Organic food market in Japan - statistics & facts
“Organic food” is a trend word tied to healthy eating in Japan, which pushes the segment’s visibility in the food market while hampering segment growth due to a lack of understanding of terminology. Since the establishment of guidelines and the stricter enforcement of regulations by the Ministry of Agriculture, Forestry and Fishery (MAFF) in 2000, the scope of food products that can be marketed with the “Organic JAS” certification expanded from plant-derived foods to animal-derived products, carried by the strong organic processed food market. In 2022, alcoholic beverages were included in this definition, which opened new opportunities for domestic manufacturers. However, the strong impression of organic foods as part of the health foods market has obscured the meaning of “organic” as consumers struggle to understand the criteria and benefits of certified products.
The volatile production amounts limit the scope of distribution to the domestic market, with only around three thousand tons of organic food exported overseas. To broaden supply chains and lower retail prices, the Japanese government opened the market to foreign businesses secured by bilateral equivalency agreements. Organic products certified in major trade markets, like the United States, the European Union, and Canada among others, can be distributed under the Organic JAS system.
On the other side of organic trends, non-food products have piqued consumer interest driven by buzzwords like “sustainable consumption” and “natural products”. New market segments not subjected to the Organic JAS regulations are emerging, like organic cosmetics and cotton. While the products remain a minor segment in their respective markets, businesses are jumping on board amid a growing focus on sustainability topics.
Organic food supply in Japan
Producers of organic foods in Japan must go through a certification process by third-party auditors accredited by MAFF to be able to label their products as “organic” (yuuki) in Japan. However, the adoption of organic farming is low, as farmers shy away from the added expenses on top of the challenges faced in the agriculture sector. As such, the area of organic farmland makes up less than a one percent share of cultivated land in the country, with vegetables being the main produce.The volatile production amounts limit the scope of distribution to the domestic market, with only around three thousand tons of organic food exported overseas. To broaden supply chains and lower retail prices, the Japanese government opened the market to foreign businesses secured by bilateral equivalency agreements. Organic products certified in major trade markets, like the United States, the European Union, and Canada among others, can be distributed under the Organic JAS system.
Organic trends
The Japanese government has been trying to raise awareness of organic foods and prevent misleading advertisements through strict labeling regulations. However, despite a rising demand amid healthy eating trends, awareness of the “Organic JAS” label among consumers remains low as the segment fails to distinguish itself from general health foods. Furthermore, Japanese consumers are willing to spend more on products they deem beneficial to health, but tightened purse strings amid inflation in Japan have diminished demand for organic products in favor of conventional products at lower price levels.On the other side of organic trends, non-food products have piqued consumer interest driven by buzzwords like “sustainable consumption” and “natural products”. New market segments not subjected to the Organic JAS regulations are emerging, like organic cosmetics and cotton. While the products remain a minor segment in their respective markets, businesses are jumping on board amid a growing focus on sustainability topics.
