Market Overview

The domestic organic food market size by retail amount in FY2024 (as a total of farm produce and processed food) is estimated at 240,300 million yen, up by 2.6% from the preceding fiscal year. Market growth was driven by increased at-home spending and heightened health consciousness during the COVID-19 outbreak in 2020, with this momentum continuing into FY2021. In FY2022, however, inflation in Western countries—stemming from global geopolitical developments—combined with the depreciation of Japanese yen, led to a sharp rise in import costs and, consequently, higher retail prices. As the competitiveness of imported products over domestic alternatives eroded, market growth decelerated.

Prices for both domestic and imported products have continued to rise, resulting in higher revenues for companies. However, growth in sales volumes has been slowing. In FY2025, the industry faced additional pressure as consumers became increasingly cost-conscious, particularly following price hikes for staple items such as rice and vegetables in the spring and summer. While consumers who favor organic foods tend to prioritize value over price and are therefore less sensitive to price increases, signs of spending restraint have nonetheless emerged. For instance, some consumers are maintaining purchases of organic fresh produce while shifting to conventional options for processed foods.

Noteworthy Topics

Over 150 Municipalities Joined Organic Village Program

The Ministry of Agriculture, Forestry and Fisheries (MAFF) is promoting community-based organic agriculture through the “Organic Village” initiative*. The initial target of securing participation from 100 municipalities by 2025 was achieved ahead of schedule. As of December 26, 2025, a total of 154 municipalities had joined the program, including 131 by the end of FY2024 and an additional 23 in FY2025, with participation continuing to expand.

Municipal initiatives under the program vary widely, ranging from support for organic production and processing to distribution, sales promotion, and public awareness activities. Production-related measures include the establishment of organic farmer training programs (so-called ‘organic school’) and the introduction of organic agriculture courses at universities with agricultural science faculties.

By contrast, many municipalities continue to lack Organic JAS-certified processors and factories, despite the critical role that processing and distribution play in connecting producers with consumers. Reliance on certified processors located outside the region increases transportation costs and undermines the competitiveness of locally produced organic products. Addressing this structural constraint will be essential for the nationwide development of organic agriculture.

*”Organic Village” is a term describing a community that promotes organic agriculture. The initiative aims to establish an integrated supply chain for organic agriculture by engaging stakeholders across the community. Key measures include the consolidation and enlargement of farmland plots to improve farming efficiency, productivity, and mechanization, as well as the introduction of organic food in school meal programs.


Source：MAFF (the website below is available in Japanese only)
https://www.maff.go.jp/j/seisan/kankyo/yuuki/organic_village.html

Future Outlook

The domestic organic food market (as a total of farm produce and processed food) is projected to grow to 259,190 million yen by FY2028, up 7.9% from the size of FY2024. It is expected to grow moderately at a CAGR of 1.9% between FY2024 and FY2028.

Research Outline