Japan Baby Food, 2020

Japan Baby Food, 2020

Summary

Japan Baby Food, 2020 ” is an analytical report by Global Data which provides extensive and highly detailed current and future market trends in the Japanese market.

Milks sales have been hit by rising rates of breastfeeding and bad publicity, and sales are lower now than in 2013. This is despite some recent growth due to longer periods of feeding and tourist purchases. Milks accounted for 58% of sector value in 2019. Baby meals have fared considerably better, rising by 29% in value and 46% in volume since 2013, as parents have increasingly sought convenient ways of feeding their babies. The category has been stimulated by new brand ranges and continual brand renewals, as well as some innovations in packaging. Sales of both finger foods and drinks remain low.

What else does this report offer?

  • Consumption data based upon a unique combination of industry research, fieldwork, market sizing work and our in-house expertise to offer extensive data about the trends and dynamics affecting the industry.
  • Detailed profile of the companies operating and new companies considering entry in the industry along with their key focus product sectors.
  • Market profile of the various product sectors with the key features & developments, segmentation, per capita trends and the various manufacturers & brands.
  • Overview of baby food retailing with a mention of the major retailers in the country along with the distribution channel.
  • Future projections considering various trends which are likely to affect the industry.
Scope
  • With the exception of a tiny increase in 2015, the number of births in Japan has continued to decline, dipping below 900,000 in 2019 for the first time since records began.
  • Retail sales stood at J¥100.5 billion (US$926 million) in 2019, while volume sales reached 50,398 tons.
  • Milks sales have been hit by rising rates of breastfeeding and bad publicity, and sales are lower now than in 2013. Milks accounted for 58% of sector value in 2019. Baby meals have fared considerably better, rising by 29% in value and 46% in volume since 2013, as parents have increasingly sought convenient ways of feeding their babies. Sales of both finger foods and drinks remain low.
  • Imports are negligible, at just 2.5 tons in 2019, while exports have increased strongly from 2013 onwards, reaching 7,396 tons, worth US$102.5 million, in 2019.
  • The top three manufacturers - Meiji, Wakodo, and Morinaga Milk - accounted for 67.4% of the 2019 sector in terms of value. Meiji and Morinaga Milk dominate the milks category, while Wakodo is dominant in the meals and others categories.
  • Against the backdrop of a continuing fall in the number of births and low price rises, retail sales are not expected to show much growth in real terms between 2019 and 2025, although at current prices an increase of 3.2% is forecast, to J¥103.7 billion.
Reasons to Buy
  • Evaluate important changes in consumer behavior and identify profitable markets and areas for product innovation.
  • Analyse current and forecast behavior trends in each category to identify the best opportunities to exploit.
  • Detailed understanding of consumption by individual product categories in order to align your sales and marketing efforts with the latest trends in the market.
  • Investigates which categories are performing the best and how this is changing market dynamics.


  • Introduction
    • Executive Summary
    • Definitions: Categories
    • Definitions: Terminology
  • Background
    • Births - Live Birth Rates: In 2019, the number of births fell below 900,000 for the first time since records began
      • Table Birth and Population Trends, 2009-2019
    • Births - Measures to Increase the Birth Rate: The Japanese Government is aiming to provide improved childcare facilities and better conditions for working women
      • Table Reasons Couples Do Not Have Their Ideal Number of Children, 2015
    • Births - Birth Rates by Region: Almost 81% of births take place on the main island, Honshu, including almost 30% in the Greater Tokyo area
      • Table Live Births and Crude Birth Rate by Region, 2014-2019
    • The Consumer: Japan has the third-largest GDP in the world, behind only the US and China, and living standards are among the highest globally
      • Table Expenditure on Food by Income Group, 2019
    • The Consumer: Japanese consumers are, in general, very health-conscious and are used to paying relatively high prices for premium and organic products
    • The Consumer: In 2005, 38% of mothers thought home-made food was better than commercial baby food in terms of taste and 29% in terms of health/nutrition
      • Table Use of Commercial Baby Food, 1985-2005
      • Table Attitudes to Commercial Baby Food, 2005
    • The Consumer: In recent years, Japanese mothers have become increasingly aware of baby allergies, and manufacturers have responded to these concerns
      • Table Concern About Food Allergies, 2009
      • Table Proportion of Babies With Allergies
    • The Consumer: Despite the general trend towards healthy eating, a high proportion of mothers regularly give their babies sugary drinks or sweet snacks
      • Table Consumption of Sugary Drinks and/or Sweet Snacks, 2015
      • Table Age of Introduction of Baby Food, 2005 & 2015
    • Socio-demographic Trends - Births by Age of Mother: Women are having their first child at an older age, 30.7 years on average in 2019
      • Table Births by Age of Mothers, 1990-2019
    • Socio-demographic Trends - Number of Women of Childbearing Age: The number of women in this group fell by 6.7% between 2013 and 2020
      • Table Number of Women of Childbearing Age by Age Group, 2013, 2018 & 2020
    • Working Women - Female Employment: Japanese women now make up 44.2% of the total workforce
      • Table Working Women, 2013-2020
      • Table Working Women of Childbearing Age by Age Group, 2020
    • Working Women - Female Employment: Over half of Japanese women with babies and toddlers under five are not working
      • Table Mothers' Working Patterns, 2010-2018
    • Working Women - Legislation: Maternity leave currently stands at 14 weeks; mothers are paid at 60% of their normal wage during this period
      • Table Trends in Mothers' Employment Practices at Marriage and First Pregnancy, 1985-2014
    • Regulations: A new Food Labeling Law was passed in Japan in June 2013 and came into force in 2015
    • Breastfeeding Trends - Promotion: The Japanese Government has undertaken various campaigns to try to encourage breastfeeding
    • Breastfeeding Trends - Prevalence: Since 2005, the proportion of mothers exclusively breastfeeding has risen appreciably
      • Table Breastfeeding Trends by Age of Baby, 2005-2015
    • Breastfeeding Trends - Prevalence: Since 2005, mothers have tended to use commercial baby milk for a longer period
      • Table Age When Stopping Use of Follow-On/Growing Up Milk, 2005 & 2015
      • Table Age When Stopping Use of Infant Formula, 2005 & 2015
    • Breastfeeding Trends - Prevalence: Breastfeeding only has increased at three months, whereas mixed feeding and use of infant formula only have declined
      • Table Breastfeeding at Three Months, by Employment Status of Mothers, 2005 and 2015
  • Overview
    • Sector Overview: The total value of the baby food sector has failed to expand at constant prices between 2013 and 2019
    • Sector Overview: Milks took a lower 58% of the sector by value in 2019, as meals have continued to make headway
      • Table Sector Size, 2019, and Growth Rates, 2013-2019
    • Manufacturer Shares: The market is supplied almost entirely by domestic companies, few of which have a significant global presence
      • Table Baby Food: Manufacturer Shares, Value %, 2013-2019
    • Manufacturer Shares: The three largest manufacturers - Meiji, Wakodo, and Morinaga - accounted for 67.4% of sales value in 2019
      • Table Baby Food: Manufacturer Shares by Sector, Value & Volume %, 2019
  • Category Analysis
    • Category Analysis: Baby Milks
    • Baby Milks Category Trends: Demand has generally declined since 2014, and fell below 20,000 tons in 2019
      • Table Baby Milks: Category Size, 2019
      • Table Baby Milks: Category Growth, % 2013-2019
    • Baby Milks Category Trends: Sales in 2019 were down on 2018 levels in both volume and value
    • Baby Milks Per Capita Trends: In 2019, per capita consumption stood at 7.3kg, a very low level by international standards
    • Baby Milks Per Capita Trends: Per capita consumption in the first year stands at an average of 8.5kg
    • Baby Milks Segmentation: Follow-on/growing-up milks account for over 60% of consumption
    • Baby Milks Segmentation: Three liquid baby milks have been launched in 2019/20
    • Baby Milks Segmentation: Initial sales of liquid milks appear to be promising
      • Table Liquid Baby Milks: Brand Price Positioning Analysis, 2020
    • Baby Milks Segmentation: Prices range from US$16 to US$44 per kilogram, with products bought as stick/cube packs tending to be the most expensive
      • Table Baby Milks: Brand Price Positioning Analysis, 2020
    • Baby Milks Segmentation: The majority of baby milks are sold in cans but other formats are gaining ground
      • Table Baby Milks: Facings by Type of Packaging, 2019
    • Baby Milks Segmentation: As raw material prices have increased, manufacturers have preferred to reduce the size of their packs rather than raise retail prices
      • Table Baby Milks: Changes in Pack Sizes, 2008-2019
    • Baby Milks Manufacturers: The standard pack size is now 800g-850g, with cans of this volume accounting for almost two-thirds of facings
      • Table Baby Milks: Facings by Pack Size, 2019
    • Baby Milks Manufacturer Shares: Baby milks are sold by a limited number of local manufacturers, unchallenged by imported brands
      • Table Baby Milks: Manufacturer Shares, Value %, 2013-2019
    • Baby Milks Manufacturers & Brands: The top four - Meiji, Morinaga Milk, Wakodo, and Snow Brand Beanstalk - hold 95% of value
    • Baby Milks Brands: Most manufacturers, with the exception of Morinaga, market just one brand in each segment
    • Category Analysis: Baby Meals
    • Baby Meals Category Trends: Meals constitute the second-largest category, and have shown good growth over the past four years
      • Table Baby Meals: Category Size, 2019
      • Table Baby Meals: Category Growth, % 2013-2019
    • Baby Meals Per Capita Trends: Per capita consumption of baby meals rose by 67% between 2013 and 2019, to a level of 6kg
    • Baby Meals Segmentation: Wet meals continue to dominate, accounting for 85% of retail sales in 2018
      • Table Baby Meals: Segmentation by Type, % Value, 2013-2018
    • Baby Meals Segmentation: In volume terms, sales of baby meals rose by 34% between 2013 and 2018
      • Table Baby Meals: Segmentation by Type, Volume, 2013-2018
    • Baby Meals Segmentation: A very large variety of product types are on sale, although there has been some rationalization
      • Table Baby Meals: Number of Products on Sale, 2014 and 2015
      • Table Sales of All Baby Meals by Type, Value, 2018
    • Baby Meals Segmentation: As birth numbers decline, manufacturers are increasingly targeting the busy parents of older babies
      • Table Wet Baby Meals: Product Numbers by Target Age, 2020
    • Baby Meals Segmentation: 2019/20 - Convenience is key
    • Baby Meals Segmentation: 2019/20 - Healthy food, abundant ingredients and fun
    • Baby Meals Segmentation: 2018/19 trends continue into 2019/20
      • Table Fish Babies Like to Eat, 2018
    • Baby Meals Segmentation: Main meals and porridge/soup are the main wet meals sub-segments, while stocks/sauces and ingredients are key dry sub-segments
      • Table Sales of Wet Baby Meals by Type, Value, 2013-2018
      • Table Sales of Dry Baby Meals by Type, Value, 2013-2018
    • Baby Meals Segmentation: Dried meals, including Wakodo's freeze-dried cubes, are the most expensive products on the market on a per kilogram basis
      • Table Savory Baby Meals: Price Positioning, 2020
    • Baby Meals Segmentation: Retort pouches mostly retail at between US$11 and US$16 per kilogram
      • Table Savory Baby Meals: Price Positioning, 2020 (Cont..)
    • Baby Meals Segmentation: Desserts mainly retail between US$14 and US$18
      • Table Sweet Baby Meals: Price Positioning, 2020
    • Baby Meals Segmentation: Glass jars have lost ground and now account for under 10% of volume sales
      • Table Baby Meals: Volume Segmentation by Pack Type, 2013-2018
    • Baby Meals Segmentation: Although 100g packs are the most prevalent size for savory meals, all sweet meals identified were sold in 70g packs
      • Table Baby Meals: Facings by Pack Type, 2019
      • Table Baby Meals: Facings by Pack Size, 2019
    • Baby Meals Segmentation: Product ranges are continually being extended or relaunched in the fiercely competitive environment
    • Baby Meals Manufacturer Shares: Wakodo is the leading supplier of baby meals, drinks and other foods, holding a 38% share of category value in 2019
      • Table Baby Meals and Others: Manufacturer Shares, Value, 2013-2019
    • Baby Meals Brands: Wakodo has two main brands of wet baby food, Goo Goo Kitchen and Eiyo Marché
    • Baby Meals Brands: Kewpie is strong in the developing desserts segment, as well as in savory meals
    • Baby Meals Brands: Pigeon markets a range of wet meals (retort pouch), dried meals and toppings, drinks, snacks, and baby ice cream
    • Category Analysis: Baby Drinks
    • Baby Drinks Category Trends: Drinks make up the second-smallest category
      • Table Baby Drinks: Category Size, 2019
      • Table Baby Drinks: Category Growth, % 2013-2019
    • Baby Drinks Per Capita Trends: Per capita consumption has declined by 7% since 2013
    • Baby Drinks Segmentation: Although teas and water dominate sales, fruit/vegetable juices accounted for 17.9% of sales in 2018, up from 11.1% in 2013
      • Table Baby Drinks: Segmentation, Volume, 2013-2018
    • Baby Drinks Segmentation: PET was the most prominent packaging format in 2013 but cartons have now overtaken PET bottles
      • Table Baby Drinks: Segmentation by Pack Type, Value, 2013-2018
    • Baby Drinks Segmentation: The cheapest drinks are those sold in PET bottles - typically teas and flavored waters
      • Table Baby Drinks: Price Positioning, 2020
    • Baby Drinks Segmentation: The most popular drinks size is 500ml, while multipacks of smaller sizes are also significant
      • Table Baby Drinks: Facings by Pack Size, 2019
    • Baby Drinks Manufacturers & Brands: The leading supplier is Wakodo, which may account for half of all sales
    • Category Analysis: Finger Foods
    • Finger Foods Category Trends: Finger foods make up the smallest category in the baby food sector, with sales standing at J¥4.3 billion (US$39.9 million) in 2019
      • Table Finger Foods: Category Size, 2019
      • Table Finger Foods: Category Growth, % 2013-2019
    • Finger Foods Per Capita Trends: Per capita expenditure on finger foods stood at J¥1,586 (US$14.6) in 2019
    • Finger Foods Segmentation: The majority of products consist of rice crackers and cookies, both available in a wide range of flavors
    • Finger Foods Segmentation: Products are typically packaged in boxes containing small bags, each with one or two snacks inside, in a large array of sizes
      • Table Finger Foods: Facings by Pack Size, 2019
      • Table Finger Foods: Facings by Pack Type, 2019
    • Finger Foods Segmentation: The average price per pack is below J¥200, although per-kilogram prices vary widely
      • Table Finger Foods: Price Positioning, 2020
    • Finger Foods Manufacturers and Brands Shares: GlobalData estimates that Wakodo dominates the category with a share of approximately 50%
    • Finger Foods Manufacturers and Brands Shares: The snacks category has attracted more manufacturers than any other baby food category
  • Production and Trade
    • Production: The Japanese baby food sector relies virtually entirely on domestic production
      • Table Domestic Production of Baby Milk, 2013-2019
    • Exports: By 2019, exports of milks and cereals reached 7,389 tons, over 60% of which were destined for Vietnam
  • Company Profiles
    • Company Profiles: Meiji Holdings Co Ltd
      • Table Meiji Holdings: Financial Performance, 2014-2020
    • Company Profiles: Wakodo Company Ltd
    • Company Profiles: Morinaga Milk Industry
      • Table Morinaga Milk Industry: Financial Performance, 2014-2020
    • Company Profiles: Kewpie Corporation
      • Table Kewpie Corp: Financial Performance, 2014-2019
    • Company Profiles: Snow Brand Milk/BeanStalk Snow Co.
      • Table Megmilk Snow Brand Milk Products: Financial Highlights, 2014-2020
    • Company Profiles: Pigeon Corporation
      • Table Pigeon Corporation: Financial Performance, 2013-2019
    • Company Profiles: Glico Group
    • Company Profiles: Other Manufacturers
  • Distribution
    • Baby Food Retailing: Grocery outlets have gradually gained share at the expense of pharmacies
      • Table Baby Food: Sales by Outlet Type, % Value, 2013-2019
    • Baby Food Retailing: Drugstores & pharmacies account for 54% of milks, while hypermarkets & supermarkets sell over two-thirds of meals and others baby food
      • Table Baby Food: Sales by Category and Outlet Type, % Value, 2019
  • Economic Background
    • Economic Background: Japan's economy is forecast to contract by at least 6% in 2020
      • Table Key Macroeconomic Indicators, 2013-2020
    • Key Macroeconomic Forecasts: Inflation is expected to be negative in 2020 and 2021
      • Table Key Macroeconomic Forecasts, 2019-2025
  • Prospects and Forecasts
    • Birth and Population Projections: The Japanese population has now entered an indefinite period of decline, and the number of births will also continue to fall
      • Table Birth and Population Projections, 2013-2025
    • Forecast Overview: The value of the baby food market in Japan is not expected to show any significant growth in real terms between 2019 and 2025
    • Future Trends: The share taken by milks is expected to continue to decline, dropping to 51% of value by 2025
  • Appendix
    • Appendix - The Baby Population: The baby population is in steady decline, down from 3.3 million in 2009 to 2.7 million in 2019 and forecast at 2.4 million by 2025
      • Table Baby Population, Number of Babies '000, 2009-2025
    • Birth and Population Projections: The number of women of childbearing age is expected to drop by 10% between 2020 and 2025
      • Table Number of Women of Childbearing Age by Age Group, 2013, 2017, 2020 & 2025
    • Appendix - Sector Value: The sector expanded by just 2.7% between 2013-2019 due to the decline in the number of births
      • Table Baby Food: Market Value, Current Prices, 2013-2019
    • Appendix - Sector Value: In real terms, sales have fallen by nearly 3% since 2013
      • Table Baby Food: Market Value, Constant Prices, 2013-2019
    • Appendix - Value: The baby food sector was valued at US$925.7 million in 2019 and is dominated by milks
      • Table Baby Food: Market Value, US$ Million, 2013-2019
    • Appendix - Sector Volume: Consumption has been essentially flat since 2008; sales were just 1.1% higher between 2013-2019
      • Table Baby Food: Market Volume, Tons, 2013-2019
    • Appendix - Per Capita Expenditure: A 17.4% increase in per capita expenditure has raised the level to J¥36,828 (US$339.1) per baby aged 0-3 years
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2013-2019
    • Appendix - Per Capita Expenditure: At constant prices, expenditure has increased in all categories, although growth in finger foods has been marginal
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2013-2019
    • Appendix - Per Capita Expenditure: Per capita expenditure per baby aged 0-36 months stood at US$339.1 in 2019
      • Table Baby Food: Per Capita Expenditure, US Dollars, 2013-2019
    • Appendix - Per Capita Consumption: Average consumption per baby aged 0-36 months rose 15.5% in the 2013-2019 period to 18.5kg
      • Table Baby Food: Per Capita Consumption, Grams, 2013-2019
    • Appendix - Baby Milks Category Trends: Sales fluctuated at approximately 22,000 tons over the period 2012-2018 but fell back in 2019
      • Table Baby Milks: Category Trends, 2013-2019
    • Appendix - Baby Milks Segmentation: Infant formula and special dietary milks account for 40.4% of retail sales
      • Table Baby Milks: Category Segmentation, Value and Volume, 2013-2019
    • Appendix - Baby Milks: Morinaga's products mostly fall at the top of the price spectrum, with Meiji's commanding lower prices
      • Table Baby Milks: Brand Price Analysis, June 2020
    • Appendix - Baby Meals Category Trends: Sales have performed better than the milks category, with strong growth since 2015
      • Table Wet Meals: Category Trends, 2013-2019
    • Appendix - Baby Drinks Category Trends: Baby drinks sales have fallen in value terms since 2013, but volumes have actually recorded growth of 3.3%
      • Table Baby Drinks: Category Trends, 2013-2019
    • Appendix - Finger Foods Category Trends: Sales of finger foods fell by 2.4% in the 2013-2019 period, with a volume increase of 7.7%
      • Table Finger Food: Category Trends, 2013-2019
    • Appendix - Imports: Imports of baby milks and cereals has decreased since 2013
      • Table Imports of Baby Milks and Cereals by Type, Value & Volume, 2013-2019
      • Table Baby Milks and Cereals: Imports by Country of Origin, 2017-2019
    • Appendix - Imports: Imports of other baby foods have decreased
      • Table Imports of Other Baby Foods, Volume and Value, 2013-2019
    • Appendix - Imports: Italy is a major supplier of other baby food
      • Table Other Baby Food: Imports by Country of Origin, 2017, 2019
    • Appendix - Exports: By 2019, exports of milks and cereals reached 7,389 tons, worth US$102.4 million
      • Table Exports of Milks and Cereals, 2013-2019
      • Table Exports of Milks and Cereals by Country of Destination, Volume & Value, 2017-2019
    • Appendix - Exports: Exports of sweet meals have grown since 2013
      • Table Other Baby Food: Exports by Type, Volume and Value, 2013-2019
    • Appendix - Exports: Hong Kong is the largest recipient of exports of other baby food
      • Table Other Baby Food: Exports by Country of Origin, 2017 - 2019
    • Appendix - Value Forecasts: The only category expected to show growth between 2019 and 2025 is baby meals
      • Table Baby Food: Market Value Forecasts, Current Prices, 2019-2025
    • Appendix - Value Forecasts: In constant price terms, the baby food sector will remain static
      • Table Baby Food: Market Value Forecasts, Constant Prices, 2019-2025
    • Appendix - Value Forecasts: Overall value sales are expected to increase marginally in the 2019-2025 period
      • Table Baby Food: Market Value Forecasts, US$ Million, 2019-2025
    • Appendix - Volume Forecasts: Volumes are forecast to fall below 50,000 tons in 2020 and by 2025 will be 2% down on the 2019 level
      • Table Baby Food: Market Volume Forecasts, Tons, 2019-2025
    • Appendix - Per Capita Forecasts: Per capita expenditure will rise to J¥43,587 (US$401.2) per baby aged 0-3 years by 2025
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2019-2025
    • Appendix - Per Capita Forecasts: Per capita expenditure per baby aged 0-36 months will increase by 15% in real terms
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2019-2025
    • Appendix - Per Capita Forecasts: All categories are expected to show growth in per capita expenditure to 2025, with the exception of drinks
      • Table Baby Food: Per Capita Expenditure, US$, 2019-2025
    • Appendix - Per Capita Forecasts: Per capital consumption will increase by 6.1% in the 2019 to 2025 period, driven by the meals category
      • Table Baby Food: Per Capita Consumption, Grams, 2019-2025
    • Appendix - Storechecks: The wet meals category, predominantly savory meals, accounted for the largest share of facings in 2019, at 35%
      • Table Baby Food: Facings Allocation by Product Type
    • Summary Methodology

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