No.2630
01/27/2021
Organic Processed Food Market in Japan: Key Research Findings 2020

Domestic Organic Processed Food Market Projected to Grow at 3.2% CAGR from FY2015 to FY2019

Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic market of organic foods, and found out the market trends, the trends at market players, and the future perspectives. This press release announces the size of organic processed food market. 


Transition and Forecast on Organic Processed Food Market
Transition and Forecast on Organic Processed Food Market

Market Overview

Domestic market of organic processed foods has been growing at 3.2% CAGR from FY2015 to FY2019, and it is expected to reach 134,571 million yen by FY2019 (based on the retail price). 
Market growth in FY2019 is attributed to the rise of ‘at-home consumption’ and ‘eat at home’ in year-end during COVID-19 calamity, but also to expansion of total sales floor, including increasing number of specialty stores dedicated to organic/natural foods since around FY2017 and general supermarkets selling organic foods (farm produce and processed foods). 
Moreover, channel of organic food sales is expanding in e-commerce. For instance, major e-commerce marketplaces such as Amazon and Rakuten have allocated specialized websites for organic foods, and newcomers starting dedicated e-commerce sites are emerging one after another.

Noteworthy Topics

Impact of COVID-19

Influence of COVID-19 on the organic food market should be discussed separately on procurement side and on sales side. In brief, it had more negative effects on procurement, while it had positive and negative impact on sales. 
On procurement side, supply chains fell into chaos during global pandemic. While organic processed foods distributed in Japan includes many imported products, supplies to Japan run short or run out at exporters as pickup services and shipments were held up in the Western countries due to imposition of lockdown, and at-home consumption of their home countries increased. Although the shortage continued around March to May 2020, it got back to normal mostly by July. 
On the other hand, on sales side, though organic processed foods for home use was sold well owing to the rise of at-home consumption, demand for business use declined as food service industry like hotels and restaurants struggled.

Future Outlook

The organic processed food market is projected to grow by 2.9% CAGR from FY2020 to FY2024. The forecast is based on an assumption that the Tokyo Olympic and Paralympic Games postponed due to COVID-19 will be held in 2021 as scheduled. 
In FY2020, special demand increased for processed foods for home-use especially during the declaration of state emergency, and it also multiplied demand for organic processed foods, including products that have longer shelf-life such as dried noodles, pastas, olive oil and retort foods, agricultural products like canned tomatoes, and frozen vegetables. As an overall trend of eating at home continued even after the declaration was lifted, some companies are enjoying sales that exceeds their performance in the previous fiscal year. Given that the Tokyo Olympic and Paralympic Games will be held in 2021 as scheduled, consumption assuming the hosting of Olympics is projected to grow toward the end of FY2020, and such trend accelerates market growth with increase of related spending in FY2021. 

Research Outline

1.Research Period: August to October 2020
2.Research Object: Manufacturers of organic processed foods, trading companies/distributors, retailers, ready-to-eat businesses and restaurants
3.Research Methogology: Face-to-face interviews by the expert researchers, telephone research, and telephone questionnaire with retailers, ready-to-eat businesses, and restaurants

What is the Organic Processed Food Market?

The organic food market in this research indicates the market of organic processed foods, including liquor, beverages, processed meat, processed farm products, noodles, condiments, frozen foods, and other processed foods (retort pouched food, confectionery/desserts, cereals, supplements, etc.). The market size is calculated based on the retail price.

<Products and Services in the Market>

Organic processed food market includes: liquor, beverages, processed meat, processed farm products, noodles, condiments, frozen foods, and other processed foods (retort pouched food, confectionery/desserts, cereals, supplements, etc.).

Published Report

Report Title

Contact Us

©2019 Yano Research Institute Ltd. All Rights Reserved.
The copyright and all other rights pertaining to this report belong to Yano Research Institute.
Please contact our PR team when quoting the report contents for the purpose other than media coverage.
Depending on the purpose of using our report, we may ask you to present your sentences for confirmation beforehand.