Opportunities in Japan’s food processing ingredients sector reported by USDA

According to USDA/FAS’s annual report on Japan’s Food Processing Ingredients sector, confectionary products, condiments/sauces and whisky (rye or bourbon) are among top prospects for manufacturing using U.S. ingredients.

The report also notes key market drivers for the Japanese food-processing sector include:

• Continued diversification of diet: Increased demand in pre-prepared foods
• Heightened consumer and retailer food safety concerns
• Increasing interest in health and functional foods with an emphasis on the needs of the aging population
• Reduced or cheaper inputs to include international processing options to maintain competitive prices.

Regarding U.S. competition, the report states that Japan’s soybean imports are primarily from the United States on a value basis, with market share of approximately 70 percent. Brazil and Canada are the main competitors for food-grade soybeans.

For those new to the market, Japanese manufacturers have a reputation for demanding very high standards of product quality and consistency, while also having a reputation for working collaboratively with suppliers to develop long-term supply relationships. Despite the work involved, the Japanese market has enormous potential.

Full report.