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: 87 | Publication date: Jul 2009
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
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Health and wellness set to determine sales of hot drinks in Japan
Convenience and health and wellness are the major trends in hot drinks in Japan. Whereas coffee is mainly affected by the convenience trend, led by specialist coffee shops, tea is more closely linked to health and wellness. There is rising demand for fruit/herbal tea as consumers are searching for products which are more beneficial to health than black standard tea. Green tea continues to remain a traditional favourite among health-conscious consumers due to its antioxidant properties and is significant in the Japanese tea sector, helping to drive tea’s growth. The coffee sector is being influenced by the health and wellness trend, although to a lesser degree, as a growing number of consumers have expressed concern about caffeine intake levels. Even though decaffeinated coffee is healthier, it occupies a small niche within coffee.
Slow and steady value growth expected
Value sales of hot drinks are forecast to grow steadily over 2008-2013 as consumers face higher prices due to the higher material and production costs incurred by manufacturers for imported materials, which have influenced the prices of finished goods. Key players are focusing on producing more premium and value-added products to absorb the higher costs incurred from raw materials through higher margins.
Consumers seek premium-quality tea
Premium tea sales are on the rise as consumers are demanding higher-quality tea products. The core brands which lead the market within green tea, black standard tea, and other tea categories, green tea makes up the majority of premium products found in mainstream retail environments. Key players such as Ito En and Mitsui Norin lead the fragmented tea sector with significant shares.
Prospects for coffee pods, but filters remain king
Coffee pods were actively promoted in Japan during 2008 due to the growing interest in coffee pod machines in the country. As a result, volume sales of coffee pods have increased due to price promotions on coffee pod machines. Filtered coffee in 2008 still accounted for the majority of volume sales compared to coffee pods. However, cassette coffee achieved the strongest volume growth.
Other hot drinks in decline amid a shrinking consumer group
Leading the way in other hot drinks was Morinaga & Co Ltd. Morinaga is a well-known manufacturer of high-quality confectionery, popular among Japanese consumers. Morinaga has seen costs for chocolate, dairy and sugar skyrocket due to a combination of rising cocoa prices, currency fluctuations and government-imposed import taxes. Key factors suggest that Japan’s ageing population, and reduced number of children, who form the key target group, is a factor behind the sector’s decline.
Table of contents
HOT DRINKS IN JAPAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Health and wellness set to determine sales of hot drinks in Japan
Slow and steady value growth expected
Consumers seek premium-quality tea
Prospects for coffee pods, but filters remain king
Other hot drinks in decline amid a shrinking consumer group
KEY TRENDS AND DEVELOPMENTS
Single-person households demand convenience
Vending fails to appeal
Low-price supermarkets/hypermarkets gaining visibility
Consumers continue to prioritise health and wellness
Japan, a coffee and tea culture
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Hot Drinks Company Shares by Value 2004-2008
Table 12 Hot Drinks Brand Shares by Value 2005-2008
Table 13 Penetration of Private Label by Sector 2004-2008
Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 15 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 23 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 24 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 25 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
APPENDIX
Production/Import/Export Data
Table 26 Imports of Coffee 2002-2007
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - JAPAN
AJINOMOTO GENERAL FOODS INC (AGF) - HOT DRINKS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Ajinomoto General Foods Inc (AGF): Key Facts
Summary 3 Ajinomoto General Foods Inc (AGF): Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Ajinomoto General Foods Inc (AGF): Competitive Position 2008
ITO EN LTD - HOT DRINKS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Ito En Ltd: Key Facts
Summary 6 Ito En Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Ito En Ltd: Competitive Position 2008
KATAOKA BUSSAN CO LTD - HOT DRINKS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Kataoka Bussan Co Ltd: Key Facts
Summary 9 Kataoka Bussan Co Ltd: Operational Indicators 2006-2008
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Kataoka Bussan Co Ltd: Competitive Position 2008
KEY COFFEE INC - HOT DRINKS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Key Coffee Inc: Key Facts
Summary 12 Key Coffee Inc: Operational Indicators 2007-2008
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Key Coffee Inc: Competitive Position 2008
MITSUI NORIN CO LTD - HOT DRINKS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Mitsui Norin Co Ltd: Key Facts
Summary 15 Mitsui Norin Co Ltd: Operational Indicators 2007-2008
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Mitsui Norin Co Ltd: Competitive Position 2008
MORINAGA & CO LTD - HOT DRINKS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 17 Morinaga & Co Ltd: Key Facts
Summary 18 Morinaga & Co Ltd: Operational Indicators 2007-2008
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 19 Morinaga & Co Ltd: Competitive Position 2008
NESTLé JAPAN LTD - HOT DRINKS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 20 Nestlé Japan Ltd: Key Facts
Summary 21 Nestlé Japan Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 22 Nestlé Japan Ltd: Competitive Position 2008
UCC UESHIMA COFFEE CO LTD - HOT DRINKS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 23 UCC Ueshima Coffee Co Ltd: Key Facts
Summary 24 UCC Ueshima Coffee Co Ltd: Operational Indicators 2006-2008
COMPANY BACKGROUND
PRODUCTION
Summary 25 UCC Ueshima Coffee Co Ltd: Japanese Production Facilities 2008
COMPETITIVE POSITIONING
Summary 26 UCC Coffee Ueshima Co Ltd: Competitive Position 2008
COFFEE IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 27 Coffee Machine Sales: 2002-2007
Table 28 Instant Coffee by Speciality Type 2004-2008
Table 29 Retail Sales of Coffee by Type: Volume 2003-2008
Table 30 Retail Sales of Coffee by Type: Value 2003-2008
Table 31 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 32 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 33 Standard Vs Coffee Pods 2004-2008
Table 34 Coffee Company Shares 2004-2008
Table 35 Coffee Brand Shares 2005-2008
Table 36 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 37 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 38 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 39 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 40 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
Table 41 Other Tea by Type: % Off-trade Volume 2005-2008
Table 42 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 43 Retail Sales of Tea by Subsector: Value 2003-2008
Table 44 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 45 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 46 Tea Company Shares 2004-2008
Table 47 Tea Brand Shares 2005-2008
Table 48 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 49 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 50 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 51 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 52 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 53 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 54 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 55 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 56 Other Hot Drinks Company Shares 2004-2008
Table 57 Other Hot Drinks Brand Shares 2005-2008
Table 58 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 59 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 60 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 61 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013