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Adonee Marpna
International Marketing
Bodell
September 14, 2019
Market Research
The Japanese Food service market has grown from $35 billion to $45 billion since 2008.
The industry is forecasted to have a compounded annually growth rate of 6.3% from a period of
2019 to 2024 (Mordor Intelligence, 2019). There are several factors to the growth of the market
in the past ten years. From 2012 to 2013 the Japanese market as a whole was still recovering
from the 2011 earthquake (Perkins, 2017). By 2014 the economy started to grow again, exports
recovered, and consumption tax began to increase. From 2014 to 2015 the number of foreign
visitors coming into Japan also increased by 47% from 13.4 million to 19.7 million (Perkins,
2017).
The Japanese food service industry can be broken down into six major segments:
restaurants, Hotels, Institutional, Drinking Establishments, Transportation, and Prepared meals.
The fast food market falls within the restaurant segment which is the largest segment capturing
42.8% of the foodservice market as of 2017. The second largest segment of the industry is the
prepared meal industry which has 21.6% of the market and is continuing to grow. These are
foods that are made ready to eat, for example lunch boxes for office staff and employees, or
lunch boxes sold in convenience stores, supermarkets, and department stores (Perkins, 2017).
The third largest segment is the drinking establishments segment which has 15.6% of the market.
These include café’s, coffee shops, and stores that sell beverages. Then there is the institutional
food service segment which has 10.5% of the market. These include food providers to schools
and factories, like companies that focus on providing foods for cafeterias. The hotel segment has
about 8.7% of the market and are mainly full-service restaurants located in hotels. The smallest
segment is the transportation segment which is food service provided on Japanese long distance
fast-trains, buses, and domestic airlines. These are competitors within the whole foodservice
industry.
The largest market in the food service industry are the full-service restaurants. These are
mostly run by independent outlets or are family owned. This is the fast food industries largest
competitor in Japan. The average Japanese consumer have high demands when it comes to
product quality and innovation (Foodservice Profile, 2014). So, most Japanese perceive these
full-service restaurants to have the best quality food because the prices are generally higher, and
the service is more formal. However, the aging population of Japan is affecting this sector,
owners of these independent outlets and family run restaurants are aging and entering retirement
age. This is beginning to increase the number of full-service restaurants closing. Which is a huge
opportunity for the fast food industry and Chick-Fil-A to capitalize on.
The Japanese Café and Bar market is the second largest. Just like the full-service
restaurant the Café and Bar market is also on the decline. This market is moving away from
independently owned outlets to chained stores like Starbucks. However, the increasing size of
the consumers entering retirement age is driving up demand for coffee shops to be opened in
residential areas which will provide consumers with a place to socialize (Foodservice Profile,
2014).
The fast food market is the third largest within the food service industry. This market is
highly competitive and is heavily reliant on franchised fast food chain restaurants (Foodservice
