The Japanese food market is made up of 59% conventional domestic food sales, 40% green food (specially grown) sales and 1% organic food sales (estimated to be $350 million). The market for certified products is estimated at 110 to 120 billion yen and growing relatively steady.
Potential
Japan`s food availability self-sufficient rate is less than 40% (calorie based), making it necessary to depend on imported products. The self-sufficient rate is expected to decrease even more in the future, as the number of producers and their successors in the domestic agricultural sector decline and national products struggle to compete with cheaper imported counterparts. Demands for imported products, especially among large-scale distributors, such as supermarkets and restaurants, are therefore expected to continue to rise.
One of the major challenges for suppliers, including foreign producers, is to ensure the safety and reliability of imported foods, since Japanese consumers are very uneasy about this matter. Some consumer surveys show that imported foods are among the top issues that Japanese consumers worry about and that their concern about the safety of imported foods, such as residue pesticides exceeds any merits that could come with such products. In order to succeed in the Japanese market, it is definitely essential for suppliers to ensure the safety and reliability of foods throughout the entire process of production and distribution, both prior to export from country of origin and once imported to Japan. Quality, quantity, and delivery punctuality are also key factors for success in international trade. A supplier`s ability to guarantee food quality is especially important.
It is also important to note that when products enter Japan, any that are fumigated will lose their Organic JAS status and label and can only be sold as green products.