Japan Food Service Market Size, Share & Industry Analysis, By Type (Full Service Restaurants, Quick Service Restaurants, Institutes, and Others), 2023-2030

The Japan food service market size was valued at USD 214.35 billion in 2022 and is projected to grow from USD 236.29 billion in 2023 to USD 475.46 billion by 2030, exhibiting a CAGR of 10.50% during the forecast period.

Food service is all about food and beverage consumed outside the home or ordered at home through food-serving establishments. Consumers visit restaurants for many reasons, including cross-cultural dietary patterns due to the convenience of trying out new tastes and flavors. The market is among Japan's biggest industries, and the strong presence of food service is reported in cities such as Tokyo and Osaka, where the number of restaurants is continuously increasing. The young population and the elderly drive Japan's industry's growth.

Japan's food industry is highly competitive as both local and foreign travelers in the country expect innovative and high-quality food items. Dining out is an important part of Japanese culture. Consumers prefer to conduct both social and business meetings in restaurants due to the time-pressed schedules and increasing frequency of dining. The government has also undertaken favorable policies to boost the growth of the industry. For instance, in 2018, The National Diet passed the Act for Development of Specified Complex Tourist Facilities Areas, which helped legalize gambling in specific locations in Japan. The inflow of foreign nationals in such travel designations is further expected to boost the sector's growth.

LATEST TRENDS

Increased Automation in the Food Sector Drives Food Service Industry's Growth in Japan

To attract customers, food service operators in Japan are adopting new innovative ideas, such as the influence of cross-cultural cuisine and robotics themes in their restaurants. Incorporating technology in the food and beverage industry plays a vital role in this industry. The companies continuously improve productivity and identify substantial areas for research and development. For instance, in June 2022, Pronto Corporation collaborated with TechMagic to create a new food infrastructure by utilizing cutting-edge technologies such as machine learning and artificial intelligence. An automated pasta robot prepares a meal in 45 seconds in Japan. Hence the trend of using new innovative technologies in operations is expected to bolster the market size.

DRIVING FACTORS

Increasing Consumer Awareness of QSRs Boosts Japan Food Service Market Growth

In Japan, Quick service restaurants are rising rapidly. QSR specialize in one or two main entrees such as hamburgers, pizza or chicken, but they usually also provide drinks, salads, ice cream, dessert, etc. QSRs are designed in such a way that customers can rapidly and affordably purchase food and beverages. The industry players are increasingly incorporating international cuisines into their menus and promoting their products on their social media platforms to spread awareness about their QSR. Hence these factors have a growing influence of cross expand this industry size in Japan.

RESTRAINING FACTORS

Government Policies In Food And Beverage Categories May Hamper The Market Growth 

Japan's government has certain laws and regulations regarding food and beverage products for consumer welfare. To open a restaurant in Japan, the owner requires a license, which is allowed for one person in one place. According to Japanese law, proper labeling and packaging of Korean products are required, well Food Additive Approval Process is also required, and importing and exporting products also has various complex laws. Therefore, complex rules and regulations may hamper the growth of the food service sector.

KEY INDUSTRY PLAYERS

Launching New Food Products Helping Market Players to Increase the Market Growth

In terms of the competitive landscape, the market depicts the presence of established and emerging companies. The key players’ apex position is attributable due to the strong performance and high-quality customer service, strong marketing campaigns, and promotional events. The company has maintained its competitive advantage by regularly launching new food items in the market. They have also established a brand image among its customers leading to its popularity among consumers.

Food service operators provide ethnic and Western cuisines through various restaurants. Some of the French restaurants include Sushi Sho, Shiseido Parlour, Ponchi Ken, Seirinkan, Les Chanterelles, Ise Sueyoshi, Tenoshimam, Nanzenji Hyotei, and Natives Restaurant Patio. Similarly, Mexican restaurants include Sushi Sho, Shiseido Parlour, Ponchi Ken, Seirinkan, Les Chanterelles, Ise Sueyoshi, Tenoshimam, Nanzenji Hyotei, and Natives Restaurant Patio.

In addition, some foodservice providers offer Japanese Korean ethnic and Korean ethnic, and Western cuisine. Moreover, the Japanese market includes Starbucks, KFC Corporation, and Yoshinoya Holdings. Tully's Coffee Japan Co. Ltd and Yum! Brands, Inc., and Starbucks have maintained its competitive advantage by regularly engaging in innovations and using branding to increase its strength in the Japan food service market share. For instance, in April 2021, Starbucks Japan launched a new seasonal drink, the Chai Chocolate Frappuccino. A drink with a chocolate base and gentle spices added. The drink is now available on mobile and distribution platforms in Japan.

LIST OF KEY COMPANIES PROFILED:

• McDonald's (U.S.)


• Starbucks (U.S.)


• Plenus Co., Ltd (Japan)


• Zensho Holdings Co.(Japan)


• Tori doll Holdings Corp.(Japan)


• Dominos (U.S.)


• KFC Corporation (U.S.)


• Yum! Brands, Inc (U.S.)


• Skylark Co., Ltd. (Japan)


• Tully's Coffee Japan Co. Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS: 

• August 2022 – Starbucks has launched a new fall drink called the Marrone "Cassis Frappuccino". The blended beverage combines earthy chestnuts and cassis with Starbucks signature coffees from all over Japan.


• March 2022 – Domino Japan opens its 900th store. It is the first Domino's Pizza Enterprises Ltd location to reach this milestone, just nine months after the company opened its 800th location.


• April 2021 – Yum! Brands, Inc. announced its plans to acquire an Israeli Omni channel ordering and marketing platform named Tictuk Technologies. The company specializes in a technology solution that helps consumers order food and simultaneously interact with food brands through social media platforms such as WhatsApp, Facebook Messenger, and Telegram.

REPORT COVERAGE

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The market report provides a detailed analysis of the market. It focuses on key aspects such as an overview of Japan's food service industry, market sizing, and pricing analysis. It also includes an overview of the increasing tourism in Japan and new product launches, key industry developments such as mergers and acquisitions and the impact of COVID-19 on the market. Besides this, the report offers insights into the market trends and highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the Japanese foodservice market over recent years.

Report Scope & Segmentation