Japan Dairy Market Insights, Industry Trend, Forecasts to 2032

The Japan Dairy Market is expected to grow at a significant CAGR during the forecast period. Population growth, the expansion of the food and beverage industry, rising health consciousness, rising demand from emerging markets, value addition, etc. are some of the major factors influencing the Japan dairy market.

Market Overview

The dairy market in Japan is a significant part of the country's food industry, providing a range of products such as milk, cheese, butter, yogurt, and ice cream. Dairy consumption has been a part of Japanese culture since ancient times, and today, it remains an essential part of the Japanese diet. The dairy market in Japan is highly regulated, with the government setting strict standards for product quality and safety. These regulations have helped to build consumer trust in the industry, and Japan has a reputation for producing high-quality dairy products.

Milk is the most consumed dairy product in Japan, followed by yogurt and cheese. While domestic production of milk and yogurt is relatively high, Japan relies heavily on imports for cheese, butter, and other dairy products. The Japanese dairy market has experienced significant changes in recent years, with a shift towards healthier and more functional dairy products. Low-fat milk and yogurt have become increasingly popular, as have probiotic and lactose-free dairy products.

One of the challenges facing the dairy market in Japan is an aging population, which has led to a decline in milk consumption. However, the market is expected to grow in the coming years, driven by demand for healthier and more functional dairy products, as well as increasing interest in Western-style cuisine.

Report Coverage

This research report categorizes the market for the Japan dairy market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japanese dairy market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japanese dairy market.

Driving Factors

Japanese consumers are increasingly interested in healthy and nutritious food options, and dairy products are seen as an important part of a balanced diet. This has led to a shift towards low-fat and lactose-free dairy products, as well as products that contain probiotics and other functional ingredients. The Japanese government places strict regulations on the dairy industry to ensure the safety and quality of dairy products. These regulations have helped to build consumer trust in the industry and have encouraged the development of high-quality, innovative dairy products. The dairy industry in Japan has benefited from technological advancements in areas such as processing, packaging, and preservation. These advancements have enabled the development of new and innovative dairy products, such as long-lasting milk and yogurt drinks, which have helped to drive growth in the market.

Restraining Factors

The decline in domestic milk production is due to several factors, including an aging population of dairy farmers, a shortage of labor, and high production costs. Many dairy farmers in Japan are facing difficulties in attracting new workers, particularly younger individuals, due to the demanding nature of the work and the lack of profitability of small-scale dairy farms. This has led to a decline in the number of dairy farms and a decrease in milk production. Another restraint on the growth of the dairy market in Japan is increasing competition from alternative sources of protein, such as soy, tofu, and meat substitutes. As consumers become more health-conscious and environmentally aware, they are turning to these alternative sources of protein, which are perceived as healthier and more sustainable than traditional animal-based products. These are the main factors that will restrain the Japan dairy market over the anticipated period.

Market Segment 

The Japan Dairy Market share is segmented into product type and distribution channel.

• The fluid milk segment is expected to hold the largest share of the Japan dairy market over the predicted period

Based on the product type, the Japan dairy market is segmented into fluid milk, flavoured milk, drinkable yogurt, cheese, ice-cream, UHT milk, milk powder, and others. Among these, the fluid milk segment is expected to hold the largest share of the Japan dairy market over the predicted period. The demand for fluid milk is driven by the growing awareness of the health benefits of dairy products, as well as the popularity of milk as a beverage. Fluid milk is one of the largest segments in the Japan dairy market, accounting for a significant share of the overall market. The popularity of milk in Japan is driven in part by the country's aging population, which is seeking out products that can support bone health and overall well-being.

• The hypermarkets/supermarkets are expected to hold the largest share of the Japan dairy market over the study period.

Based on the distribution channel, the Japan dairy market is classified into specialty retailers, hypermarkets/supermarkets, convenient stores, online channels, and others. Among these, the hypermarkets/supermarkets are expected to hold the largest share of the Japan dairy market over the study period. The segmental expansion can be attributed to the wide variety of dairy products it offers, including fluid milk, cheese, yogurt, and ice cream, as well as frequent competitive pricing and marketing campaigns. These products are typically displayed in dedicated sections of the store and are often sold at competitive prices to attract price-conscious consumers.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan dairy market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Meiji Co., Ltd.
• Megmilk Snow Brand Co., Ltd.
• Morinaga Milk Industry Co., Ltd.
• Yakult Honsha Co., Ltd.
• Glico Dairy Products Co., Ltd.
• Yotsuba Milk Products Co., Ltd.
• Japan Dairy Industry Association
• Japan Fresh Milk Industry Association
• Japan Dairy Products Association
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• On July 2022, Meiji has only made GABA-containing FFC available for home delivery.

Market Segment

This study forecasts revenue at, regional, and country levels from 2019 to 2030. Spherical Insights has segmented the Japan Dairy Market based on the below-mentioned segments:

Japan Dairy Market, By Product Type

• Fluid Milk
• Flavoured Milk
• Drinkable Yogurt
• Cheese
• Ice-Cream
• UHT Milk
• Milk Powder
• Others

Japan Dairy Market, By Distribution Channel

• Specialty Retailers
• Hypermarkets/Supermarkets
• Convenient Stores
• Online Channels
• Others