THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY
STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
Required Report: Required - Public Distribution Date: May 10, 2024
Report Number: JA2024-0021
Report Name: Exporter Guide Annual
Country: Japan
Post: Osaka ATO
Report Category: Exporter Guide
Prepared By: Hiroto Nakagawa & Shinsuke Kitada
Approved By: Alexander Blamberg
Report Highlights:
The Japanese food market was valued at $564 billion in 2022 with retail sales accounting for $327
billion (58 percent) and foodservice sales accounting for $237 billion (42 percent). Japan relies on
imports from other countries for the bulk of its food supply. The United States was the leading supplier
of consumer-oriented agricultural products with a 17 percent market share. The Japanese market is
highly competitive with consumers seeking quality, value, and convenience. This report serves as an all-
in-one resource for U.S. exporters to Japan with information on the food and beverage market, business
culture, consumer preferences, import regulations, trends, and the U.S.-Japan Trade Agreement. Links
are provided to additional resources with further details on each of these topics.
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Executive Summary:
The United States is the largest foreign supplier of
food and agricultural products to Japan. Meanwhile,
Japan was the fourth largest market for U.S.
agricultural products in 2023 ($13 billion). On
January 1, 2020, the U.S.-Japan Trade Agreement
(USJTA) entered into force, providing preferential
tariff access for many U.S. agricultural products.
Japan’s food industries are well-developed and
innovative in all sectors, including, retail, food
service, food processing, and distribution.
Consumer-Oriented Agricultural Imports (2023)
Food Retail Industry: In 2022, the total value of all
retail food and beverage (F&B) sales in Japan totaled
$327 billion. Supermarkets continue to represent the
bulk of sales in the retail food market, accounting for
35 percent, with convenience stores, drugstores and
internet sales of food and beverages accounting for
the rest of the market.
Food Processing Industry: In 2022, the total sales
from the Japan food service industry increased 14.2
percent, totaling nearly $237 billion, representing
consecutive year double digit growth. Recovery in
the sector was attributed to the strong rebound in
tourism, with visitors to Japan exceeding 10 million.
Food Service Industry: The $182 billion food
processing industry produces a wide variety of foods:
traditional Japanese, Western, and health-oriented
foods for infants and the elderly. Food processors
focus on maintaining market share among traditional
product lines while developing creative and
innovative food products to attract consumers.
Strengths/Weaknesses/Opportunities/Threats
Strengths
Weaknesses
- U.S. products are in
demand and remain
trendy.
- The negotiating and
decision-making process
can take time.
Opportunities
Threats
- With USJTA, nearly 90
percent of U.S. products
are duty free or receive
preferential tariff access.
- For products in USJTA,
many other suppliers
enjoy tariff concessions
through other FTAs.
United States
16%
China
13%
Thailand
8%
Australia
6%
Other
Countries
57%
Retail Food Industry
$327
Food Service-HRI
$237
Food Processing
$182
Food and Agriculture Exports
$9
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Section I: Market Overview
In 2023, Japan’s gross domestic product (GDP) totaled $4.2 trillion, making it the world’s fourth largest
economy. Due to declining birth rates, the Japanese population (estimated at 124 million as of January
2024) is shrinking and steadily aging. 29 percent of the population is currently over the age of 65 and
this number is expected to rise to 35 percent by 2040. Japan has among the world’s highest average life
expectancies at 87 years for women and 81 years for men in 2022. (Sources: The World Factbook,
United Nations, Statistics Bureau, Ministry of Internal Affairs and Communications, Ministry of
Agriculture, Forestry and Fisheries and Ministry of Economy, Trade and Industry)
The Japanese food market was valued at $564 billion in 2022 with retail sales accounting for $327
billion (58 percent) and foodservice sales accounting for $237 billion (42 percent). Japan relies on
imports from other countries for the bulk of its food supply. On a caloric basis, Japan’s food self-
sufficiency rate was 38 percent in 2022 with the remaining 62 percent derived from imported products.
However, on a value basis Japan’s food self-sufficiency rate is 58 percent due to comparatively high
domestic food prices. The United States is the leading agricultural product supplier with 16 percent
import market share in 2023. The aging of Japan’s population has focused attention on healthy and
functional foods, especially those with a high protein content. Lower birth rates have led to smaller
family units, increasing demand for high-quality and high-value products in smaller packages.
Advantages and Challenges
ADVANTAGES
CHALLENGES
Reduced duties under the U.S.-Japan Trade
Agreement
Some U.S. products face higher tariffs than
competitor suppliers due to trade agreements
such as CPTPP and the Japan-EU EPA
U.S. products have a good quality reputation
Japanese consumers generally prefer domestic
products over imports and are willing to pay a
premium for “made in Japan”
Perception of the United States as a reliable
supplier with large production capacity
Desire for Japanese importers to diversify risk
by sourcing from multiple countries
High standards for food safety and animal/plant
health
Strict regulatory standards for imports that
sometimes exceed U.S. domestic regulations
Diverse range of product availability from bulk
to intermediate to consumer-oriented
High costs for marketing in Japan and the need
to adjust retail packaging for domestic market
Increasing westernization of consumer food
preferences
Deliberate pace of business decision-making and
the expectation of long-term involvement and
commitment by foreign suppliers
Variety of product availability with flavors and
different functions
Price inflation and the strengthening of the U.S.
dollar vis-à-vis the Japanese yen have made U.S.
products less competitive
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Section II: Exporter Business Tips
Market Research
U.S. exporters to Japan are encouraged to review USDA Japan reporting on commodities and sectors of
interest. In addition to this report, USDA Japan annually publishes reports analyzing the retail,
foodservice, and processing sectors. There are also ad hoc reports on home meal replacements, health
foods, organic products, and other products. All these reports and more are available at
www.usdajapan.org/market-research and https://gain.fas.usda.gov.
Trade Shows in Japan
Japanese buyers often prefer to find new food and beverage products at large trade shows or specially-
targeted trade showcases instead of “cold calls” or requests for introductory meetings with individual
companies. Many trade shows in Japan are well-suited for U.S. food and beverage companies. These
include FOODEX Japan, Supermarket Trade Show, FABEX Kansai, and Food Style Kyushu. The ATOs
in Tokyo and Osaka often organize USA pavilions at these shows. More information on Japan trade
shows is available at www.usdajapan.org/find-a-partner/trade-shows.
Business Culture in Japan
Japanese businesspeople tend to prefer a formal approach to doing business. U.S. exporters are advised
to make appointments as far in advance as possible, using e-mail rather than telephone and fax. It is
important to carry business cards (meishi) to every engagement and present them formally with two
hands. Decision making takes time in Japan so prepare for negotiations which may require several
meetings to reach an agreement. Japanese buyers will likely request very detailed information on
ingredients, production processes, and quality controls.
Consumer Preferences
There is a wide variety of consumer preferences in Japan. In general, Japanese consumers place high
importance on food safety and quality. Many domestic producers emphasize traceability and farm-to-
fork by placing photos of farmers on products packages. Perhaps the most notable difference between
U.S. and Japanese consumer preferences relates to product packaging. Most Japanese homes are much
smaller in size than U.S. homes and have limited storage space. As a result, Japanese food packages are
small and easily storable. Large, bulk packaging is impractical which is one of the reasons why Japanese
consumers spend a higher proportion of their income on food than most other developed nations.
U.S. Agricultural Trade Organizations (Cooperators)
Approximately 40 U.S. agricultural trade organizations (cooperators) have representatives in Japan who
promote U.S. products and help member companies enter Japanese market. The full list of cooperators is
available at www.usdajapan.org/find-a-partner/in-japan.
Section III: Import Food Standards, Regulations and Procedures
Food and Agricultural Import Regulations and Standards (FAIRS) Reports
Each year, USDA Japan publishes Food and Agricultural Imports Regulations and Standards (FAIRS)
reports which describe Japan’s requirements for imported food and beverage products. The FAIRS
Country Report provides information on general food laws and regulations for food additives, pesticides,
packaging and containers, labeling, and other specific standards. The Japan FAIRS Export Certificate
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Report provides information on the required certificates for export to Japan. Additional export guidance
is available at www.usdajapan.org/export-guidance.
Japan FAIRS Country Report
Japan FAIRS Export Certificate Report
Shipping Samples
It is possible for U.S. exporters to send sample products to Japan for buyer consideration. Interested U.S.
exporters are advised to review the following two reports which provide guidance for shipping small-
sized individual samples and outline eligibility requirements for duty free shipments and import
notification exemptions:
Guidance on Shipping Individual Small-Sized Samples to Japanese Buyers
General Instructions for Shipping Product Samples to Japan
U.S.-Japan Trade Agreement
The U.S.-Japan Trade Agreement (USJTA) entered into force on January 1, 2020. Following
implementation of USJTA, nearly 90 percent of U.S. food and agricultural products imported into Japan
are duty free or receive preferential tariff access. USDA Japan has developed a series of product briefs
which provide concise overviews of how USJTA affects certain product groups. The full list of product
briefs as well as other information on USJTA is available at www.usdajapan.org/usjta. Tariff treatment
for agricultural products is searchable on the USDA Agricultural Tariff Tracker and may also be found
in Japan’s Customs Tariff Schedule.
Section IV: Market Sector Structure and Trends
Market Sectors
Retail
In 2022, the total value of all retail food and beverage (F&B) sales in Japan totaled $327 billion. As the
market continues to transition to a post-COVID-19 environment, retailers and food and beverage
manufacturers have implemented broad price increases on most food and beverage products, due to high
inflation. Supermarkets continue to represent the bulk of sales in the retail food market, accounting for
35 percent, with convenience stores, drugstores and internet sales accounting for the rest. For details, see
the USDA Japan Retail Foods Report.
HRI Food Service
In 2022, the total sales from the Japan food service industry increased 14.2 percent, totaling nearly $237
billion, representing consecutive year double digit growth. The recovery in the sector is largely
attributed to the strong rebound in tourism, with visitors to Japan exceeding 10 million, boosting the
recovery in restaurant sales in all categories. Japan’s food service industry will continue to depend on
imported foods, and the United States is well positioned to continue supplying this segment. For details,
see the USDA Japan Food Service HRI Report.
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Food Processing
The industry experienced a 4.1 percent decline in the value of food produced in 2023 compared to 2022,
totaling $182 billion compared to $190 billion in 2022. Production increases were seen in wheat flour,
dairy, processed meats, and sugar categories. The $182 billion food processing industry produces a wide
variety of foods: traditional Japanese, Western, and health-oriented foods for infants and the elderly.
Food processors focus on maintaining market share among traditional product lines while developing
creative and innovative food products to attract consumers. For details, see the USDA Japan Food
Processing Ingredients Report.
Market Trends
Inflation
Following more than two decades of flat or declining prices, the Japanese economy has experienced
sustained price rises over the two years due to global geopolitical factors as well as a significant
weakening of the Japanese yen against the U.S. dollar. Food prices have risen with certain products
rising at double-digit levels. This has helped break the deflationary mindset of consumers. In the past it
was very difficult, if not impossible, for Japanese businesses to raise prices due to potential consumer
backlash. This is no longer the case and consumers have come to expect it. For more details, see Food
Inflation Presents Challenges and Opportunities.
Product Trends
Non-Alcoholic Beers and Low Alcohol Beverages
The non-alcoholic beer market was estimated at 40.1 million cases (337 million liters) in 2021, a record
high. The proportion of people who have consumed non-alcoholic beers at home has been steadily
increasing each year, reaching 77.6 percent in 2022, also an all-time high. The pandemic certainly
played a role as consumers drank more at home and selected healthier options. For more details, see the
USDA Japan Non-Alcohol Beverage Market Update 2023
Seafood
Japan is one of the world’s leading consumers of seafood. In 2023, it imported $13.5 billion of seafood
products, making it the world’s fourth largest importer. Half of Japan’s seafood demand is met by
imports. The United States is the third largest seafood supplier to Japan, specializing in salmon, cod,
pollock, herring, crab, and lobster. Despite seafood consumption declining in recent years, the Japanese
market presents opportunities for unique products such as seafood meal kits, cubed seafood, and sauced
seafood. For details, see the USDA Japan Seafood Market Update.
Fresh Fruit
In 2022 Japan was the world's sixth largest importer of fresh fruit - relying on imports for around one-
third of total domestic supply. The United States was the fifth largest supplier of fresh fruits to Japan
with a 5 percent share of the market. The United States was the leading supplier of lemons and cherries
and the second largest supplier of oranges, grapefruit, and kiwi fruit. Japan was the fourth largest export
destination for U.S. fresh fruit. Declining domestic production has led Japan to become increasingly
dependent on imported fruit and this trend is expected to continue. For details, see the USDA Japan
Fresh Fruit Market Update 2023.
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Fresh Vegetables
Japan's fresh vegetable market is estimated at approximately 14 million metric tons of which around 5
percent comes from imports. The fresh vegetable market in Japan is highly competitive due to shrinking
population and falling per capita vegetable consumption. As the Japanese market is mostly self-
sufficient for fresh vegetables, Japan’s reliance on imports increases mostly on spot basis coming from
temporary domestic supply shortages. In 2023, the United States was the fourth largest supplier of fresh
vegetables to Japan at $52 million and the second largest by volume at 46,309 metric tons. The United
States is the leading supplier of chipping potatoes, chicory, and celery. For details, see the USDA Japan
Fresh Vegetable Market Update 2024.
Section V: Agricultural and Food Imports
Agricultural and Food Import Statistics
Source: Japan Customs
Note: Categories defined using BICO-6, excluding manufactured tobacco
Best High-Value, Consumer-Oriented Product Prospects
Beef and Beef Products
In 2023, the United States exported $1.8 billion of beef products to Japan, making Japan the second
largest overseas market for U.S. beef after South Korea. 2023 imports were down from all major trading
partners. In the United States, drought shrunk the herd size, which lowered beef production and raised
prices. Purchasing with a depreciated yen made beef imports too expensive for many Japanese
importers. Although imports were down dramatically, domestic demand for beef was weak, allowing
importers to meet demand by drawing down perennially high inventories. For more on the Japanese beef
market, see the USDA Japan Livestock and Products Annual Report.
Pork and Processed Pork Products
In 2023, the United States exported $1.4 billion of pork products to Japan, making Japan the second
largest overseas market for U.S. pork after Mexico. Despite inflation’s dampening effect on consumers,
Pork & Pork
Products
14%
Beef & Beef
Products
12%
Processed
Vegetables
12%
Poultry Meat & Prods.
(ex. eggs)
10%
Dairy Products
8%
Fresh Fruit
6%
Wine & Related
Products
5%
Processed Fruit
4%
Bakery Goods,
Cereals, & Pasta
3%
Other
26%
Japan's Imports of Consumer-Oriented Products (2023)
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FAS/Tokyo projects Japan’s pork consumption in 2024 will hold steady from 2023 driven by strong
demand in the retail as well as the food service sector, which continues to benefit from the post-COVID
spike in tourism. Pork has become a staple animal protein for the Japanese diet, especially for home
cooking. It is relatively price inelastic so less affected by inflation, but increasingly consumers favor the
lower-priced cuts of pork. For more on the Japanese pork market, see the USDA Japan Livestock and
Products Annual Report.
Processed Vegetables
In 2023, the United States exported $605 million of processed vegetable products to Japan, making
Japan the second largest overseas market after Canada. Imports increased in 2023 due to the limited
production of domestic vegetables as a result of the unfavorable weather conditions in the summer and
fall 2023. For details, see Record Heat Stifles Japanese Vegetable Production. Demand for frozen food,
including frozen vegetables, in food service and retail is rising. The Japan Meteorological Agency
projects that summer 2024 may also be unusually hot, potentially leading to another shortfall in
domestic production.
Dairy Products
In 2023, the United States exported $389 million of dairy products to Japan, making it the fourth largest
export market. The United States remains as the second largest exporter of dairy products to Japan, after
New Zealand and is the third largest country exporter of cheese after New Zealand and Australia.
Cheese sales slumped in 2022 and 2023 due to rising prices. Domestic prices remain high due to rising
input costs for dairy farmers while imports have slowed due to the weak yen. However, FAS projects
that a rise in demand from the food service sector will help drive a recovery in demand in 2024. For
more on the Japanese dairy market, see the USDA Japan Dairy Products Annual Report.
Tree Nuts
In 2023, the United States exported $328 million of tree nut products to Japan, making Japan the tenth
largest overseas market for tree nuts. United States remain as the top source of tree nuts to Japan with 46
percent share by value. Import volume of tree nuts have dropped in 2023 due to rising prices, but the
demand in the market as healthy snack is expected to continue. For more on the Japanese tree nuts
market, see the USDA Japan Tree Nuts Market in Japan Report.
Section VI: Key Contacts and Further Information
More information, including contact information for all four USDA offices in Japan, is available on
www.usdajapan.org. For a list of relevant Japanese government agencies, please see the Japan FAIRS
Country Report
U.S. Embassy Office of Agricultural Affairs
Phone: +81 3 3224 5102
Physical Address: 1-10-5 Akasaka, Minato
City, Tokyo 107-8420, Japan
Email: [email protected]
http://www.fas.usda.gov
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Appendix I
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