More good news from Japan. A timely Global Agricultural Information Network (GAIN) report released by the USDA Foreign Agriculture Service earlier this month indicates an uptick in the Japanese Home Meal Replacement market, with prepared daily dishes and their various ingredients in line for sales gains.
According to the release posted at https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Home%20Meal%20Replacement%20Market%20Heating%20Up%20in%20Japan_Tokyo%20ATO_Japan_10-29-2019 and prepared by Barrett Bumpas, “Among Japanese food industry sectors, the Home Meal Replacement (HMR) sector, or Sozai in Japanese, has shown the highest rate of growth in recent years, with sales reaching a record ¥10.25 trillion ($95 billion) in 2018.”
While the United States “is Japan’s number one agricultural trading partner and known as a reliable exporter providing safe and high-quality foods,” the release said, it “other suppliers have implemented free trade agreements with Japan that reduce or eliminate food and agricultural tariffs, including the European Union, Canada, Australia, Chile, and Mexico.” However, in September of this year, the U.S. and Japan announced an agreement that upon implementation “will enable American producers to compete more effectively with countries that currently have preferential tariffs.”
For a variety of domestic crops and products, growth of the HMR industry is significant, and the release noted that increased demand for “fast, convenient meals has contributed to the market growth” Moreover, it said, “Consumers demand for high-quality food and a unique eating experience coupled with intense competition make the Sozai market dynamic. U.S. ingredient suppliers are well positioned to compete in many product categories, provided they are willing to adjust to market demands.”
The Japanese HMR industry “includes ready-to-eat meals, cooked/prepared food and/or delicatessen take-out meals.” Citing a study by the Japan Sozai Association, the USDA release said top selling menu items are hand formed rice balls wrapped in seaweed, bento boxes (assorted take-out meals), sandwiches, croquettes (breaded and deep fried), sushi (including maki (sushi roll), nigiri (hand-formed) and inari zushi (thin deep-fried tofu filled with sushi rice).”
“The total HMR market was valued at ¥10.3 trillion ($95 billion) in 2018, up 2 percent from 2017 and 27.3 percent over the last decade,” the release said. “Total sales of HMR made up one-quarter of all retail food
sales. The HMR industry targets consumers of all ages who want to enjoy convenient meals at home, school, or the work place, capitalizing on increases in dual-income households and diversifying palates. Among the Japanese food industry sectors, Sozai sales have shown the strongest growth. According to Nikkei MJ newspaper, Japanese food buyers selected Sozai as the sector that would experience the best growth in 2019 and 2020 (based on survey replies from 63 major supermarket buyers).”
In addition, the release noted, “Recent trends in the industry include ‘healthy’ and ‘fancy’ foods containing unique vegetables and proteins, for example, Japanese consumers now accept the use of tree nuts and dry fruits in HMR menus; supporting higher menu prices. U.S. suppliers have the potential to export value-added agricultural products to Japanese buyers who are looking for fresh and high-quality foodstuffs.”
Marketing efforts are also being ramped up. “To link American foods to high-quality HMR menus, ATO Tokyo held a New Products Trade Showcase in Tokyo in 2019 and created an HMR recipe guidebook through collaboration with U.S. Agricultural Cooperators and a team of hotel chefs. The HMR guidebook was an effective ‘hook’ to attract high quality food buyers from across the HRI and retail sectors.”
