Companies are focusing more on novel and unique flavors which will appeal to a larger audience, without compromising on convenience and versatility. Driven by these novelties, Japan seasonings, dressings & sauces market is projected to grow from JPY2,093.8bn ($19.9bn) in 2021 to JPY2,242.9bn ($24bn) in 2026 at a compound annual growth rate (CAGR) of 1.4%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Japan Seasonings, Dressings and Sauces Market Size by Categories, Distribution Channel, Market Share and Forecast, 2021-2026’, reveals that the market growth will primarily be driven by the tomato pastes & purees category, which is forecast to register the fastest value CAGR of 3.6% during 2021–2026. The category is followed by dry cooking sauces which is expected to record a CAGR of 2.0% during the same period.

Vishakha Rastogi, Consumer Analyst at GlobalData, says: “The Japanese seasonings, dressings & sauces market has witnessed a spate of innovations since in-home consumption increased during the COVID-19 lockdown. Consumers are seeking health claims such as free from artificial colors, reduced sugar, and salts. Eco-conscious consumers are also looking for sustainable, reusable, compostable and recyclable packaging.”

‘Hypermarkets & supermarkets’ was the leading distribution channel in the Japan seasonings, dressings & sauces market in 2021, followed by convenience stores, and e-retailers.

The per capita expenditure on seasonings, dressings & sauces in Japan increased from $46.9 in 2016 to $78.4 in 2021 and is expected to reach $97 in 2026 — far above the regional average of $9.1, and the global average of $13.8.

​Ajinomoto Group, Kewpie Corporation, and Kikkoman Corporation were the top three companies in the Japan seasonings, dressings & sauces market by value in 2020, and Ajinomoto and Kewpie were the leading brands.

Rastogi concludes: “Some of the habits acquired during the initial pandemic lockdown such as home cooking will stick for the immediate future. However, instead of spending hours in cooking meals from scratch, time-poor and convenience-driven Japanese consumers are embracing time and effort saving products such as meal kits, ready-to-cook foods, and seasonings, dressings & sauces.

“Consequently, the demand for both traditional, western, and novel products will continue to increase steadily in the coming years, with consumers prioritizing brands/labels that offer high quality and value-for-money.”