Health and functional foods market in Japan - statistics & facts
Deregulations in the Japanese health foods market in 2015 have propelled the market on a growth trajectory with the addition of functional foods as a distinct category. However, the market attracted widespread media attention in March 2024, following reports of fatalities linked to supplements containing rice fermented with red yeast (beni koji) by Kobayashi Pharmaceutical. While foods with function claims emerged as a driver of the health foods market, the scope of the incident pushed the risk of contamination to the center of consumers’ food safety-related worries.
However, the food incident involving the beni koji supplements highlighted the risk of the relaxed regulations to consumers, putting functional foods and dietary supplements to the test. As initial reports related the cause of health issues to the supplements themselves instead of contamination with foreign matters, the market is in the focus of consumers and authorities. Health foods manufacturers will have to convince consumers of both – their products’ efficacy and safety while avoiding misleading advertising.
Foods with health claims
Foods with health-promoting claims encompass “foods for specified health uses” (FOSHU), “foods with nutrient function claims” (FNFC), and foods with function claims. FOSHU is what was initially known as health foods in Japan, which require governmental review of efficacy and safety to bear health claims. In contrast, FNFC products focus on the promotion of a limited list of pre-approved ingredients, including 17 vitamins and minerals. The high costs for FOSHU applications and the limitations of FNFC products deterred development in the market until the introduction of functional foods. The segment garnered manufacturers’ interest, with over one thousand products registered as health foods with function claims annually. Under the new system, businesses can label their products with function claims based on scientific evidence without needing governmental review as in the case of FOSHU, with promoted ingredients including fatty acids, antioxidants, and other nutrients. However, the responsibility for products’ safety remains with manufacturers after submitting the required information to the Consumer Affairs Agency.Eating habits and health awareness
Japan’s society is aging, and national medical expenditure is rising. As the desire for natural and health-beneficial foods is growing, the health and functional foods market is shifting into the focus of consumers and businesses. The traditional Japanese diet is considered well-balanced and healthy, but the share of consumers regularly eating balanced meals is declining. Foods with health claims are in demand to supplement lacking nutrients, with older consumers being the core target groups.However, the food incident involving the beni koji supplements highlighted the risk of the relaxed regulations to consumers, putting functional foods and dietary supplements to the test. As initial reports related the cause of health issues to the supplements themselves instead of contamination with foreign matters, the market is in the focus of consumers and authorities. Health foods manufacturers will have to convince consumers of both – their products’ efficacy and safety while avoiding misleading advertising.
