13 Feb 2020
Posted in Consumer
Japanese dairy & soy food market is forecast to be worth US$23bn by 2023, says GlobalData
Rising domestic consumption backed by strong economy has contributed to the growth of the Japanese dairy & soy food sector, which is forecast to grow from JPY2,084.8bn (US$18.7bn) in 2018 to JPY2,396.6bn (US$23.1bn) by 2023, at a compound annual growth rate (CAGR) of 2.8%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Japan Dairy & Soy Food – Market Assessment and Forecast to 2023’, reveals that cheese was the largest category with value sales of JPY513.3bn (US$4.6bn) in 2018. The category is also forecast to register the fastest value growth at a CAGR of 4.3% during 2018–2023, followed by yogurt (3.9%).
Sneha Singh, Consumer Analyst at GlobalData, says: “With increasing disposable income, consumers are looking for more nutritious dairy & soy food products. The demand is likely to grow further, fueled by the growing Japanese economy.”
The value share of Japan in
the global dairy & soy food sector is expected to increase from 3.9% in
2018 to 4.1% by 2023. However, the country’s share at regional level is expected
to decrease marginally by 0.8% during the next five years.
The report also states that Meiji Holdings Co Ltd, Megmilk Snow Brand Co. Ltd. and Morinaga Milk Industry Co. Ltd. are the leading market players in the Japanese dairy & soy food sector. These top three companies offer products in the butter & spreadable fats, cheese, cream, dairy-based & soy-based desserts, drinkable yogurt, milk and yogurt categories.
Private label penetration remains low in the Japanese dairy & soy food sector at 2.6% in 2018. However, private label products are growing at a higher CAGR than branded products. Singh concludes: “‘Naturally healthy’ and ‘free-from’ are forecast to remain the key health and wellness attributes in the next five years, as consumer demand for ‘all natural’ and ‘fat-free’ dairy products continue to grow in the Japanese dairy and soy food sector.”