terminology included in this website.