Hot Drinks in Japan
Euromonitor International's Hot Drinks in Japan market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 73 | Publication date: May 2006
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Executive summary
Diversification in all dimensions
Diversification has been found in all hot drinks sectors. A remarkable differentiation could be found in taste innovation. New tastes can be made in different ways. Manufacturers are using more added values in their products to create mellow tastes and healthy effects. In the review period, healthy ingredients like black bean, oligosaccharide sugar and ginger could be seen as the most popular extra ingredients to be used in hot drinks. The combination of several tea varieties also brings new tastes to customers. Diversification can be found in packaging as well. Most green tea products used to be sold only in paper or plastic packs, but a few manufacturers have moved to offer tea in glass bottles. A new packaging method may help to revive sales of old products. Morinaga has made the package for its famous Milk Cocoa easier to use. Instant tea and coffee that come with paper cups are doing well. AGF and UCC are the manufacturers that offer most of these products. Manufacturers diversify by offering a product that they have not previously produced. Coffee manufacturers may offer more tea, and traditional tea manufacturers may start coffee production. AGF, for example, has introduced a new type of tea besides its main portfolio of coffee products.
Paying more for coffee
Among hot drinks products, coffee was influenced more by the natural environment in 2005. The bad weather conditions in Africa, hurricanes in America and periodical decline of farms in Brazil combined to limit the supply of coffee. Japan imports most of its coffee raw material. This means that prices of coffee are likely to be affected. Manufacturers have started to increase the unit price of blue mountain coffee in 2005. Nevertheless, Japanese customers are willing to pay more for coffee as long as it suits their needs. In 2005, instant coffee volumes grew faster than other coffee types. Manufacturers are still developing new coffee products to satisfy domestic needs.
Cocoa with bright future
With the boom for polyphenol, cocoa continues to see positive growth for both volume and value sales in 2005. Chocolate-based flavoured powder drinks account for 91% of total other hot drinks value sales in 2005. Manufacturers keep on developing new cocoa products in different ways. Morinaga is still in a dominant position in cocoa in Japan. Among the key players, Morinaga leads in cocoa, with House Foods in second place. The active movements among key players are a good reason for cocoa to keep on growing. In addition, there seem to be no threats from other products, such as other plant-based powder drinks. Malt-based drinks is not yet large enough to be a threat to cocoa.
Sell the convenience
In Japan, convenience can be considered as key to competitiveness. An example is the increase in both volume and value terms of hot drinks that come in paper cups. This helps customers to enjoy their favourite drinks in their car or on a camping trip. The amounts of hot drinks also vary in different pack sizes, which tends to suit different needs in terms of volume. Especially for new products, small pack size is effective in that it can attract people who want to try a new taste. Another example of convenience is the number of vending machines that sell hot drinks. Last but not least, manufacturers are very flexible in directly receiving orders for their products. Customers can therefore buy many hot drinks through mail order, e-mail, or even by fax.
Health awareness
Health is of concern to most Japanese customers when they choose a food or beverage. The number of healthy products was increasing during the review period. Black bean is the most popular ingredient added to hot drinks since the middle of the review period, especially among cocoa drinks, while the trend is also spreading to coffee products. Various kinds of vitamins are also used in hot drinks product development. Fruit and herbal ingredients, such as lemon or ginger, often make products healthier. Scientific discoveries and conclusions about some kinds of ingredients might increase health awareness of such products among customers. Most large manufacturers have applied for certifications from MHLW (Ministry of Health, Labour and Welfare) for organic or FOSHU (Food for Specified Health Use) standards. In addition, some Japanese companies are embracing the Rainforest Alliance certification due to heightened consumer concern about the environment, especially global warming and deforestation. This certification is approved by Rainforest Alliance from America. A consumer survey conducted by the Japanese Ministry of the Environment in 2003 revealed that 67% of the Japanese population is very concerned with environmental issues and almost 42% of consumers seek to purchase environmentally-friendly products all or most of the time.
Table of contents
HOT DRINKS IN JAPAN : MARKET INSIGHT
EXECUTIVE SUMMARY
HOT DRINKS SALES
Market Performance
Table 1 Retail Sales of Hot Drinks by Sector: Volume 2000-2005
Table 2 Retail Sales of Hot Drinks by Sector: Value 2000-2005
Table 3 Retail Sales of Hot Drinks by Sector: % Volume Growth 2000-2005
Table 4 Retail Sales of Hot Drinks by Sector: % Value Growth 2000-2005
Key Trends and Developments
Competitive Environment
Table 5 Hot Drinks Company Shares by Retail Value 2001-2005
Table 6 Hot Drinks Brand Shares by Retail Value 2002-2005
Retail Distribution
Table 7 Retail Sales of Hot Drinks by Distribution Format: % Analysis 2000/2005
Table 8 Retail Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2005
Retailer Activity and Private Label Trends
Table 9 Penetration of Private Label by Sector 2001-2005
Forecast Market Performance
Table 10 Forecast Retail Sales of Hot Drinks by Sector: Volume 2005-2010
Table 11 Forecast Retail Sales of Hot Drinks by Sector: Value 2005-2010
Table 12 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2005-2010
Table 13 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2005-2010
PUBLISHED INDUSTRY STATISTICS
Table 14 Imports of Materials by Sector 2000-2004
Table 15 Green Coffee Beans Imports 1998-2004
Table 16 Regular Coffee Imports 1998-2004
Table 17 Instant Coffee Imports 1998-2004
Table 18 Black Tea (ready-to-brew) Imports 1998-2004
Table 19 Instant Tea Imports 1998-2004
DEFINITIONS
LOCAL COMPANY PROFILES - JAPAN
AJINOMOTO GENERAL FOODS INC (AGF) - HOT DRINKS - JAPAN
COMPANY BACKGROUND
Summary 1 Summary - Ajinomoto General Foods Inc Operational Indicators 2005
PRODUCTION CAPACITY
Summary 2 Summary - Ajinomoto General Foods : Production Statistics 2003
COMPETITIVE POSITIONING
Table 20 Ajinomoto General Foods Inc: Shares of Hot Drinks by Subsector by Retail Value 2001-2005
ITO EN LTD - HOT DRINKS - JAPAN
COMPANY BACKGROUND
Summary 3 Summary - Ito En Co Ltd Operational Indicators 2005
PRODUCTION CAPACITY
Summary 4 Summary - Ito En Co Ltd : Production Statistics 2003
COMPETITIVE POSITIONING
Table 21 Ito En Co Ltd: Shares of Hot Drinks by Subsector by Retail Value 2001-2005
KATAOKA & CO LTD - HOT DRINKS - JAPAN
COMPANY REVIEW
KEY COFFEE INC - HOT DRINKS - JAPAN
COMPANY BACKGROUND
Summary 5 Summary - Key Coffee Inc Operational Indicators 2005
PRODUCTION CAPACITY
Summary 6 Summary - Key Coffee Inc: Production Statistics 2003
COMPETITIVE POSITIONING
Table 22 Key Coffee Inc: Shares of Hot Drinks by Subsector by Retail Value 2001-2005
MORINAGA & CO LTD - HOT DRINKS - JAPAN
COMPANY BACKGROUND
Summary 7 Summary - Morinaga Co Ltd Operational Indicators 2005
PRODUCTION CAPACITY
Summary 8 Summary - Morinaga & Co Ltd: Production Statistics 2003
COMPETITIVE POSITIONING
Table 23 Morinaga & Co Ltd Shares of Hot Drinks by Subsector by Retail Value 2001-2005
NESTLé JAPAN LTD - HOT DRINKS - JAPAN
COMPANY BACKGROUND
Summary 9 Summary - Nestlé Japan Ltd Operational Indicators 2002
PRODUCTION CAPACITY
COMPETITIVE POSITIONING
Table 24 Nestlé Japan Ltd: Shares of Hot Drinks by Subsector by Retail Value 2001-2005
UCC UESHIMA COFFEE CO LTD - HOT DRINKS - JAPAN
COMPANY BACKGROUND
Summary 10 Summary - UCC Ueshima Coffee Co Ltd Operational Indicators 2005
PRODUCTION CAPACITY
COMPETITIVE POSITIONING
Table 25 UCC Ueshima Coffee Co Ltd: Shares of Hot Drinks by Subsector by Retail Value 2001-2005
COFFEE IN JAPAN
FILTER COFFEE MACHINES
Table 26 Filter Coffee Machine Penetration by Household 2002-2003
SECTOR PERFORMANCE
Fresh coffee price up
Instant coffee remains strong
Products accompanying coffee
The culture of gift
Forecast performance
Table 27 Retail Sales of Coffee by Type: Volume 2000-2005
Table 28 Retail Sales of Coffee by Type: Value 2000-2005
Table 29 Retail Sales of Coffee by Type: % Volume Growth 2000-2005
Table 30 Retail Sales of Coffee by Type: % Value Growth 2000-2005
Table 31 Coffee Company Shares 2001-2005
Table 32 Coffee Brand Shares 2002-2005
Table 33 Forecast Retail Sales of Coffee by Type: Volume 2005-2010
Table 34 Forecast Retail Sales of Coffee by Type: Value 2005-2010
Table 35 Forecast Retail Sales of Coffee by Type: % Volume Growth 2005-2010
Table 36 Forecast Retail Sales of Coffee by Type: % Value Growth 2005-2010
NEW PRODUCT DEVELOPMENTS
Welcome the added value
New product – different options
Product origins
Summary 11 Summary - Coffee: New Product Launches 2004-2005
COFFEE PODS PERFORMANCE
Table 37 Standard Vs Coffee Pods 2004/2005
INSTANT COFFEE BY SPECIALITY TYPE
Table 38 Instant Coffee (total) Off-trade Volume Shares 2004/2005
Table 39 Instant Coffee (total) Off-trade Value Shares 2004/2005
FOODSERVICE DISTRIBUTION
Chain shops increase market share
Independent shops struggling for survival
Table 40 Foodservice Sales of Coffee by Distribution Format 2000/2005
TEA IN JAPAN
SECTOR PERFORMANCE
Best and worst for black tea bags
Less green tea but more expensive
Fruit/herbal ingredients in tea
Instant tea and other tea
Hot or cold
Packaging differentiation
Forecast performance
Table 41 Retail Sales of Tea by Subsector: Volume 2000-2005
Table 42 Retail Sales of Tea by Subsector: Value 2000-2005
Table 43 Retail Sales of Tea by Subsector: % Volume Growth 2000-2005
Table 44 Retail Sales of Tea by Subsector: % Value Growth 2000-2005
Table 45 Tea Company Shares 2001-2005
Table 46 Tea Brand Shares 2002-2005
Table 47 Forecast Retail Sales of Tea by Subsector: Volume 2005-2010
Table 48 Forecast Retail Sales of Tea by Subsector: Value 2005-2010
Table 49 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2005-2010
Table 50 Forecast Retail Sales of Tea by Subsector: % Value Growth 2005-2010
NEW PRODUCT DEVELOPMENTS
Herbal and natural ingredients
New tastes from combinations
New forms for Japanese tea
Summary 12 Summary - Tea: New Product Launches 2004-2005
OTHER HOT DRINKS IN JAPAN
SECTOR PERFORMANCE
Ingredients used as competitive tool
Morinaga leads cocoa market
Niche for other plant-based hot drinks
Forecast performance
Table 51 Retail Sales of Other Hot Drinks by Subsector: Volume 2000-2005
Table 52 Retail Sales of Other Hot Drinks by Subsector: Value 2000-2005
Table 53 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2000-2005
Table 54 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2000-2005
Table 55 Other Hot Drinks Company Shares 2001-2005
Table 56 Other Hot Drinks Brand Shares 2002-2005
Table 57 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2005-2010
Table 58 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2005-2010
Table 59 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2005-2010
Table 60 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2005-2010
NEW PRODUCT DEVELOPMENTS
New packaging
Emphasis on good health
Where small is large
Summary 13 Summary - Other Hot Drinks: New Product Launches 2004-2005