COUNTRY PROFILE

Japan Country Profile

Discover more about the Japan market including overviews about the retail, foodservice, and food-processing sectors. Events, resources, and more are linked throughout the profile.

Market Overview

29.5%

of Japan’s total population is 65 years of age or older

3rd

Japan is the third largest U.S. export market for processed foods.

$2.6 Billion

Total processed food exports to Japan in 2024 were $2.6 billion.

USDA’s Agricultural Trade Office (ATO) in Osaka hereinafter referred to as “FAS Post Osaka” reports that the Japanese food market was valued at US$564 billion in 2022 with retail sales accounting for US$327 billion (58%) and foodservice sales accounting for US$237 billion (42%).  

Japan relies on imports from other countries for the bulk of its food supply. The U.S. was the leading supplier of consumer-oriented agricultural products with a 17% market share and in 2023 U.S. processed food exports to Japan were US$2.6 billion.  

The Japanese market is highly competitive with consumers seeking quality, value, and convenience. Japan’s food industries are well-developed and innovative in all sectors.  

Top processed foods exported to Japan in 2024 included: 

  • Processed Vegetables and Pulses 
  • Food Preparations and Ingredients    
  • Prepared/Preserved Seafood and Meats 
  • Processed/Prepared Dairy Products   
  • Alcoholic and Non-Alcoholic Beverages 
  • Canned, Dried, and Frozen Fruit    

Market Opportunities and Key Issues for U.S. Processed Food Exporters in Japan

Market Opportunities

  • U.S. products have a good quality reputation and are generally priced lower than domestic products  
  • Recognized as a global leader in high standards for food safety and animal/plant health 
  • Perception of the U.S. as a reliable supplier with large production capacity 

Key Issues

  • High costs for marketing in Japan and the need to adjust retail packaging size for the domestic market 
  • Strict regulatory standards for imports that sometimes exceed U.S. domestic regulations 
  • Deliberate pace of business decision-making and the expectation of long-term commitment from foreign suppliers 
  • Price inflation and the strengthening of the U.S. dollar vis-à-vis the Japanese yen have made U.S. products less competitive 

Retail Sector

3rd

Japan is the third largest packaged food market in the world after the U.S. and China.

29%

Convenience stores account for 29% of retail food sales.

$172.8 billion

By 2029, the packaged food market is expected to reach US $172.8 billion

According to Euromonitor, retail sales in the packaged food market in Japan had been estimated at US$156.1 billion in 2024. Japan is the third largest packaged food market in the world after the U.S. and China. By the year 2029, the retail sales in the packaged food market in Japan is expected to reach US$172.8 billion, growth of 8.3% or US$13.2 billion from 2025. 

Supermarkets represent the bulk of the retail food sales at 45% and the convenience store sector accounts for approximately 29% of sales. Ready-to-eat meals or take-home foods represent a continued area of growth. 

Best Product Prospects:

FAS Post Tokyo reports that Japanese importers and consumers frequently seek new, trendy, and innovative products. Opportunities may be found at any time for competitively priced, quality, or novel products, e.g. alternative meat (plant-based protein) products, edible oil, prepared chicken, coffee, dairy products, craft beer, and spirits. 

Foodservice Sector

$226.2 Billion

Total sales of Japan’s hotel, restaurant and institutional industry reached US$226.2 billion in 2023

FAS Post Tokyo reports that in 2023, total sales of Japan’s hotel, restaurant, and institutional foodservice industry (HRI) increased by approximately 16% compared to the previous year, reaching US$226.2 billion. The surge in international tourists contributed to these increases in all categories within the hotel and restaurant industry. The U.S continues to be well positioned to continue supplying this segment with U.S. agricultural products accounting for nearly one-quarter of the food that Japan imports. 

Best Product Prospects:

FAS Post Tokyo reports that U.S. food products currently in the Japanese food market with good sales potential in the future include lean beef, poultry and egg products, pork and pork products, processed vegetables, wheat and products, and fresh and processed fruit along with wine and beer as well as whiskey and cheese. 

Food-Processing Sector

$182 Billion

The value of food produced by the food processing industry in Japan was US$182 billion in 2023

FAS Post Tokyo reports that the food processing industry in Japan industry experienced a 4.1% decline in the value of food produced in 2023 from 2022 on a dollar basis totaling US$182 billion compared to US$190 billion in 2022. Production increases were seen in wheat flour, dairy, processed meats, and sugar categories. 

Food processors focus on maintaining market share among traditional product lines while developing creative and innovative food products to attract consumers. Notable trends include ready-to-eat or easy-to-prepare meals. 

Best Product Prospects:

FAS Post Tokyo reports that Japanese food manufacturers seek quality ingredients and conveniently prepared semi-processed foods that can reduce costs. Specifically, indications are that there is good potential in the market for beef and beef products, pork and pork products, wheat and wheat products, processed fruit, processed vegetables and cheese.  

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