Japan Foodservice Market - Growth, Trends, Covid-19 Impact, and Forecast (2023 - 2028)

Japan Foodservice Market - Growth, Trends, Covid-19 Impact, and Forecast (2023 - 2028)

The Japanese foodservice market is projected to witness a CAGR of 0.84% during the next five years.

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. Consumers these days are very conscious of their food. The market is growing because consumers require more time to cook and eat. Therefore, the culture of ready-to-eat food and convenience food is growing in the region. Also, the market players and foodservice restaurants make food according to consumer preferences, prompting people to dine out.

The Japanese people are very much fascinated by foreign cultures and food, and they demand food from different origins, which is why the market is expected to grow over the medium term. The number of working women is increasing in Japan, and cooking meals after coming home from work may be stressful, so either dining out or ordering food online are the best options for them. Market players are also working toward consumer needs. For instance, in May 2021, Starbucks announced that its Starbucks Delivers service, which offers customers the Starbucks Experience outside of its retail locations, will be expanded to more than 750 outlets in Japan.

The Japanese food industry is expected to witness significant growth in the medium term while increasing its contribution to the world food trade every year. Young people are mostly tech-savvy, constantly exposed to global trends and lifestyles, well-informed, travel widely, and have high spending power. Hence, they drive the growth index of restaurants and the foodservice market. The market players are looking for opportunities to establish their stores near schools, colleges, and universities, as catering to younger people can drive the growth of these companies. The market players also aim to reduce carbon emissions and open environmentally friendly stores. For instance, in May 2022, Starbucks Japan opened a new drive-through store in Togane city, Japan. The store is certified as a green store in Japan.

Tourism in Japan has increased since the pandemic, and the number of international visitors has increased since last year. According to the Japan Tourism Statistics data, 1,610,900 overseas visitors arrived in Japan between January and September 2022. The number of tourists that visit every year is actively seeking traditional authentic Japanese cuisines, primarily sushi, along with a great dining experience, which is one of the major factors driving the growth of full-service restaurants in the country.

Some of the popular full-service restaurants include Sushi Sho, Shiseido Parlour, Ponchi-ken, Seirinkan, Les Chanterelles, Ise Sueyoshi, Tenoshimam, Nanzenji Hyotei, and Natives Restaurant & Patio. French restaurants have always been popular in Japan, and more recently, Italian and Spanish restaurants have also grown in popularity. Mexican restaurants, which are still fewer in number, are slowly growing in popularity. They provide opportunities for US exporters of items such as tortillas, frozen guacamole, and related Tex-Mex ingredients.

The Japanese foodservice market is highly competitive, with a major market share held by prominent players, such as McDonald’s Corporation, Yum! Brands Inc., Zensho Holdings Co. Ltd, Skylark Group, MOS Food Services Inc., and Yoshinoya Holdings Co. Ltd. The Japanese foodservice market is highly competitive and is mostly dominated by local players. The key players are embarking on mergers and acquisitions as key strategies to achieve consolidation and optimize their offerings. Moreover, these players merge with local players to gain dominance in the local markets.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support