Sector Trend Analysis – Fish and seafood trends in Japan

Trade overview

Japan is one of the world's largest consumers of fish and seafood products. Japan's imports of fish and seafood have slightly decreased by a CAGR of −0.5% from $20.5 billion in 2018 to $20.0 billion in 2022. Japan's imports of fish and seafood from Canada decreased by −2.7% annually over 2018 to 2022.

Japan was the seventeenth largest fish and seafood market in the world with imports valued at Can$3.9 billion in 2022. Over 2018 to 2022, Japan imports rose 1.4% annually. Canada was the world's eighth largest importer of fish and seafood, accounting for 4.0% of the total world market share in 2022 (Can$9.2 billion)

Japan has a diverse supply network of fish and seafood products. The top three suppliers of fish and seafood to Japan were China (Can$3.5 billion), Chile (Can$1.9 billion), and the U.S. (Can$1.6 billion) in 2022. Canada was Japan's twelfth largest supplier of fish and seafood providing Can$484.5 million in 2022.

Top imported fish and seafood products to Japan were frozen shrimp and prawns (Can$1.9 billion), followed by frozen tuna fillets (Can$1.2 billion) and shrimps and prawns (Can$1.2 million) in 2022.

Canada's performance

Canada was Japan's twelfth largest supplier of fish and seafood in 2022. Japan imported Can$484.5 million in fish and seafood from Canada in 2022, representing a decrease of 2.7% annually since 2018. Top fish and seafood imports were frozen processed crabs (Can$161.1 million), frozen cold-water shrimps (Can$41.5 million) and Atlantic salmon (Can$35.2 million) in 2022.

Retail sales

Japanese consumers are perceived as health conscious and among the world's most demanding for product quality and freshness. Despite tolerating high prices for fish and seafood, the pandemic related economic slowdown has pushed Japanese consumers to seek out lower prices and quality food products.

Over 2018 to 2022, retail fish and seafood sales declined 4.3% annually but are expected to stabilize over 2023 to 2027. Despite traditional fish and seafood dishes being rooted in Japanese culinary culture, fish and seafood sales are expected to remain below pre pandemics levels driven by unit price increases impacted by high oil prices affecting the cost of transportation and the price of packaging materials such as Styrofoam, which is petroleum-based and indispensable for transporting fish and seafood.

Since the lifting of pandemic requirements and the return to offices, Japanese consumers have become busier and shifted to packaged foods, which require less time to prepare and are expected to gain more traction than fresh fish and seafood, which is relatively more difficult time consuming to prepare. In addition, with price increases on fresh foods in general, some consumers are refraining from buying fish and seafood or shifting to cheaper meats such as poultry and pork.

To address declining fish and seafood sales, Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) has designated five days per month as "Fish Days" to promote the consumption of fish and seafood in the country. As of November 2022, 628 manufacturers, restaurants, retailers, and organisations have become supporting members of the initiative. Life Corporation, which operates Life supermarkets, one of the major chained supermarkets in Japan, participated in Fish Day from 3-7 November 2022 by offering a variety of shellfish in addition to fresh fish, while also cooking these fish in-store upon customers' request, as well as giving out recommendations on how to eat fish through conversations with customers in the Kinki and Tokyo metropolitan supermarket branches.

Aeon, another leading Japanese supermarket, expanded the shelf space for fish acquired through sustainable fishing to around 1.5 times its usual size, as well as expanded the product line-up of ready meals such as sushi, and fish side dishes sold on Fish Days in November 2022. The promotional methods and activities on Fish Days may vary depending on the month. Kewpie, one of the leading players in cooking ingredients and meals in Japan, also participated by proposing recipes for fish dishes using Kewpie products through its website, as well as posting the menus on Kewpie's official Instagram. With companies joining force with the government to promote fish and seafood consumption, consumers in Japan are likely to slowly regain interest in incorporating more fish into their diet.

Opportunities for Canada

On March 8, 2018, Canada signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The (CPTPP) is a free trade agreement between Canada and ten other countries in the Asia-Pacific region: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The agreement provides Canada with preferential access to key markets in Asia and Latin America.

Most tariff lines became duty-free when the Agreement entered into force for each CPTPP country. Tariffs on other goods will be eliminated gradually over "phase-out" periods, which vary by country and are detailed in each country's respective tariff elimination schedules (see Annex 2-D of the Agreement for the tariff elimination schedules of each CPTPP country).

Overall tariff elimination under the CPTPP

• The CPTPP provides comprehensive tariff elimination across all sectors. Once fully implemented, 99% of tariff lines among CPTPP parties will be duty-free.
• Once the agreement is fully implemented, Canada will have duty-free access to CPTPP countries for:
  • 94% of Canadian agriculture and agri-food products exports
  • 99% of Canadian industrial products exports
  • 100% of Canadian fish and seafood products exports
  • 100% of Canadian forest product exports

Exporters are strongly recommended to work with the local import agent, distributor, and the end-user to make sure the products are in compliance with Japanese regulations and all proper documentation has been completed. For more information, please consult the Exporting food out of Canada (Canadian Food Inspection Agency), Step-by-Step Guide to Exporting (The Canadian Trade Commissioner Service) and Standards and Regulations (PDF) (Japan External trade Organization).

Exporters should also determine the import classification and tariff rate for products. The Tariff Finder tool can assist exporters in determining tariff information for specific products and countries where Canada has a free trade agreement. Additionally, Japan Customs has a website for requesting an advance ruling on tariff classifications, which is available to importers and related parties.

Please note CanExport provides funding to small and medium-sized enterprises (SMEs) to reach export markets and execute strategic marketing projects such as participation in trade shows. Interested Canadian SMEs are encouraged to apply for this funding. If you have questions about exporting your agriculture or food products, or are looking for support, please contact the Market Access Secretariat, Agri-food and Agriculture Canada at aafc.mas-sam.aac@canada.ca.

For more information

The Canadian Trade Commissioner Service:

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

• Find a Trade Commissioner

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Resources

• Canadian Food Inspection Agency: Exporting food out of Canada
• Euromonitor International:
  • Fish and seafood in Japan (December 2022)
  • Fresh food in Japan (December 2022)
• Global Trade Tracker, 2023

Sector Trend Analysis – Fish and seafood trends in Japan
Global Analysis Report

Prepared by: Kris Clipsham, Market Analyst

© His Majesty the King in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2023).

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