Products Baked in Japan: a Competitive Landscape

Bread is gaining ground on Japan’s tables, alongside the traditionally favoured rice. The consumption blend has given way to the emerging of the rice bread. This and many other unique end products make Japan a bakery market with many prospects ahead, TechNavio analysts find.

Japan is becoming an increasingly interesting country for global bakery industry players; and with good reason, as Asia Pacific Baker learns from TechNavio research analysts. Even more so, the sector is advancing uniquely by merging western influences with traditional staple products. Each aspect of the cautiously growing market is researched in detail and helps TechNavio draw the following forecasts:

APB: What is the overall market size of bakery products, and what is the growth rate in Japan?

Japan is one of the top 10 countries in the world that have high potential as markets for bakery products in the near future. Other leading countries are India, China, France and the US (not in order of ranking). The current market in Japan (as of 2014) is valued at USD 34.5 billion, and is expected to grow at a CAGR of 0.5 per cent between 2014 and 2017.

APB: Which are the main end product ranges (general categories compared with locally specific products) by sales volume?

The bakery market in Japan can be segmented on the basis of the following product ranges: Bread and Bread Substitutes, Biscuits, Cakes, Pastries, Other Baked Goods, and Breakfast Cereals. Some of the products in demand in the market are rice bread, crispbread, biscuit sandwiches, wafers, sweet biscuits, waffles, gingerbread, toasted bread and rusks.

APB: How has consumption per capita evolved over the past few years for bread, in comparison with other bakery products?

In 2014, per capita consumption of bread was around 10.5-11 kg per annum in Japan. Japan is known for its consumption of rice; however, the country’s food habits are evolving to make way for convenience foods such as bread. Rice bread is gaining an increased market share in the country because of the traditional significance of the rice and the nutritional value and soft texture of the bread.

APB: Which types of products classify as new entries in the market? What is their recent sales evolution and marketing approach?

Breakfast cereal is an upcoming product category as people are becoming more health-conscious and aware of the benefits of these products. Consumers buy these products for their high fiber content and convenience. In 2013, the Breakfast Cereals segment experienced a value increase of nearly 7.8 per cent; the segment is expected to grow at a CAGR of 5 per cent during 2012-2017. Certain product categories such as sandwich biscuits have been around for a couple of years; vendors are now bringing out innovative customized biscuits especially for women. Cereal variants, such as those topped with different types of dried fruits, are also picking up as a category.

You can read more in our latest issue of Asia Pacific Baker!