Why this is important to Wisconsin: Wisconsin companies in the food industry may be able to take advantage of the increasing demand.
Japan is a high-income, highly urbanized country with diversified manufacturing, but it depends on imports for a majority (62%) of its food supply.
The U.S. traditionally provides the largest share of agricultural and food products to Japan. In 2022, that amounted to $16.4 billion, or 17% of Japan’s consumer-oriented, food-related imports, according to the U.S. Department of Agriculture’s Global Agricultural Information Network (GAIN). The next three leading suppliers were China, Thailand, and Australia.
Five types of food that are seeing the biggest growth in popularity in Japan were confectionary products, dairy products, eggs, beef, and wine, the GAIN report said.
The value of Japan’s food imports jumped 40% from 2020 to 2023, largely because of the weakness of the yen, according to Nippon.com.
In addition, Japan’s farm economy is shrinking. Fewer than 1.2 million people were engaged in farming in 2023, about half as many as 20 years earlier, Nippon.com said. The average age of farmers in Japan is 68.7, while only 10% of farmers, or 133,000, are under 50 years old.
As Japan’s birth rate declines, the country’s older residents are constituting a bigger share of the population. As of December 2023, 29% of the population was at least 65 years old, and that share is expected to reach 35% by 2040, according to the GAIN report. Japanese life expectancy is among the highest in the world, at 87 for women and 81 for men.
Due in part to the aging population, consumers are seeking more healthy and functional food, especially with high protein content.
Japan is the world’s second-largest market for U.S. beef, pork, and dairy products, and the third-largest importer of U.S. seafood, GAIN reported.
Japan’s food and agribusiness sector is very competitive, and trade shows are considered a good way for companies to gain exposure to the marketplace. The Supermarket Trade Show in February and FOODEX in March are two of Japan’s largest annual food-related trade shows.
As imports continue to rise, Wisconsin companies with food or agricultural products may find opportunities in Japan.
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