Food and Beverage in Japan
Japan is the world’s third largest economy, with population of nearly 125 million.
It has a large, wealthy and sophisticated domestic market. Japan is capable of purchasing the food the market needs and has been for some time the world’s largest net food importer.
In particular, Japan is the world’s largest importer of corn and the third largest importer of soybeans; this was the case even before the natural disaster in 2011. Approximately 61 percent of Japan’s food consumption is accommodated by its food and beverage imports.
Getting your product into market
The Japanese market is challenging with consumers having exacting standards and expectations. In order to facilitate a smooth entry into the market, comprehensive groundwork encompassing industry research, due diligence and market preparation are of critical importance.
Identifying the target market, tailoring an appropriate product offering and identifying the relevant channel in which to service the market is key to a successful entry strategy.
Regulations
All goods imported into Japan are subject to duty and consumption tax unless the goods are duty or tax exempt by law. Ad valorem duty rate is applied to the transaction value of imported goods. Duties are generally between 3 to 15 percent.
A simplified tariff system applies for low-value imports, valued at less than ¥100,000 (NZ$1,637). The system eliminates the extra time necessary to clarify the product and minimises customs brokers’ handling charges. Importers can choose either the normal rate or the simple tariff, which could be higher or lower depending on the product.
Opportunities
Japanese consumers are strongly concerned about food safety issues and in general female shoppers are more health conscious. The overall trend towards natural and organic food creates opportunities for New Zealand food and beverage products.
Products that offer convenience and reduce preparation time will be popular over the next five years. Products packaged in small pouches or shaped in bite-sized form will remain highly attractive to Japanese consumers.
