Concern for health and access to wealth turn the wheels of the Japanese confectionery market.
Japan has a large confectionery market with extensive product offerings even within niche confectionery segments. In 2009, Japan ranked fourth in terms of new product launches and fifth in terms of market value in the global confectionery market.
The Japanese confectionery market is the hub of product innovation, with products using ingredients such as konjac powder, which swells 200 times in the stomach and prevents overeating, GABA which promotes mental relaxation, CPP-ACP which suppresses loss of minerals from teeth, and so on. Innovations are fueled by a robust and well regulated functional food market, besides rising health awareness.
“An increasing number of working Japanese men and women are becoming highly health-conscious, eating healthy foods and engaging in regular exercise. There is widespread dread of the metabolic syndrome or ‘metabo’, which connotes lifestyle diseases,” says Amit Srivastava , Datamonitor Consumer Markets Analyst.
A national law even sets the maximum waistline size for middle aged people which drives manufacturers to take into consideration these factors and launched products which feature claims such as ‘no sugar’, ‘low fat’ and ‘low calories’.
Japanese population is aging rapidly and requires products that are particularly easy to use. “With significant savings in hand, the elderly population is willing to purchase high-quality products with premium packaging. It is also the biggest consumer of products such as chocolate and candy. This population group desires products which minimize hassle, are easier to open, to close, to store and to consume”, says Amit.
Japanese consumers suffer from higher levels of work stress compared to those in other industrialized countries on account of hierarchical company structures, long working hours and long commutes between home and the workplace. This has led to the popularity of indulgent foods among Japanese office workers seeking a break from work stress. Moreover, there is an increasing tendency among the Japanese to skip breakfast and dine late. Many of the breakfast-skippers and late diners also have a tendency to snack.
Private labels are growing in popularity as retailers increasingly target price-conscious consumers. Over the past several years, Japan ’s extended recession has created a more price-conscious consumer and the global economic slowdown has further spurred this trend.
The Japanese confectionery market continues to evolve and grow. It is witnessing a lot of action due to high level of competition among the different companies in the fray, which include local as well as global manufacturers. In fact, some of the local companies like Nestle and Lotte are global giants.
“The Japanese consumer is the ultimate winner who is getting a diverse portfolio of innovative products at his disposal whilst confectionery players battle for a share of his wallet,” concludes Amit. (Datamonitor)
