Market Overview

The market size of Japanese and Western-style confectionery and desserts for FY2022 as a total of Japanese confectionery, Western-style confectionery, desserts (yogurt, custard pudding, jelly, or other chilled desserts) and frozen desserts (ice creams, other frozen snacks) was estimated at 2,266,600 million yen (based on the shipment value at manufacturers), up by 5.0% from the previous fiscal year. Considering that this is down only by 0.7% from that of FY2019, and that some companies presented a decline in sales stemming from the implementation of Accounting Standard for Revenue Recognition for FY2021, we can assume that the market has recovered to the pre-pandemic level.

Although the influence of the pandemic continued in the first half of FY2022, a gradual recovery in the people’s flow including tourists from overseas in the second half of the fiscal year revived the demand for visiting gifts and souvenir sweets. Despite the price rises at many companies due to the high cost of raw materials, its negative impact on sales remained minimal. On the other hand, Japanese and Western-style sweets and desserts that are widely distributed at mass merchandisers like supermarkets and purchased by consumers for themselves showed a reactionary decline from ‘at-home spending hike’ during the pandemic.

Noteworthy Topics

Sales Channel Trends

The Japanese and Western-style confectionery and desserts market for FY2022 by composition ratio per sales channel were as follows: department stores 17.0%, specialty stores & free-standing stores (including specialty stores within shopping centers) 6.4%, mass-merchandisers 37.3%, convenience stores 19.1%, in-station stores & station buildings 3.6%, airports 1.7%, highway parking area & service area 0.8%, mail order 5.0%, and others (including corporate demand) 9.1%.

Composition ratio of department stores and transit hub channels (such as in-station stores, station building, and airports) turned for the better in FY2022 from notable declines in FY2020 and FY2021 due to shrinkage of the gift demand.

Future Outlook

The size of Japanese and Western-style confectionery and desserts market for FY2023 is forecasted at 2,363,900 million yen, up by 4.3% from the previous fiscal year (based on the shipment value at manufacturers).

For FY2023, in addition to a steady demand for visiting gifts among domestic tourists, business travelers, and those on homecoming trips, a rapid increase in the number of foreign tourists visiting Japan is providing tailwinds for the Western-style confectionery market in particular. Although prices have been raised in a wide range of categories, the recovery in people’s flow is impacting the market more in a favorable way, particularly on confectionery and desserts sold by manufacturing retailers.

Meanwhile, as consumers are becoming thriftier against the backdrop of increase in prices, the market environment of so-called 'widely distributed confectionery and desserts', which are sold at stores like supermarkets and purchased by consumers for themselves or for their families, continues to be tough.

Research Outline