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.

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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.”

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