Food manufacturing has revolutionized the Japanese diet, shifting the focus from fresh produce to industrially mass-manufactured goods. Pre-processed ingredients and prepared meals have grown popular as convenient and time-saving products in Japan, especially among young consumers and dual-income households. This trend underlies the growth of the food manufacturing industry, which accounts for 40 percent of the
. Small-sized businesses form the foundation of the industry, which also play a major role as contract manufacturers of
. However, besides being an industry that birthed many opportunities for sustainable food production in Japan, it also reflects social and economic challenges.
The shift from processing to manufacturing
The
food manufacturing industry is split into three main segments that supply the Japanese market with a range of minimally processed foods (primary processing) to ready-to-eat meals optimized for convenient consumption (tertiary processing). Primary processing was a staple of the food industry in the past, carried by the importance of fresh and raw ingredients in food education and the economic significance of the agriculture and fishery industries. Amid a shift in lifestyle and
eating habits, secondary and tertiary processing which revolves around the manufacturing of processed foods like baked goods, sauces, and
convenience foods are dominating the food industry. However, the downside of these convenient food products is their impact on the
state of health in Japan. The consumption of heavily processed foods encouraged by a dynamic FMCG market is a common cause of an unbalanced diet rich in sugar, salt, and fats. While the Japanese government encourages the development of food technology to support a sustainable and healthy food industry, barely one percent of sales is reinvested into research and development.
Challenges in food manufacturing
The agriculture and fishery industries provide the raw ingredients for domestic food manufacturers, but the shrinking output in the aging society forces manufacturers to look overseas for not only the procurement of produce and semifinished products but also to expand sales channels. Even though manufactured goods account for more than half of
food expenditure in Japanese households, the shrinking population limits growth opportunities. While direct production at overseas facilities was a common strategy for expansion, especially in Asian markets, the reduction of tariffs through bilateral trade agreements and the weak yen encouraged
exports of processed foods from domestic facilities. At the same time, the necessity of importing food to satisfy industry and consumer demand raises concerns about quality and safety. To increase transparency and raise trust, manufacturers are increasingly integrating
food traceability systems into their processes and clarifying the origins of their products on product labels.
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