No.2465
07/21/2020

Health-Foods/Functional-Foods Material Market in Japan (24 Materials): Key Research Findings 2020

Yano Research Institute (the President, Takashi Mizukoshi) has conducted a study on the market of materials (raw materials) for health foods and functional foods, and found out the trends by material, the trends of market players, and the future perspectives.


Market Size Transition of Materials for Health-Foods/Functional-Foods (24 Materials)
Market Size Transition of Materials for Health-Foods/Functional-Foods (24 Materials)

Market Overview

The market size of materials for health-foods and functional-foods (total of 24 selected materials for this research) for FY2019 grew by 3.8% from the previous fiscal year to attain 91,386 million yen, based on the shipment value at manufacturers/trading companies. As the circulation amount of 26 materials, with equal and green barley added to the 24 materials, totaled 15,472.7 tons (1.6% growth increase from the previous fiscal year), it indicates the expansion in both circulation amount and shipment value.

In addition to the stable growth of health foods market which is the typical application of health-foods/functional-foods materials, consumer health-consciousness drove development of general food products with health as added-value. Moreover, circulation amount increased for materials preventing sarcopenia (locomotive syndrome) and cognitive decline due to aging, and the market of health-foods/functional-foods materials for improving QOL (Quality of Life) of middle-aged and elderly also grew steadily. However, the market is projected to face predicaments for FY2020 due to COVID-19 pandemic. 

Noteworthy Topics

Trends of Health-Foods/Functional-Foods Materials amidst Coronavirus Pandemic

Due to COVID-19 pandemic, materials for health-foods/functional-foods which are assumed to boost immune system are selling well. Some company sold as much as 3 to 4 months’ worth of “Propolis” within a month from the outbreak. Other than propolis, inquiries and RFQs have been increasing for materials which are considered beneficial to improve immune system or antiviral function, such as “edible bird nest”, “echinacea”, and “oryza polyamine”.


On the other hand, some materials are on the decline amidst COVID-19 pandemic.


With no-drinking trend (a.k.a. sober-curious) among younger generations and people having less chance to drink on the go, sales is on the fall for “curcuma (ukon/turmeric)” and “liver hydrolysate”, the materials known as enhancer of hepatic function, and for “placenta” specifically for recovery of liver function. 


Furthermore, due to issues in production and procurement, severe stagnation is anticipated for supplies of “lutein”, “glucosamine”, and “bovine collagen peptide”. 


Since China and India accounts the most for producing marigold, a raw material of lutein, lockdown (city-wide lockdown) is assumed to impact production. A surge in raw material price is expected after next year.


For glucosamine, reduction in raw material supplies are partly seen, as both domestic and overseas user companies have lowered utilization of their food factories. Unstable supply of bovine collagen peptide is anticipated as leather industry is in the decline due to downturn in the global economy. Decrease in the use of cowhide may lead to short supply of bovine-derived collagen peptides further. 

Future Outlook

Domestic health-foods market is projected to sustain moderate growth hereafter. However, competition among material suppliers are expected to become fiercer in the health-foods/functional-foods material market; for raw material suppliers, in particular, development of new materials and new distribution channels will be critical challenges. 


Against a backdrop of health consciousness among consumers especially middle-aged and elderly, further growth in general food applications are expected for health-foods/functional-foods materials. It is assumed that the key for market expansion is usefulness of health-foods/functional-foods materials for production of general foods field (i.e. price, processing suitability, etc.) and capability of suppliers to make propositions in development of general food products.

Research Outline

1.Research Period: April to June 2020
2.Research Object: Suppliers of materials for health-foods and functional-foods(manufacturers, trading companies)
3.Research Methogology: Face-to-face interviews by the specialized researchers, interviews via telephone/email, and literature research.

Health-Foods/Functional-Foods Material Market in Japan

Materials for health-foods and functional-foods in this research refers to 24 selected materials: Ginkgo Biloba (Ichoha), Curcuma (Ukon/Turmeric), HMB (3-Hydroxy 3-MethylButyrate), L-Carnitine, Chitin/Chitosan, Glucosamine, Mulberry Leaves, Collagen, Ceramide, Soybean Isoflavone, DHA/EPA, Saw palmetto, Hyaluronic acid, Placenta, Black Ginger, Blueberry (Bilberry), Propolis, Heme Iron, Maca, Pinewood bark Multivitamins, Lactoferrin, Lutein, Resveratrol, and Royal Jelly. Market size is based on the shipment value at manufacturers and trading companies.


The market size is also estimated by circulation amount for 26 materials (in tons), adding Equal and Green Barley to 24 materials above.

<Products and Services in the Market>

Ginkgo Biloba (Ichoha), Curcuma (Ukon/Turmeric), HMB, L-Carnitine, Chitin and Chitosan, Glucosamine, Mulberry Leaves, Collagen, Ceramide, Soybean Isoflavone, DHA/EPA, Saw palmetto, Hyaluronic acid, Placenta, Black Ginger, Blueberry (Bilberry), Propolis, Heme Iron, Maca, Pinewood bark Multivitamins, Lactoferrin, Lutein, Resveratrol, Royal Jelly

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