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The Channel market value (OSP) of the foodservice industry in Japan (2020 - 2028, USD million)

Industry: Foodservice
Current: Market Sizing & Shares

The Channel market value (OSP) of the foodservice industry in Japan reached USD 183,816.56 million in 2023
The indicator recorded a historical growth (CAGR) of 2.62% between 2020 to 2023 and is expected to grow by ...
GlobalData projects the indicator to grow ...

The Channel market value (OSP) of the foodservice industry in Japan (2020 - 2028, USD million)

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Japan foodservice market analysis

The overall value of the Japanese foodservice profit sector declined from 2015 to 2020. The decline in the Japanese foodservice profit sector was due to the reduction in the number of transactions in 2020, as a result of the pandemic. The prolonged closure of various businesses, along with the fear of COVID -19 infections, impacted consumer visits to HoReCa outlets. In the coming years, profit sector channels will register a strong rebound in the number of transactions, which will support sales growth. With the return to normality, dine-ins will continue to dominate foodservice channels in Japan.

Quick service restaurants: The QSR channel is popular among younger consumers, while middle-aged groups also form a considerable share of its frequent visitors. Different age groups have various factors that they find appealing. While younger consumers in the 16–24 years age group are more likely to find unique/exciting flavours appealing, older consumers aged 35–44 years are more likely to find convenience to be a more appealing factor, doorstep deliveries and takeaways played a key role in the growth of transaction volumes within the channel.

Full-service restaurants: FSR is the largest channel in the Japan profit sector. FSR recorded a sharp contraction during the review period. The surge in COVID-19 infections throughout the year, along with limited operational activities across takeaways and online deliveries at restaurants, restricted channel sales during 2020. With the easing of restrictions and speedy vaccination programs, consumers will shift back to their pre-pandemic buying habits. The market remained fragmented and dominated by independent operators, which generated more than half of the value in the channel in 2020.

Coffee & tea shop: The coffee & tea shop channel registered a sharp sales decline during 2015–2020. However, the channel is projected to recover by 2025, primarily due to the rise in the number of transactions and average transaction prices. Major operators such as Starbucks are aiming to improve their environmental footprint through the introduction of reusable straws and cups to boost consumer engagement. As consumers are increasingly becoming aware of the environmental impact of plastic waste.

Pub, club & bar: The pub, club & bar channel was the third-largest channel after the QSR and FSR channels. The channel struggled to remain open during the crisis due to government-ordered restrictions, which in turn resulted in the bankruptcy of several bars across the country. Post-pandemic, operators are likely to offer innovations in the channel by introducing low/no-alcohol variants, in line with the growing demand for healthier beverages. This trend offers new opportunities for the channel in the coming years.

Channel future growth highlights

The travel channel is projected to register the highest transaction growth among all channels during 2020–2025. The Japanese government’s support for improving tourism is likely to boost revenues across the channel. For instance, the introduction of the "Go To Travel" campaign since July 2020 aims to boost domestic tourism in the country. The mobile operator channel is projected to lead the profit sector in terms of outlet growth. Channels such as accommodation and leisure will continue to gain significant transactional growth due to their wide presence across urban spaces.

Operator selling prices (OSP) represent the amount that the consumer spends on food and drinks in foodservice channels, once the foodservice operator has added on any fees and levies, and their margin. This is often known as “retail sales equivalent” and represents the end value of the foodservice market.