Sector Trend Analysis – Bakery products in Japan

Note: This report includes forecasting data that is based on baseline historical data.

Executive summary

Japan was the fifth largest global retail sales market for baked goods with values of US$24.7 billion, representing a 5.0% market share in 2023. Japan experienced an increase in compound annual growth rate (CAGR) of 2.9% as retail sales grew from US$21.4 billion in 2018 and are expected to further improve with an increase in CAGR of 1.8% in the forecast period as retail sales are anticipated to reach US$27.0 billion by 2028.

In 2022, Japan was the twentieth largest global market for baked goods with imports of US$529.9 million (1.1% market share), 118.2 million kilograms in 2022, increasing in CAGR by 7.2% from US$373.9 million, 94.4 million kilograms in 2017.

Canada was Japan's sixteenth largest supplier of baked goods providing US$6.2 million (1.2% market share), 1.3 million kilograms in 2022, representing a decline in CAGR of 2.9% from US$7.2 million in 2017. Top baked goods imports from Canada included bread, pastry, cakes and biscuits (HS code: 190590) valued at US$6.2 million (99.0% market share), 1.3 million kilograms, and rusks, toasted bread (HS code 190540) with values of US$53,098 (0.9% market share), 3,510 kilograms.

The top baked goods categories in Japan, in terms of retail value sales in 2023, were pastries, with values of US$10.2 billion (41.3% market share), followed by cakes with values of US$9.6 billion (38.9% market share), and bread, with values of US$4.5 billion (18.1% market share). Of interest, frozen baked goods experienced the greatest performance within the historic period, as retail sales of the segment grew 9.3% from US$19.4 million in 2018 to US$30.2 million in 2023.

Japan's top five baked goods companies (Yamazaki Baking Co Ltd, Fuji Baking Co Ltd, Shikishima Baking Co Ltd, Kobeya Baking Co Ltd and Lotte Group) represented a combined market share of 42.7% in 2023.

According to Mintel's Global New Products Database (GNPD), there were 11,389 new bakery products launched in Japan from January 2018 to November 2023.

The predominant sub-categories of new bakery products released were cakes, pastries and sweet goods (7,790 products), sweet biscuits/cookies (2,342 products) and bread and bread products (861 products).

 

Global trade overview of bakery (baked goods) product imports

The global market for baked goods has experienced positive value growth with a moderate compound annual growth rate (CAGR) of 7.3% as imports increased from US$32.7 billion, (11.2 billion kilograms) in 2017 to US$46.5 billion, (14.0 billion kilograms) in 2022. The United States (U.S) was the largest global market for baked goods in 2022 with imports valued at US$9.8 billion, (21.1% market share), 2.4 billion kilograms, representing a substantial increase in CAGR of 13.9% from US$5.1 billion in 2017, followed by the United Kingdom (U.K) with imports valued at US$3.6 billion (7.8% market share), 1.1 billion kilograms, and an increase in CAGR of 8.3% from US$2.4 billion (880.8 million kilograms) in 2017 and Germany, with import values of US$3.1 billion (6.8% market share), 1.0 billion kilograms, in 2022.

Japan was the twentieth largest (after the Czech Republic and Portugal) global market for baked goods with imports of US$529.9 million (1.1% market share), 118.2 million kilograms in 2022, increasing in CAGR by 7.2% from US$373.9 million, 94.4 million kilograms in 2017. Canada in comparison, was the fifth largest global market for baked goods with import values of US$2.0 billion (4.4% market share), 509.9 million kilograms in 2022, representing a moderate increase in CAGR of 6.5% from imports of US$1.5 billion, (491.7 million kilograms) in 2017.

Baked goods[1] imports by top global markets (based on 2022 imports), historical imports in US$ millions, growth and market share
Country 2017 2018 2019 2020 2021 2022 CAGR* % 2017-2022 Market share % in 2022
World total 32,672.9 35,513.8 37,076.4 37,250.5 42,891.6 46,505.6 7.3 100.0
United States 5,120.2 5,722.6 6,172.5 6,445.4 7,808.5 9,828.8 13.9 21.1
United Kingdom 2,421.5 2,612.2 2,747.8 2,766.0 2,787.4 3,610.0 8.3 7.8
Germany 2,294.6 2,473.0 2,556.0 2,710.8 3,068.0 3,141.7 6.5 6.8
France 2,260.7 2,365.2 2,377.9 2,357.0 2,669.0 2,689.3 3.5 5.8
Canada (5) 1,485.3 1,554.8 1,635.3 1,655.1 1,762.0 2,036.6 6.5 4.4
Netherlands 1,235.5 1,410.3 1,451.9 1,470.8 1,753.5 1,853.0 8.4 4.0
Belgium 1,147.6 1,228.2 1,191.8 1,139.6 1,478.7 1,566.5 6.4 3.4
Italy 950.0 993.4 960.7 932.2 1,053.6 1,118.6 3.3 2.4
Spain 746.9 845.9 874.0 777.5 925.4 999.0 6.0 2.1
Australia 637.5 698.9 762.9 779.5 890.9 996.2 9.3 2.1
Japan (20) 373.9 389.4 417.7 423.5 490.8 529.9 7.2 1.1

Source: Global Trade Tracker, 2023

1: For the purpose of this report, baked goods are defined using HS code 1905

*CAGR: Compound Annual Growth Rate

Baked goods[1] imports by top global markets (based on 2022 imports), historical imports (volume) in million kilograms, growth and market share
Country 2017 2018 2019 2020 2021 2022 CAGR* % 2017-2022 Market share % in 2022
World total 11,211.7 11,985.1 12,549.9 13,431.7 13,577.7 14,008.8 4.6 100.0
United States 1,563.7 1,724.5 1,833.3 1,939.4 2,181.7 2,425.9 9.2 17.3
United Kingdom 880.8 897.5 964.1 977.0 863.7 1,064.1 3.9 7.6
Germany 794.9 828.4 899.7 923.5 993.2 1,035.6 5.4 7.4
France 753.2 752.1 772.5 786.3 863.9 871.8 3.0 6.2
Netherlands 424.0 457.3 537.1 594.2 656.5 786.2 13.1 5.6
Belgium 439.6 456.9 441.7 397.5 512.9 562.3 5.0 4.0
Canada (7) 491.7 508.0 519.2 505.3 498.0 509.9 0.7 3.6
Italy 334.0 326.2 338.7 319.0 347.1 366.2 1.9 2.6
Spain 248.9 261.8 290.7 267.9 304.9 337.6 6.3 2.4
Austria 219.9 232.9 254.7 244.1 257.0 260.0 3.4 1.9
Japan (26) 94.4 97.0 104.7 105.9 114.6 118.2 4.6 0.8

Source: Global Trade Tracker, 2023

1: For the purpose of this report, baked goods are defined using HS code 1905

*CAGR: Compound Annual Growth Rate

Japan's trade overview of baked good imports

Japan is a net importer of baked goods products. In 2022, Japan imported US$529.9 million and exported US$403.3 million of baked goods, recording a trade deficit of US$126.6 million. The top three suppliers of baked goods to Japan were China with values of US$107.9 million (20.4% market share), 31.9 million kilograms, followed by Malaysia with values of US$58.0 million (10.9% market share), 13.9 million kilograms, and the United States (U.S) with values of US$56.5 million (10.7% market share), 11.8 million kilograms in 2022. Canada in comparison, was Japan's sixteenth largest supplier of baked goods providing US$6.2 million (1.2% market share), 1.3 million kilograms in 2022, representing a decline in CAGR of 2.9% from US$7.2 million in 2017.

Top suppling countries of baked goods to Japan (based on 2022 imports), historical imports in US$ millions, growth and market share
Partner countries 2017 2018 2019 2020 2021 2022 CAGR* % 2017-2022 Market share % in 2022
World total 373.9 389.4 417.7 423.5 490.8 529.9 7.2 100.0
China 102.5 101.2 104.0 95.7 101.9 107.9 1.0 20.4
Malaysia 49.7 50.0 52.7 54.8 52.5 58.0 3.1 10.9
United States 41.5 41.0 39.3 34.1 44.8 56.5 6.4 10.7
France 20.3 22.8 33.9 33.0 50.1 56.2 22.5 10.6
Viet-Nam 18.1 21.7 24.8 26.9 26.4 32.4 12.4 6.1
Indonesia 13.2 14.8 15.6 19.9 21.4 27.7 16.0 5.2
Italy 18.5 17.2 20.9 25.2 28.1 26.8 7.7 5.1
Korea 10.5 9.9 12.1 14.5 18.7 22.1 15.9 4.2
Belgium 9.3 13.2 14.9 18.8 21.9 20.7 17.3 3.9
Thailand 27.0 26.9 26.6 26.3 23.2 20.7 −5.2 3.9
Canada (16) 7.2 5.7 6.8 6.2 7.4 6.2 −2.9 1.2

Source: Global Trade Tracker, 2023

*CAGR: Compound Annual Growth Rate

Top suppling countries of baked goods to Japan(based on 2022 imports), historical imports (volume) in million kilograms, growth and market share
Partner countries 2017 2018 2019 2020 2021 2022 CAGR* % 2017-2022 Market share % in 2022
World total 94.4 97.0 104.7 105.9 114.6 118.2 4.6 100.0
China 32.8 31.6 32.6 30.5 31.9 31.9 −0.6 26.9
Malaysia 10.5 10.8 11.7 12.5 12.5 13.9 5.7 11.8
United States 11.8 11.6 10.8 10.4 11.5 11.8 0.0 9.9
Indonesia 5.1 6.0 6.1 7.5 7.1 8.3 10.0 7.0
Viet-Nam 5.3 6.6 7.3 7.7 7.3 8.2 9.1 7.0
France 3.0 3.2 6.2 5.6 7.0 7.9 21.4 6.7
Italy 3.6 3.2 3.9 4.2 5.1 5.4 8.5 4.6
Korea 2.0 1.9 2.4 3.1 4.2 5.1 20.3 4.3
Thailand 6.9 6.3 6.2 6.1 5.2 4.7 −7.2 4.0
Belgium 1.9 2.9 4.3 4.9 5.0 4.3 18.1 3.7
Canada (14) 1.5 1.2 1.6 1.4 1.7 1.3 −2.1 1.1

Source: Global Trade Tracker, 2023

*CAGR: Compound Annual Growth Rate

Of Japan's baked good imports, bread, pastry, cakes and biscuits (HS code: 190590) were the largest segment with values of US$506.1 million (95.5% market share), 113.8 million kilograms, followed by waffles and wafers (HS code: 190532) with values of US$20.5 million (3.9% market share), 3.9 million kilograms and rusks, toasted bread (HS code: 190540) with values of US$2.2 million (0.4% market share), 352,579 kilograms, in 2022. Of note, Canada has attained measurable market representation in most of Japan's baked goods imports (with the exception of gingerbread and sweet biscuits), particularly with rusks (toasted bread) imports, which Canada's supply represented 2.4% of the market share in 2022.

Japan's top baked goods imports by HS code, and supplying countries in 2022 - Import values in US$ and volume in kilograms
HS Code Description Import value (US$) Import volume (kilograms) Top suppliers and market value share % Canada's value share %
1 2 3
Baked goods total (HS code 1905) 529,949,877 118,215,845 China: 20.4 Malaysia: 10.9 United States: 10.7 1.2
190590 Bread, pastry, cakes and biscuits 506,124,744 113,780,660 China: 21.2 Malaysia: 11.2 United States: 11.1 1.2
190532 Waffles and wafers 20,494,569 3,920,690 Belgium: 55.3 Italy: 17.0 Malaysia: 5.7 0.03
190540 Rusks, toasted bread 2,203,529 352,579 Thailand: 20.7 Spain: 16.5 China: 13.8 2.4
190510 Crispbread 615,157 66,040 Norway: 77.7 Australia: 15.8 Switzerland: 4.2 0.6
190520 Gingerbread 416,947 82,574 Sweden: 52.4 Sri Lanka: 19.5 Germany: 15.8
190531 Sweet biscuits 94,931 13,302 France: 52.8 Brazil: 20.5 Italy: 18.4
Source: Global Trade Tracker, 2023

Canada's performance

Japan's baked goods imports from Canada

Japan was the twentieth largest global market for baked good products with imports of US$529.9 million (1.1% market share), 118.2 million kilograms in 2022. Of these imports, Canada was the sixteenth largest supplier to Japan (representing a 1.2% market share) with imports valued at US$6.2 million (−2.9% from US$7.2 million in 2017), 1.3 million kilograms in 2022.

Top baked goods imports from Canada included bread, pastry, cakes and biscuits (HS code: 190590) valued at US$6.2 million (99.0% market share), 1.3 million kilograms, followed by rusks, toasted bread (HS code 190540) with values of US$53,098 (0.9% market share), 3,510 kilograms and waffles and wafers (HS code: 190532) with values of US$5,658 (0.1% market share), 329 kilograms.

Japan's top baked goods imports by HS code, from Canada in 2022 - Import values in US$ and volume in kilograms
HS Code Description Import value (US$) Import volume (kilograms) Market value share %
Baked goods total (HS code 1905) 6,215,296 1,341,388 100.0
190590 bread, pastry, cakes and biscuits 6,153,089 1,337,369 99.0
190540 rusks, toasted bread 53,098 3,510 0.9
190532 waffles and wafers 5,658 329 0.1
190510 crispbread 3,451 180 0.1
Source: Global Trade Tracker, 2023
Canada's baked goods supply gap to Japan, in US$ millions
Category 2017 2018 2019 2020 2021 2022 CAGR* % 2017-2022
Japan imports from the World 373.9 389.4 417.7 423.5 490.8 529.9 7.2
Japan imports from Canada 7.2 5.7 6.8 6.2 7.4 6.2 −2.9
Supply gap 366.7 383.7 410.9 417.3 483.4 523.7 7.4

Source: Global Trade Tracker, 2023

*CAGR: Compound Annual Growth Rate

Canada's export market

Canada, unlike Japan, is a net exporter of baked goods products. In 2022, Canada enjoyed a baked goods product trade surplus of US$2.7 billion with imports of US$2.0 billion, and exports valued at US$4.7 billion (+13.9% from exports of US$2.4 billion in 2017). Of interest, Canada was the second largest (after Germany) global exporter of baked goods in 2022.

Canada's top baked goods products exported to global markets included bread, pastry, cakes and biscuits (HS code: 190590) with values of US$3.4 billion (72.1% market share), 711.6 million kilograms, sweet biscuits (HS code: 190531) with values of US$551.7 million (11.9% market share), 108.1 million kilograms and waffles and wafers (HS code: 190532) valued at US$469.3 million (10.1% market share), 75.0 million kilograms in 2022.

The U.S was the largest market for Canadian baked goods product exports with values of US$4.5 billion (97.0% market share), 911.2 million kilograms, followed by the U.K with values of US$44.8 million (1.0% market share), 14.4 million kilograms and Mexico with values of US$34.8 million (0.8% market share), 4.0 million kilograms in 2022. Japan in comparison, was the fifth largest export market for Canadian baked goods products with values of US$7.5 million (0.2% market share), 2.2 million kilograms in 2022.

Canada's baked goods exports to top global markets in 2022, US$ million and volume
Country Export value (US$ M) Export volume (kilograms) Market value share % in 2022
Global total 4,656,420,063 947,207,451 100.0
United States 4,518,211,999 911,221,123 97.0
United Kingdom 44,774,526 14,393,587 1.0
Mexico 34,805,424 3,979,942 0.8
Australia 12,122,668 3,036,933 0.3
Japan (5) 7,474,612 2,160,743 0.2
Korea 3,648,156 1,284,563 0.1
Ireland 3,638,371 1,286,698 0.1
Saudi Arabia 3,056,585 598,908 0.1
Philippines 2,076,951 489,361 0.04
Costa Rica 1,968,648 1,286,136 0.04
Source: Global Trade Tracker, 2023

The province of Ontario was predominant in supplying baked good products to Japan, occupying a 52.5% market share, followed by British Columbia with a 31.5% market share and Québec, representing a 16.0% market share in 2022. Bread, pastry, cakes and biscuits (HS code: 190590) was the largest baked goods segment exported to Japan with values of US$5.1 million (68.8% market share), 1.4 million kilograms, followed by sweet biscuits (HS code 190531) with values of US$1.7 million (23.3% market share), 406,946 kilograms and crispbread (HS code 190510) with values of US$541,426 (7.2% market share), 337,704 kilograms in 2022.

Canada's top baked goods exports to Japan by supplying provinces in 2022 - Export values in US$ and volume
HS Code Description Export value (US$) Export volume (kilograms) Top provincial suppliers and market value share %
Baked goods total (HS code 1905) 7,474,612 2,160,743 Ontario: 52.5 British Columbia: 31.5 Québec: 16.0
190590 bread, pastry, cakes, biscuits 5,143,241 1,405,049 Ontario: 92.2 Québec: 6.9 British Columbia: 0.9
190531 sweet biscuits 1,742,863 406,946 Ontario: 68.9 Québec: 23.8 British Columbia: 7.4
190510 crispbread 541,426 337,704 Ontario: 100.0
190540 rusks, toasted bread 42,449 10,360 British Columbia: 54.7 Ontario: 45.3
190532 waffles and wafers 4,634 684 Ontario: 100.0
Source: Global Trade Tracker, 2023

Retail markets

Global retail sales overview of bakery products (baked goods)

Global retail sales of baked goods have increased moderately in CAGR by 7.9% from US$334.7 billion in 2018 to US$489.4 billion in 2023 and are expected to increase at an additional CAGR of 7.6% as retail sales attain US$706.4 billion by 2028. The United States (U.S) was the largest global market for baked goods with retail sales of US$98.1 billion (20.0% market share), followed by China with values of US$36.6 billion (7.5% market share) and Mexico, with retail sales of US$29.4 billion (6.0% market share) in 2023.

Japan was the fifth largest global retail sales market for baked goods with values of US$24.7 billion, representing a 5.0% market share in 2023. Japan experienced an increase in CAGR of 2.9% as retail sales grew from US$21.4 billion in 2018 and are expected to further improve with an increase in CAGR of 1.8% in the forecast period as retail sales are anticipated to reach US$27.0 billion by 2028. In comparison, Canada was the twelfth largest retail sales market for baked goods, accounting for a 1.7% retail sale market share with values of US$8.3 billion in 2023, representing an increase of 7.0% from US$5.9 billion in 2018. Similarly, Canada is also expected to achieve positive growth, increasing by 3.2% in the forecast period as retail sales attain US$9.7 billion by 2028. Of note, Türkiye is anticipated to experience the largest increase in CAGR (19.7%) in the forecast period as retail sales of baked goods reach US$40.4 billion by 2028.

Baked goods[1] retail value sales by top global markets (based on 2023 sales) - Historical and forecast retail value sales in US$ millions and growth
Geography 2018 2023 CAGR* % 2018-2023 2024 2028 CAGR* % 2023-2028
World 334,711.3 489,447.1 7.9 529,704.9 706,411.4 7.6
United States 65,951.7 98,127.0 8.3 107,147.3 132,582.9 6.2
China 30,251.4 36,620.7 3.9 39,075.8 48,918.2 6.0
Mexico 18,965.0 29,416.9 9.2 31,517.6 39,813.3 6.2
Brazil 17,460.0 28,979.2 10.7 31,999.4 43,864.7 8.6
Japan (5) 21,364.8 24,692.1 2.9 25,316.6 27,044.4 1.8
Italy 18,669.3 24,534.9 5.6 25,672.6 29,629.6 3.8
Germany 17,019.0 21,907.0 5.2 21,097.5 22,874.0 0.9
France 15,276.8 18,731.7 4.2 19,438.7 21,525.9 2.8
Türkiye 2,362.4 16,470.4 47.5 21,071.4 40,418.3 19.7
United Kingdom 9,203.5 11,088.7 3.8 11,566.0 13,581.9 4.1
Canada (12) 5,932.7 8,320.7 7.0 8,547.2 9,719.9 3.2

Source: Euromonitor International, 2023

1: Baked goods (as defined by Euromonitor International), the aggregation of bread, pastries, dessert mixes, frozen baked goods and cakes. Note: Baked goods from in-store bakeries are classified under unpackaged/artisanal, not packaged/industrial.

*CAGR: Compound Annual Growth Rate

Retail sales overview of bakery products (baked goods) in Japan

Retail sales of baked goods in Japan were valued at US$24.7 billion in 2023. During the 2018-2023 period, this market grew at a CAGR of 2.9% from US$21.4 billion in 2017 (−1.3% from 2019-2020). Between 2020-2021, the market increased by 4.8%, and most recently, increased by a further 6.2% from 2022 −2023 (as retail sales grew from US$23.2 billion in 2022). Baked goods are expected to experience continued growth in value sales in 2023 (as volume sales remain relatively stagnant), largely driven by unit price increases (and rising production costs due to increases in the selling price of imported wheat by the Japanese government). In addition to increasing prices of imported wheat, an avian flu outbreak in the first half of 2023 also led to an egg shortage, increasing egg prices and effecting production costs, especially for cakes (Euromonitor International; Baked Goods in Japan, November 2023).

The top baked goods categories in Japan, in terms of retail value sales in 2023, were pastries, with values of US$10.2 billion (41.3% market share) increasing at a CAGR of 3.0% from US$8.8 billion in 2018, followed by cakes with values of US$9.6 billion (38.9% market share), representing an increase in CAGR of 3.2% from US$8.2 billion in 2018 and bread, with values of US$4.5 billion (18.1% market share), increasing in CAGR by 2.1% from US$4.0 billion in 2018. Of interest, frozen baked goods experienced the greatest performance within the historic period, as retail sales of the segment grew 9.3% from US$19.4 million in 2018 to US$30.2 million in 2023.

Growth in Japan's baked goods category is expected to remain positive at 1.8%, as retail value sales are projected to reach US$27.0 billion by 2028. In contrast, retail volume growth of baked goods is likely to remain limited over the forecast period due to the country's declining population. Given this demographic shift, baked goods manufacturers are expected to sustain sales through the provision of premium value-added and health-oriented product lines that are also budget conscious. For example, manufacturer Shikishima Baking introduced a healthier version of leavened bread with sprouted brown and black rice in 2023 (Euromonitor International; Baked Goods in Japan, November 2023). Further, the importance of domestic wheat and food self-sufficiency has also been increasing in Japan. The country's Ministry of Agriculture, Forestry and Fisheries seeks to increase Japan's wheat production area by 9.0% by 2030. However, as baked goods products made with domestic wheat are generally priced higher (as domestic production quantity is limited by the country's rainy seasons) than those made with imported wheat; promotional activities that convey the taste and safety of domestically grown wheat are likely to remain a necessity in order to support both retail value and volume sales in the forecast period (Euromonitor International; Baked Goods in Japan, November 2023).

Baked goods retail value sales by product category - Historical and forecast retail value sales in US$ millions and growth
Category 2018 2023 CAGR* % 2018-2023 2024 2028 CAGR* % 2023-2028
Baked Goods 21,364.8 24,692.1 2.9 25,316.6 27,044.4 1.8
Bread 4,020.6 4,466.3 2.1 4,614.8 4,997.0 2.3
Cakes 8,211.8 9,604.1 3.2 9,929.2 10,868.0 2.5
Dessert Mixes 110.7 127.0 2.8 128.0 130.7 0.6
Frozen Baked Goods 19.4 30.2 9.3 30.9 33.4 2.0
Pastries 8,781.1 10,189.8 3.0 10,329.8 10,704.9 1.0
Dessert Pies and Tarts 221.1 274.6 4.4 283.9 310.4 2.5

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Competitive landscape

Japan's baked goods market remained a highly fragmented industry in 2023. The top five baked goods companies (Yamazaki Baking Co Ltd, Fuji Baking Co Ltd, Shikishima Baking Co Ltd, Kobeya Baking Co Ltd and Lotte Group) represented a combined market share of 42.7% in 2023.

In terms of retail sales, Yamazaki Baking Co Ltd (top Brand names; Yamazaki, Lunch Pack, Mini Pan, Royal Bread, Shokutaku Roll and Shu Cream) was the largest baked goods company in Japan with values of US$6.1 billion (24.8% market share). The company's success can be attributed to its extensive product portfolio and price range that accommodate the requirements of price-sensitive consumer. Fuji Baking Co Ltd (Brand names; Fuji Baking, onjikomi and Neo), Japan's second largest baked goods company, attained retail values of US$1.8 billion (7.5% market share) in 2023.

Private label companies in comparison, continue to show a measured presence in the baked goods market in Japan with retail sales of US$926.2 million (3.8% market share) in 2023, increasing in CAGR by 5.8% from retail sales of US$699.7 million in 2018, while artisanal companies represented a larger market share, attaining retail sales of US$4.6 billion (18.6% market share) in 2023, and increasing in CAGR by 0.3% from US$4.5 billion in 2018.

Top 10 baked goods companies in Japan in 2023 - Retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 24,692.1 100.0
Yamazaki Baking Co Ltd 6,126.9 24.8
Fuji Baking Co Ltd 1,843.6 7.5
Shikishima Baking Co Ltd 1,774.0 7.2
Kobeya Baking Co Ltd 447.4 1.8
Lotte Group 340.9 1.4
First Baking Co Ltd 329.6 1.3
Morinaga & Co Ltd 260.8 1.1
Bourbon Corp 166.3 0.7
Nichiryo Baking Co Ltd 98.7 0.4
Andersen Co Ltd 82.6 0.3
Artisanal 4,590.3 18.6
Private Label 926.2 3.8
Others 7,510.3 30.4
Source: Euromonitor International, 2023

Distribution channels

The majority of Japan's baked goods market is distributed through grocery retailers versus non-grocery retailers. Grocery retailers (offline) distribution of baked goods accounted for an 86.8% market share in 2023, decreasing slightly from 88.1% held in 2018, while grocery retailing (online, e-commerce), increased from US$638.3 million (3.0% market share) in 2018 to US$801.2 million (3.2% market share) in 2023. Further, within grocery retailers (offline), convenience stores and supermarkets were the predominant distribution channels for baked goods representing US$7.0 billion and US$6.2 billion each, with market shares of 28.4% and 24.9% respectively, and within non-grocery retailers, health and beauty specialist retailers occupied a 7.4% market share, retail sales of US$1.8 billion in 2023.

Retail distribution channels for baked goods in Japan - Retail value sSales in US$ millions and market share
Outlet type 2018 2023
Actual Share % Actual Share %
Retail Channels Total 21,364.8 100.0 24,692.1 100.0
Retail Offline 20,726.5 97.0 23,890.9 96.8
Grocery Retailers 18,829.5 88.1 21,444.0 86.8
Convenience Retail 6,309.8 29.5 7,007.1 28.4
Convenience Stores 6,309.8 29.5 7,007.1 28.4
Supermarkets 5,072.9 23.7 6,157.3 24.9
Hypermarkets 3,006.3 14.1 3,462.9 14.0
Warehouse Clubs 131.7 0.6 155.2 0.6
Food/drink/tobacco specialists 4,039.7 18.9 4,366.3 17.7
Small Local Grocers 269.2 1.3 295.3 1.2
Non-Grocery Retailers 1,897.0 8.9 2,446.8 9.9
General Merchandise Stores 624.6 2.9 625.5 2.5
Health and Beauty Specialists 1,272.4 6.0 1,819.3 7.4
Other Non-Grocery Retailers 2.0 0.0
Retail E-Commerce 638.3 3.0 801.2 3.2
Source: Euromonitor International, 2023

Market segmentation

Bread

Bread was the third largest category in Japan's baked goods market with retail value sales of US$4.5 billion (18.1% market share) in 2023. The category grew at a measurable CAGR of 2.1% during the 2018-2023 period, increasing in retail sales from US$4.0 billion in 2018.

Leavened bread was the largest bread segment with retail value sales of US$4.5 billion (99.7% of bread market share) in 2023. Of the leavened bread segment, unpackaged leavened bread achieved the best annual performance, increasing in growth by 6.7% as retail sales increased from US$808.9 million in 2022 to US$863.2 million in 2023, while packaged leavened bread increased in CAGR by 2.3% from US$3.2 billion in 2018 to US$3.6 billion in 2023. Flat bread (packaged) in comparison, grew by a measurable 6.1% from US$9.8 million in 2018 to US$13.2 million in 2023 (−5.7% from US$14.0 million in 2022 to US$13.2 million in 2023).

The overall bread market is forecast to remain positive with a CAGR of 2.3% as retail sales are anticipated to reach US$5.0 billion by 2028, despite flat bread's expected marginal decline in growth by 1.2% to US$12.4 million by 2028. In the bread (flat and unleavened) market competitive landscape, Yamazaki Baking Co Ltd (Brand names: Royal Bread, Shokutaku Roll, Double Soft, Chou Houjun and Funwari Shokupan) led sales with a market share of 34.5%, followed by Shikishima Baking Co Ltd (Brand name: Choujyuku) with a market share of 19.9% and Fuji Baking Co Ltd (Brand names: Honjikomi and Neo) with a market share of 13.7% in 2023. In comparison, private label held a measured presence in the bread market attaining a 5.9% market share, while artisanal companies represented a greater share (19.3%) of the market, in 2023.

Bread retail value sales by category - Historic retail sales in US$ millions
Category 2018 2019 2020 2021 2022 2023
Bread 4,020.6 4,064.5 4,107.5 4,067.2 4,259.1 4,466.3
Flat Bread 9.8 10.1 13.4 13.4 14.0 13.2
Packaged Flat Bread 9.8 10.1 13.4 13.4 14.0 13.2
Leavened Bread 4,010.8 4,054.4 4,094.1 4,053.9 4,245.1 4,453.1
Packaged Leavened Bread 3,211.0 3,286.6 3,381.2 3,313.5 3,436.2 3,589.9
Unpackaged Leavened Bread 799.8 767.8 713.0 740.4 808.9 863.2
Source: Euromonitor International, 2023
Bread retail value sales by category - Historic retail value sales growth
Category Annual growth % 2022-2023 CAGR* % 2018-2023 Total growth % 2018-2023
Bread 4.9 2.1 11.1
Flat Bread −5.7 6.1 34.7
Packaged Flat Bread −5.7 6.1 34.7
Leavened Bread 4.9 2.1 11.0
Packaged Leavened Bread 4.5 2.3 11.8
Unpackaged Leavened Bread 6.7 1.5 7.9

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Top bread companies in Japan in 2023 - Retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 4,466.3 100.0
Yamazaki Baking Co Ltd 1,540.6 34.5
Shikishima Baking Co Ltd 888.0 19.9
Fuji Baking Co Ltd 612.3 13.7
Private Label 262.8 5.9
Artisanal 863.2 19.3
Others 97.5 2.2
Source: Euromonitor International, 2023
Bread retail value sales by category - Forecast retail sales in US$ millions
Category 2024 2025 2026 2027 2028
Bread 4,614.8 4,722.8 4,817.2 4,908.2 4,997.0
Flat Bread 12.8 12.6 12.5 12.4 12.4
Packaged Flat Bread 12.8 12.6 12.5 12.4 12.4
Leavened Bread 4,602.0 4,710.2 4,804.7 4,895.7 4,984.7
Packaged Leavened Bread 3,712.0 3,802.4 3,881.2 3,956.9 4,030.5
Unpackaged Leavened Bread 890.0 907.8 923.4 938.8 954.2
Source: Euromonitor International, 2023
Bread retail value sales by category - Forecast retail value sales growth
Category Annual growth % 2023-2024 CAGR* % 2023-2028 Total growth % 2023-2028
Bread 3.3 2.3 11.9
Flat Bread −3.0 −1.2 −6.1
Packaged Flat Bread −3.0 −1.2 −6.1
Leavened Bread 3.3 2.3 11.9
Packaged Leavened Bread 3.4 2.3 12.3
Unpackaged Leavened Bread 3.1 2.0 10.5

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Cakes

Cakes were the second largest category in Japan's baked goods market with retail value sales of US$9.6 billion (38.9% market share) in 2023. The category grew at a CAGR of 3.2% during the 2018-2023 period, increasing in retail sales from US$8.2 billion in 2018.

Packaged cakes were the largest cake segment with retail value sales of US$7.2 billion (75.1% of cake market share) in 2023, increasing in CAGR by 4.4% from US$5.8 billion in 2018. Of note, unpackaged cakes experienced the best performance of the segment, increasing in annual growth by 7.6% from US$2.2 billion in 2022 to US$2.4 in 2023.

The cake market is forecast to remain positive, albeit at a lower growth rate of 2.5%, as retail sales are anticipated to reach US$10.9 billion by 2028. In the cake market competitive landscape, Yamazaki Baking Co Ltd (Brand names: Yamazaki and Shu Cream) led sales with a market share of 18.5%, followed by Lotte Group (Brand name: Choco Pie) with a market share of 3.5% and Morinaga & Co Ltd (Brand name: Morinaga) with a market share of 2.6% in 2023. In comparison, private label represented a measured market share (3.1%), while artisanal companies represented a significant presence (24.9%) in Japan's cake market, in 2023.

Cake retail value sales by category - Historic retail sales in US$ millions
Category 2018 2019 2020 2021 2022 2023
Cakes 8,211.8 8,087.6 7,931.7 8,545.0 8,979.1 9,604.1
Packaged Cakes 5,818.2 5,741.9 6,100.2 6,555.8 6,756.1 7,211.2
Unpackaged Cakes 2,393.6 2,345.8 1,831.5 1,989.2 2,223.0 2,392.9
Source: Euromonitor International, 2023
Cake retail value sales by category - Historical retail value sales growth
Category Annual growth % 2022-2023 CAGR* % 2018-2023 Total growth % 2018-2023
Cakes 7.0 3.2 17.0
Packaged Cakes 6.7 4.4 23.9
Unpackaged Cakes 7.6 0.0 0.0

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Top cake companies in Japan in 2023 - Retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 9,604.1 100.0
Yamazaki Baking Co Ltd 1,774.2 18.5
Lotte Group 340.9 3.5
Morinaga & Co Ltd 245.3 2.6
Private Label 297.9 3.1
Artisanal 2,392.9 24.9
Others 3,790.4 39.5
Source: Euromonitor International, 2023
Cake retail value sales by category - Forecast retail sales in US$ millions
Category 2024 2025 2026 2027 2028
Cakes 9,929.2 10,177.5 10,400.9 10,640.9 10,868.0
Packaged Cakes 7,459.9 7,652.1 7,826.5 7,998.4 8,168.9
Unpackaged Cakes 2,469.3 2,525.4 2,574.4 2,642.5 2,699.2
Source: Euromonitor International, 2023
Cake retail value sales by category - Forecast retail value sales growth
Category Annual growth % 2023-2024 CAGR* % 2023-2028 Total growth % 2023-2028
Cakes 3.4 2.5 13.2
Packaged Cakes 3.4 2.5 13.3
Unpackaged Cakes 3.2 2.4 12.8

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Pastries

Pastries were the largest category in Japan's baked goods market with retail value sales of US$10.2 billion (41.3% market share) in 2023 due to the strong demand for the categories on-the-go products, as pastries remain a convenient and popular breakfast and lunch option amongst consumers, office workers in particular (Euromonitor International; Baked Goods in Japan, November 2023). The category grew at a moderate CAGR of 3.0% during the 2018-2023 period, increasing in retail sales from US$8.8 billion in 2018. Within the pastries category, packaged pastries were the largest segment with retail value sales of US$8.9 billion (86.9% of pastries market share) in 2023, increasing in CAGR by 3.5% from US$7.5 billion in 2018 (+6.6% from US$8.3 billion in 2022).

The pastry market is forecast to increase in CAGR by 1.0% as retail sales are anticipated to reach US$10.7 billion by 2028. In the pastry market competitive landscape, Yamazaki Baking Co Ltd (Brand names: Lunch Pack and Mini Pan) led sales with a market share of 27.1%, followed by Fuji Baking Co Ltd (Brand name: Fuji Baking) with a market share of 10.1% and Shikishima Baking Co Ltd (Brand name: Shikishima Baking) with a market share of 6.3% in 2023. In comparison, private label attained a market share representation of 3.5% while artisanal companies represented a larger presence within the Japanese pastry market, attaining a market share of 13.1% in 2023.

Pastries retail value sales by category - Historic retail sales in US$ millions
Category 2018 2019 2020 2021 2022 2023
Pastries 8,781.1 8,844.9 8,612.3 9,035.3 9,596.1 10,189.8
Packaged Pastries 7,458.6 7,575.3 7,524.0 7,856.3 8,309.2 8,855.7
Unpackaged Pastries 1,322.5 1,269.6 1,088.3 1,178.9 1,287.0 1,334.1
Source: Euromonitor International, 2023
Pastries retail value sales by category - Historical retail value sales growth
Category Annual growth % 2022-2023 CAGR* % 2018-2023 Total growth % 2018-2023
Pastries 6.2 3.0 16.0
Packaged Pastries 6.6 3.5 18.7
Unpackaged Pastries 3.7 0.2 0.9

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Top pastries companies in Japan in 2023 - Retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 10,189.8 100.0
Yamazaki Baking Co Ltd 2,765.7 27.1
Fuji Baking Co Ltd 1,025.5 10.1
Shikishima Baking Co Ltd 645.0 6.3
Private Label 357.8 3.5
Artisanal 1,334.1 13.1
Others 3,359.0 33.0
Source: Euromonitor International, 2023
Pastries retail value sales by category - Forecast retail sales in US$ millions
Category 2024 2025 2026 2027 2028
Pastries 10,329.8 10,415.2 10,497.7 10,594.8 10,704.9
Packaged Pastries 8,958.9 9,018.0 9,077.2 9,151.2 9,238.3
Unpackaged Pastries 1,370.9 1,397.3 1,420.5 1,443.6 1,466.7
Source: Euromonitor International, 2023
Pastries retail value sales by category - Forecast retail value sales growth
Category Annual growth 2023-2024 CAGR* % 2023-2028 Total growth % 2023-2028
Pastries 1.4 1.0 5.1
Packaged Pastries 1.2 0.8 4.3
Unpackaged Pastries 2.8 1.9 9.9

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Dessert pies and tarts

The dessert pies and tarts category attained retail value sales of US$274.6 million (1.1% market share of baked goods) in 2023. The category grew at a measurable CAGR of 4.4% during the 2018-2023 period, increasing in retail sales from US$221.1 million in 2018. Sweet pies and tarts were the largest segment of the category with retail value sales of US$239.2 million (87.1% of dessert pies and tarts market share) in 2023, increasing in CAGR by 3.6% from US$200.9 million in 2018, while the frozen cakes, sweet pies and tarts segment experienced the largest increase in growth (11.8%) within the historic period as retail sales increased from US$20.3 million in 2018 to US$35.4 million in 2023 (+7.3% from US$33.0 million in 2022).

The dessert pies and tarts market are forecast to remain positive with a lower CAGR of 2.5% as retail sales increase to US$310.4 million by 2028. In the dessert pies and tarts market competitive landscape, Yamazaki Baking Co Ltd (Brand name: Yamazaki) led sales with a market share of 16.9%, followed by Shikishima Baking Co Ltd (Brand name: Shikishima Baking) with a market share of 8.5% and Nichirei Corp (Brand name: Nichirei) with a market share of 5.1% in 2023.

Dessert pies and tarts retail value sales by category - Historic retail sales in US$ millions
Category 2018 2019 2020 2021 2022 2023
Dessert Pies and Tarts 221.1 218.6 236.1 267.1 264.0 274.6
Sweet Pies and Tarts 200.9 198.2 210.6 238.1 230.9 239.2
Frozen Cakes, Sweet Pies and Tarts 20.3 20.4 25.4 29.0 33.0 35.4
Source: Euromonitor International, 2023
Dessert pies and tarts retail value sales by category - Historical retail value sales growth
Category Annual growth % 2022-2023 CAGR* % 2018-2023 Total growth % 2018-2023
Dessert Pies and Tarts 4.0 4.4 24.2
Sweet Pies and Tarts 3.6 3.6 19.1
Frozen Cakes, Sweet Pies and Tarts 7.3 11.8 74.4

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Top dessert pies and tart companies in Japan in 2023 - Retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 274.6 100.0
Yamazaki Baking Co Ltd 46.3 16.9
Shikishima Baking Co Ltd 23.4 8.5
Nichirei Corp 13.9 5.1
Others 188.7 68.7
Source: Euromonitor International, 2023
Dessert pies and tarts retail value sales by category - Forecast retail sales in US$ millions
Category 2024 2025 2026 2027 2028
Dessert Pies and Tarts 283.9 291.5 298.1 304.4 310.4
Sweet Pies and Tarts 247.1 253.4 258.9 264.2 269.3
Frozen Cakes, Sweet Pies and Tarts 36.8 38.1 39.2 40.2 41.1
Source: Euromonitor International, 2023
Dessert pies and tarts retail value sales by category - Forecast retail value sales growth
Category Annual growth % 2023-2024 CAGR* % 2023-2028 Total growth % 2023-2028
Dessert Pies and Tarts 3.4 2.5 13.0
Sweet Pies and Tarts 3.3 2.4 12.6
Frozen Cakes, Sweet Pies and Tarts 4.0 3.0 16.1

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Dessert mixes and frozen baked goods

Dessert mixes and frozen baked goods attained retail value sales of US$127.0 million (0.5% market share of baked goods) and US$30.2 million (0.1% market share of baked goods) respectively, in 2023. Dessert mixes increased in CAGR by 2.8% from US$110.7 million in 2018 (+8.5% from US$117.0 million in 2022) as manufacturers have recently increased product innovation and versatility to help mitigate declining volume sales incurred between 2021 to 2022. For example, Hagoromo Foods, a manufacturer of processed fruit and vegetables, recently launched microwavable pouch steamed cake mixes requiring minimal preparation (the addition of water), for consumption as a sweet dessert or as a main meal (with corn or beans), complementing a variety of consumption occasions (Euromonitor International; Baked Goods in Japan, November 2023). Frozen baked goods in comparison, was the greater performing category of the two, increasing in growth by 9.3% from US$19.4 million in 2018 to US$30.2 million in 2023 (+7.9% from US$28.0 million in 2022).

In the forecast period, both dessert mixes and frozen baked goods will achieve positive growth, increasing to US$130.7 million and US$33.4 million respectively, by 2028. In the dessert mix competitive landscape, House Foods Corp (Brand name: House Foods) led sales with a market share of 26.6%, followed by Nisshin Seifun Group Inc (Brand name: Nisshin Seifun) with a market share representation of 22.5% and Nippon Flour Mills Co Ltd (Brand name: Nippon), with a market share of 17.9% in 2023. In comparison, private labels represented a measured presence in the Japan dessert mixes market, attaining a market share of 5.5% in 2023. In the frozen baked goods competitive landscape, Nichirei Corp (Brand name: Nichirei) led sales with a market share of 34.1%, followed by Japan Tobacco Inc (Brand name: TableMark) with a market share of 24.8% in 2023. In comparison, private labels represented a measured presence in the Japanese frozen baked goods market, attaining a market share of 2.3% in 2023.

Dessert mixes and frozen baked goods retail value sales by category - Historic retail sales in US$ millions
Category 2018 2019 2020 2021 2022 2023
Dessert Mixes 110.7 113.4 148.6 126.2 117.0 127.0
Frozen Baked Goods 19.4 19.5 25.6 25.2 28.0 30.2
Source: Euromonitor International, 2023
Dessert mixes and frozen baked goods retail value sales by category - Historical retail value sales growth
Category Annual growth % 2022-2023 CAGR* % 2018-2023 Total growth % 2018-2023
Dessert Mixes 8.5 2.8 14.7
Frozen Baked Goods 7.9 9.3 55.7

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Top dessert mix companies in Japan in 2023 - Retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 127.0 100.0
House Foods Corp 33.8 26.6
Nisshin Seifun Group Inc 28.6 22.5
Nippon Flour Mills Co Ltd 22.7 17.9
Private Label 7.0 5.5
Others 19.4 15.3
Source: Euromonitor International, 2023
Top frozen baked goods companies in Japan in 2023 - Retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 30.2 100.0
Nichirei Corp 10.3 34.1
Japan Tobacco Inc 7.5 24.8
Private Label 0.7 2.3
Others 11.7 38.7
Others
Source: Euromonitor International, 2023
Dessert mixes and frozen baked goods retail value sales by category - Forecast retail sales in US$ millions
Category 2024 2025 2026 2027 2028
Dessert Mixes 128.0 128.4 128.9 129.6 130.7
Frozen Baked Goods 30.9 31.6 32.2 32.8 33.4
Source: Euromonitor International, 2023
Dessert mixes and frozen baked goods retail value sales by category - Forecast retail value sales growth
Category Annual growth % 2023-2024 CAGR* % 2023-2028 Total growth % 2023-2028
Dessert Mixes 0.8 0.6 2.9
Frozen Baked Goods 2.3 2.0 10.6

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

New product launch analysis

According to Mintel, in Asia, brands are targeting the breakfast occasion, tapping into the popularity of sweet baked goods as a food with which to start the day. Packaged bread and sweet bakery items with innovative flavours and formats that promote convenience, heath and indulgence are among the most popular weekend breakfast food options. Relatedly, brands are communicating added-value attributes on their packaging to attract money-conscious consumers (Mintel; A year of innovation in cakes, pastries and sweet goods, 2023). The biscuit and cracker consumer also appreciates new flavours such as chocolate and nut, while inherent nutrients (protein, fibre and vitamins and minerals) remain in demand (Mintel; A year of innovation in biscuits, cookies and crackers, 2023).

According to Mintel's Global New Products Database (GNPD), there were 11,389 new bakery products launched in Japan from January 2018 to November 2023. The number of yearly new product launches has decreased in growth by a CAGR of 3.5% from a launch of 2,053 bakery products in 2018 to its most recent launch of 1,778 bakery products in 2022.

The predominant sub-categories of new bakery products released were cakes, pastries and sweet goods (7,790 products), sweet biscuits/cookies (2,342 products) and bread and bread products (861 products). The most popular product claims were ethical - environmentally friendly packaging (3,001products), followed by ethical - sustainable with (2,738 products) and ethical - toxins free with (1,450 products).

The companies with the highest number of new product launches were Shikishima Baking with (1,256 products), followed by FamilyMart (1,151 products) and Lawson (993 products). Just over half (56.6%) of the new product launches were new variety/range extension (6,448 products), whereas 29.0% were relaunch products (3,308 products). Top packaging types included flexible packaging (10,094 products), tray (581 products), tub (265 products), flexible stand-up pouch (158 products) and flexible sachet (128 products). Top flavours were chocolate (1,347 products), followed by unflavoured/plain (603 products), strawberry (374 products) and cream/whipped cream (260 products).

New product launches of bakery products (category) in Japan, 2018 to 2023
Product attributes Number of new products by year Total
2018 2019 2020 2021 2022 2023 (January to November)
Yearly product launches 2,053 1,964 1,994 1,814 1,778 1,786 11,389
Top 5 sub-categories
Cakes, pastries and sweet goods 1,350 1,318 1,273 1,240 1,304 1,305 7,790
Sweet biscuits/cookies 465 415 461 376 305 320 2,342
Bread and bread products 154 171 188 125 110 113 861
Baking ingredients and mixes 46 33 43 35 29 23 209
Savoury biscuits/crackers 38 27 29 38 30 25 187
Top 10 claims
Ethical - environmentally friendly package 157 331 477 550 696 790 3,001
Ethical - sustainable (habitat/resources) 91 267 437 510 680 753 2,738
Ethical - toxins free 124 247 233 223 265 358 1,450
Seasonal 276 241 227 206 178 169 1,297
Limited edition 170 175 209 159 155 157 1,025
Microwaveable 153 95 147 106 134 146 781
Ethical - environmentally friendly product 61 139 157 141 116 125 739
Cobranded 125 118 149 116 110 96 714
Premium 106 124 102 90 126 141 689
Low/reduced sugar 39 61 46 64 73 36 319
Top 10 companies
Shikishima Baking 167 205 210 223 222 229 1,256
FamilyMart 170 218 232 202 135 194 1,151
Lawson 185 159 171 180 181 117 993
Seven & Holdings 124 168 138 118 148 183 879
Bourbon 131 103 126 109 76 85 630
Yamazaki Baking 78 80 57 66 102 128 511
Monteur 96 95 72 73 80 74 490
First Baking 94 48 86 62 84 116 490
Ministop 94 80 76 71 86 49 456
Fujipan 80 68 73 63 69 97 450
Top product launches
New variety/range extension 1,240 1,173 1,116 951 1,038 930 6,448
Relaunch 465 548 626 565 494 610 3,308
New packaging 238 137 136 168 116 112 907
New product 107 103 115 129 124 126 704
New formulation 3 3 1 1 6 8 22
Top 5 Flavours (including blend) unordered
Chocolate 242 214 201 199 230 261 1,347
Unflavoured/plain 112 99 102 97 97 96 603
Strawberry 71 63 64 53 66 57 374
Cream/crème/whipped cream 48 33 40 34 49 56 260
Sweet potato/kumara 40 38 33 39 33 38 221
Top 5 ingredients
Wheat flour 1,975 1,869 1,916 1,736 1,723 1,718 10,937
White sugar 1,978 1,879 1,905 1,733 1,696 1,725 10,916
Flavouring substances 1,821 1,725 1,748 1,588 1,607 1,622 10,111
Emulsifiers 1,813 1,689 1,759 1,616 1,600 1,607 10,084
Salt 1,732 1,600 1,667 1,522 1,469 1,469 9,459
Top 5 package types
Flexible 1,762 1,756 1,783 1,625 1,575 1,593 10,094
Tray 156 57 58 81 106 123 581
Tub 44 65 56 40 33 27 265
Flexible stand-up pouch 29 31 40 23 18 17 158
Flexible sachet 20 25 27 23 23 10 128
Total pack size
7.20 grams 13 11 19 18 6 11 78
60.00 grams 12 12 13 12 12 12 73
36.00 grams 11 10 14 14 12 9 70
31.00 grams 6 14 12 14 8 15 69
10.50 grams 14 8 17 11 7 4 61
Source: Mintel Global New Product Database (GNPD), 2023
New Product Pricing, 2018 to 2023
Sub-category Number of products Average price per product (in US$)
Cakes, Pastries and Sweet Goods 7,790 1.65
Sweet Biscuits / Cookies 2,342 2.06
Bread and Bread Products 861 1.67
Baking Ingredients and Mixes 209 3.29
Savoury Biscuits / Crackers 187 1.51
Source: Mintel Global New Product Database (GNPD), 2023

Examples of new product launches

Beni Haruka Sweet Potato Mochi Roll

Source: Mintel, 2023
Company Lawson
Brand Uchi Café Aki No Sweets Collection
Category Bakery
Sub-category Cakes, pastries and sweet goods
Market Japan
Store type Convenience store
Date published November 2023
Launch type Relaunch
Price in US dollars 2.65
 

Uchi Café Aki No Sweets Collection Beni Haruka Sweet Potato Mochi Roll has been relaunched for Autumn 2023, and retails in a pack containing six slices. Made with Beni Haruka sweet potato paste and caramelised Beni Haruka sweet potatoes - Resealable sticker - Pack is printed with biomass ink- Launched on October 3, 2023, with a recommended retail price (RRP) of 397 yen- Logos and certifications: Biomass 10.

Amaou Strawberry Dolce Cookies

Source: Mintel, 2023
Company Fujiya
Brand Fujiya Country Ma'am
Category Bakery
Sub-category Sweet biscuits / cookies
Market Japan
Store type Supermarket
Date published December 2022
Launch type New variety / range extension
Price in US dollars 2.37
 

Fujiya Country Ma'am Amaou Strawberry Dolce Cookies are now available, and retail in a pack with 14 10.5 gram packets. - Limited edition - Made with special ingredients including fresh cream from Hokkaido, and strawberry juice from hand-picked, fully ripened Amaou strawberries which are frozen to capture the peak of freshness - Can be microwaved or oven toasted - Sweet and sour Amaou strawberry taste and rich fresh cream flavour- Feature white chocolate chips and sweet chocolate chips - Recreates the flavour of strawberry dolce - Launched on November 8, 2022, with an RRP of 324 yen.

Fluffy & Chewy Rolls

Source: Mintel, 2023
Company Yamazaki Baking
Brand Yamazaki Bake One
Category Bakery
Sub-category Bread and bread products
Market Japan
Store type Drug store / pharmacy
Date published July 2021
Launch type New variety / range extension
Price in US dollars 1.56
 

Yamazaki Bake One Fluffy & Chewy Rolls are now available. They feature a sourdough starter and are said to be perfect with cheese and mayonnaise. The product can be toasted for a crispy texture and retails in a 4-count pack that comes with a resealable sticker, is printed with biomass ink and bears a QR code and a summer promotion. Launched on July 1, 2021. RRP unavailable.

Cooking Jelly

Source: Mintel, 2023
Company House Foods
Brand House
Category Bakery
Sub-category Baking ingredients and mixes
Market Japan
Store type Supermarket
Date published April 2020
Launch type Relaunch
Price in US dollars 1.58
 

House Cooking Jelly has been repackaged. This gelatin can be used for making desserts with addition of 250 millilitres of hot water or cooking by adding 50 millilitres of water and heating in a microwave, and then mixing with ingredients and letting the mixture set in a fridge. This product retails in a 30 gram pack with six 5 gram packets. The pack bears cooking instructions, a QR code and the FSC logo. Launched on January 20, 2020, with an RRP of 184 yen.

Hokkaido Cheese Rusks

Source: Mintel, 2023
Company Lawson
Brand Natural Lawson
Category Bakery
Sub-category Savoury biscuits / crackers
Market Japan
Store type Convenience store
Date published June 2018
Launch type New variety / range extension
Price in US dollars 1.34
 

Natural Lawson Hokkaido Cheese Rusks are now available. They are described as crispy rusks with rich cheese from Hokkaido. This low-carb product contains 5.3 grams sugar, 160 calories and 6.2 grams dietary fibre, and retails in a 30 gram pack. Launched on April 17, 2018, with an RRP of 148 yen.

Opportunities for Canada

Japan was the fifth largest global retail sales market for baked goods with values of US$24.7 billion, representing a 5.0% market share in 2023. Japan experienced an increase in CAGR of 2.9% as retail sales grew from US$21.4 billion in 2018 and are expected to further improve with an increase in CAGR of 1.8% in the forecast period as retail sales are anticipated to reach US$27.0 billion by 2028.

Japan is a net importer of baked goods products. In 2022, Japan imported US$529.9 million and exported US$403.3 million of baked goods, recording a trade deficit of US$126.6 million. Further, Japan was the twentieth largest (after the Czech Republic and Portugal) global market for baked goods with imports of US$529.9 million (1.1% market share), 118.2 million kilograms in 2022, increasing in CAGR by 7.2% from US$373.9 million, 94.4 million kilograms in 2017. Of Japan's 2022 baked good imports, Canada was the sixteenth largest supplier to Japan (representing a 1.2% market share) providing US$6.2 million (−2.9% from US$7.2 million in 2017), 1.3 million kilograms in 2022,

Top baked goods imports from Canada included bread, pastry, cakes and biscuits (HS code: 190590) valued at US$6.2 million (99.0% market share), 1.3 million kilograms, followed by rusks, toasted bread (HS code 190540) with values of US$53,098 (0.9% market share), 3,510 kilograms and waffles and wafers (HS code: 190532) with values of US$5,658 (0.1% market share), 329 kilograms, signifying Canada's position as a trusted and capable supplier of baked goods (products) to the Japanese market.

Given the expected and continued growth in the baked goods product market in Japan, Canadian producers have the opportunity to expand their exports of baked goods, including value-added products to the Japanese market. That said, it is important for Canadian suppliers to work closely with their importing partners and Trade Commissioners to understand and ensure that Japan's import requirements for their specific products are met.

Canada's broad (and growing) trade network provides Canadian companies preferred access to diverse markets all over the world. Information on Canada's free trade agreements (FTA) may be found at Global Affairs Canada, Trade and investment agreements.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement (FTA) between Canada and 10 other countries in the Asia-Pacific region: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The CPTPP entered into force on December 30, 2018, in the first six countries to have ratified the agreement: Canada, Australia, Japan, Mexico, New Zealand, and Singapore (Global Affairs Canada; About the Comprehensive and Progressive Agreement for Trans-Pacific Partnership [CPTPP]).

One of the benefits of the CPTPP agreement is a comprehensive tariff elimination across all sectors. Once fully implemented, 99% (94% of Canada's exports of agriculture and agri-food products) of tariff lines among CPTPP parties will be duty free. Further, 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 (please see Annex 2-D of the Agreement for the tariff elimination schedules of each CPTPP country) (Global Affairs Canada; About tariff elimination under the CPTPP). For additional tariff information, please consult the Canada Tariff Finder to explore tariff information for the CPTPP market, and other countries with which Canada has a free trade agreement (Global Affairs Canada; About tariff elimination under the CPTPP).

The CPTPP commits to helping small and medium-sized enterprises (SMEs) take advantage of the agreement's commercial opportunities. SMEs represent over 99% of Canadian businesses and almost 90% of all private sector jobs in Canada. For further information, please consult CPTPP benefits for small and medium-sized enterprises.

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.

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More on Canada's agriculture and agri-food sectors:

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For information on FoodEx Japan 2024, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and agri-food Canada
ben.berry@agr.gc.ca

Resources

Sector Trend Analysis – Bakery products in Japan
Global Analysis Report

Prepared by: Laurie Bernardi, International Market Research Analyst

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