Developments in the Confectionery Sector in Japan

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This overview of the consumer and market dynamics of the Japanese Confectionery sector allows new entrants and established players to gain rapid and comprehensive insight into the current state of the market and identify the key trends that will drive growth in the coming years.
This report provides a concise overview of the Confectionery market in Japan. After reading this report, you will understand the size of the market, the economic, demographic, and behavioural trends that will drive its evolution and the leading players within the market, allowing you to plan effectively for the future.

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Developments in the Confectionery Sector in Japan

  1. 1. Market Focus: Trends and Developments in the Confectionery Sector in Japan Product Synopsis This report provides a concise overview of the Confectionery market in Japan. After reading this report, you will understand the size of the market, the economic, demographic, and behavioural trends that will drive its evolution and the leading players within the market, allowing you to plan effectively for the future. Introduction and Landscape Why was the report written? This overview of the consumer and market dynamics of the Japanese Confectionery sector allows new entrants and established players to gain rapid and comprehensive insight into the current state of the market and identify the key trends that will drive growth in the coming years. What is the current market landscape and what is changing? Chocolate accounts for half of total Confectionery sales in Japan. Seasonal fluctuation of chocolate sales is high. While chocolate companies have focused on improving sales of the existing brands, Gum and Sugar Confectionery categories are driven by new product launches and innovation. Premiumization of chocolate brands and the launch of high-end flagship stores are on the rise. What are the key drivers behind recent market changes? The demand for seasonal chocolate consumed on holiday and for gifting during major events such as Valentine's Day and White Day is significant in Japan. Luxury Chocolate is a fast growing segment in Japan similar to the mature markets in the US and Western European countries. Consumers are choosing to buy a smaller number of expensive but high quality chocolates, whereas the functional benefits of Confectionery products are a growing driver. What makes this report unique and essential to read? This report brings together consumer insight and market data to provide a comprehensive brief of the Japanese Confectionery sector. This allows for the rapid identification of key growth opportunities across major Confectionery categories and their packaging. Key Features and Benefits Analysis of consumer behaviour, economic conditions, and demography reveals emerging opportunities in the Confectionery sector. Key growth categories are highlighted by analysing the market dynamics of major Confectionery categories. Market shares are provided for the leading brands and private label across Confectionery categories. An overview of packaging trends in the Japanese Confectionery sector is provided, including primary packaging material and type, packaging closures, and outer packaging.
  2. 2. Key Market Issues Weak economic growth and squeezed disposable incomes makes Japan's Consumer Packaged Goods (CPG) market one of the lowest growth markets in the region. In addition, the country's aging population has contributed to a stagnant confectionery market. Japan's elderly population above the age of 65 accounted for 24% of the population while children aged 14 and under accounted for only 13%. Health related food restriction has impeded higher growth in the confectionery market. The importance of the Others channel shows that Chocolate manufacturers are using a wide variety of distribution methods, such as through Department Stores, Drug Stores, and Vending machines, in order to target different consumer groups and consumption occasions. The demand for Chocolate will grow at a higher rate between 2012 and 2017 in local currency terms, with annual growth rate of more than 2%, helped by seasonal sales and important sales days such as Valentine's Day and White Day. Rising production costs implies optimizing price versus size. Japanese consumers prefer low-priced individually packed confectionery products. This makes the trade-off between price and size even more important. Private labels across Japan's Confectionery sector grew at a faster rate during 2009-2012 than their categories as a whole, showing that Private labels are gaining market share in Japan. However, high growth in Private labels is unlikely to challenge major brands because of their low penetration. Key Highlights Japan's weak economic growth has resulted in one of the slowest growing CPG markets in the region. However, Japan still remains one of the most affluent societies worldwide, and its CPG market is one of the largest and most mature. Higher consumer expenditure and mild inflation is expected to boost demand for consumer goods in Japan in 2013. The Japanese prefer less sweet and soft confectionery products compared to North America and Europe. The functional benefits of Confectionery products are major growth drivers in the overall market. Moreover, the demand for individually packed items, such as bags of chocolate mini bars that can be taken as quick snacks, is high. Exotic flavours, including green tea, soy sauce, and watermelon are highly favoured by Japanese consumers. The demand for Sugar Confectionary will grow briskly between 2012 and 2017 helped by stiff competition between pharmaceutical companies and traditional sugar confectioners leading to multiple product launches claiming functional benefits ranging from medicated candies to vitamin enriched lozenges. The Confectionery sector is the largest Flexible packaging category in the Food market in Japan and accounted for 23% of total Flexible packaging consumption in volume terms in 2012. Films account for almost half of the packs used, with Wrappers and Foils the other key packaging types. Meanwhile, very few packs use a closure or an outer. Market Focus: Trends and Developments in the Confectionery Sector in Japan
  3. 3. Japan's aging population is driving increased demand for functional products such as sugar-free gums containing xylitol, which prevent tooth decay, or breath freshening mints. Meanwhile, the low number of children is causing slower growth in the bubblegum segment. Country Context - A Weak Economy And An Aging Population Make It Increasingly Challenging To Succeed In Japan's Confectionery Market. - Hypermarkets And Supermarkets Account For Majority Of Food And Grocery Sales - Confectioners Are Adopting A Multi-channel Distribution Strategy For Greater Consumer Reach. - Busy Lives And The Increasing Number Of Single Person Households Is Driving Change In Japanese Eating Habits sector Analysis - Premiumization And Health And Wellness Benefits Are Key Market Strategies Of Major Confectioners. - Targeting A Wide Variety Of Tastes And Seasonal Sales Are Key To Success In The Confectionary Market In Japan - Mints And Medicated Confectionery Are Driving Growth In The Sugar Confectionery Category. - Chocolate Sales Growth To Be Driven By Seasonal Demand; Sugar-free And Breath Freshening Gum To Record Higher Sales brands And Private Labels - The Top Five Confectionery Companies - Meiji, Lotte, Morinaga, Ezaki Glico, And Mary Chocolate Account For Almost Half Of The Total Confectionery Sales In Japan - Low Private Label Penetration In Japan's Confectionery Sector - High Growth In Private Labels Is Unlikely To Challenge Major Brands Because Of Their Low Penetration packaging Insight - Rising Confectionery Consumption Is Creating Demand For Flexible Packaging Films, Wrappers, And Foils. - Increasing Consumption Of Sugar Confectionery Means Demand For Flexible Packaging Will Grow future Outlook- Four Key Trends In Japan's Confectionery Sector - Japan's Aging Population Is Driving New Product Formulation In Gums - Rising Production Costs Make Price Vs. Size A Key Trade-off - Product Innovation Is Key In The Gum And Sugar Confectionery Categories - A Multi-channel Distribution Strategy Is Needed To Ensure Greater Consumer Reach data Appendix And Summary Methodology ResearchMoz(http://www.researchmoz.us/) is the one stop online destination to find and buy market research reports & Industry Analysis. We fulfill all your research needs spanning across industry verticals with our huge collection of market research reports. We provide our services to all sizes of organizations and across all industry verticals and markets. Our Research Coordinators have in-depth knowledge of reports as well as publishers and will assist you in making an informed decision by giving you unbiased and deep insights on which reports will satisfy your needs at the best price. Contact: Market Focus: Trends and Developments in the Confectionery Sector in Japan
  4. 4. M/s Sheela, 90 State Street, Suite 700, Albany NY - 12207 United States Tel: +1-518-618-1030 USA - Canada Toll Free 866-997-4948 Email: sales@researchmoz.us Website: http://www.researchmoz.us/ Market Focus: Trends and Developments in the Confectionery Sector in Japan

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