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Japan Foodservice Market - Growth, Trends, and Forecast (2020 - 2025)

Japan Foodservice Market - Growth, Trends, and Forecast (2020 - 2025)

  • June 2020
  • 105 pages
  • ID: 5917983
  • Format: PDF
  • Mordor Intelligence LLP
Up to $975 off Until Aug 10th 2020

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Japan foodservice market is projected to witness a CAGR of 2.90% during the forecast period 2020 - 2025.

- The Japanese foodservice market is primarily driven by the increasing frequency of dining out, amid time-pressed schedules and the growing influence of cross-culture dietary patterns, due to the strong presence of foodservice providers offering Japanese, Korean, ethnic, and western cuisines.
- Japanese consumers, in general, tend to be highly demanding, putting great emphasis on quality and branding and are willing to spend more resources on value-added products. The latest trend in Japanese foodservice includes listing calories on the restaurants’ menu. Connected to this overall trend, strong attention has been paid to the sugar content, and products with lower sugar content are considered healthier, which is expected to drive the market forward.

Key Market Trends
Inclination toward the American and Western Cuisine

The variety of restaurants and menu items available in the Japanese food service continues to expand in the country, as Japanese consumers are interested in trying a new and vast variety of cuisines, which are available at their convenience in Japan. Food from Europe, Asia, Australia, and the Americas are becoming increasingly popular, partly due to a large number of Japanese traveling abroad every year (17.9 million in 2017, as per the USDA report). Moreover, consumers have access to media and the internet, exposing them to various international products, activities, and lifestyles. Apart from this, Japan is also experiencing rapid growth in the tourism industry, which, in turn, is profitable for international foodservice brands in the country. For instance, 31.2 million foreign tourists came to Japan, in 2018.

Full-Service Restaurant Holds the Largest Market Share

Owing to high commercial earning and steady growth of employment in Japan, consumers have a preference to dine outside. The Japanese food industry produces a variety of foods, like traditional Japanese food, international food, and health-oriented food for all demographics. The frequency of dining outside is different for both the genders, as male consumers visit all types of full-service restaurants more frequently than females consumers. Whereas, the age of the consumers also affects the market, as 18-24 year old population claimed the highest average monthly dining-out frequency, followed by the 25-34 year old population. Fast food, Cafe and Bar, and 100% Home Delivery Restaurants can lead to being a threat to full-service restaurants in the coming future.

Competitive Landscape
Japan foodservice market is highly fragmented and it is mostly dominated by the local players. The key players are embarking on merger and acquisition as one of their key strategies to achieve consolidation and optimize their offerings. Moreover, these players merge with local players, to gain dominance in the local markets. For instance: In January 2018, Yoshinoya Holdings Co, Ltd has opened its Tokyu Chuorinkan Station Store that falls in line with its expansion strategy. Some of the major players in the market studied are McDonald’s Corporation, Yum! Brands Inc., Zensho Holdings Co Ltd, Skylark Group, and Yoshinoya Holdings Co Ltd.

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