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Japan Dairy Market Size

The Japan Dairy Market is projected to experience growth over the forecast period, with supermarkets and hypermarkets dominating the retail landscape, significantly influencing consumer purchasing decisions. Convenience stores also play a crucial role, benefiting from extended operating hours that enhance product sales. The market's expansion is further supported by the integration of dairy products in Japanese cuisine and fast-food offerings. Yogurt holds a substantial portion of the market share across retail channels, followed by milk, indicating consumer preferences within the sector.

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Market Size of japan dairy Industry

Japan Dairy Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 31.34 Billion
svg icon Market Size (2029) USD 38.68 Billion
svg icon Largest Share by Distribution Channel Off-Trade
svg icon CAGR (2024 - 2029) 4.30 %
svg icon Fastest Growing by Distribution Channel Off-Trade
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Japan Dairy Market Analysis

The Japan Dairy Market size is estimated at 31.34 billion USD in 2024, and is expected to reach 38.68 billion USD by 2029, growing at a CAGR of 4.30% during the forecast period (2024-2029).

31.34 Billion

Market Size in 2024 (USD)

38.68 Billion

Market Size in 2029 (USD)

2.97 %

CAGR (2017-2023)

4.30 %

CAGR (2024-2029)

Largest Market by Category

35.08 %

value share, Yogurt, 2023

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With the advent of functional products, and the emphasis on low calorie, low sugar, digestive products, the yogurt segment is anticipated to be fastest segment in the forecasted period.

Largest Market by Distribution Channel

93.39 %

value share, Off-Trade, 2023

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The growth of segment in the country is largely driven with the existence of an inviting place for customers to shop, as they are constantly drawn to make large purchases.

Fastest-growing Market by Category

4.57 %

Projected CAGR, Milk, 2024-2029

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Fresh milk has gained traction as the Japanese dairy farming sector grew and families had more disposable income with rising recognition towards milk as health ingredient.

Fastest-growing Market by Distribution Channel

4.38 %

Projected CAGR, Off-Trade, 2024-2029

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The technological advancements making freedom to browse digital catalogs without any hurry in a priceless way is driving off-trade retail channels through Online stores.

Leading Market Player

12.01 %

market share, Meiji Dairies Corporation, 2022

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Meiji Holdings Co Ltd's go through technologies in the market suitable for easier production is increasing product availability and distribution, which is driving the segmental growth.

Strong penetration of organized retail channels is fueling the market growth

  • Dairy products are primarily sold through the off-trade retail channel in Japan. Supermarkets and hypermarkets account for the largest market share among off-trade channels, as they provide the added advantage of influencing the consumer's decision to purchase from a large variety of dairy products available in the market. As a result, this channel is considered the primary sales channel for dairy products, holding more than 62% of overall sales across the country.
  • In Japan, convenience stores stand second in the sales of dairy products, behind supermarkets and hypermarkets. In 2022, the sales value of dairy products through convenience stores increased by 3.5% compared to 2021. Many convenience stores in Japan stay open longer than traditional retail stores, resulting in more time for the company's products to be sold.
  • Dairy products are commonly used in authentic Japanese restaurants and foodservice channels, further boosting the market's growth. Major fast-food chains in Japan add milk, yogurt, and cheese to their menus. Dairy sales through the on-trade channel are anticipated to grow by 9.6% in 2025 compared to 2022. The growth may be aided by consumers preferring dining out or ordering takeout. As of 2021, 23% of consumers said they dined out about two to three times per month.
  • Compared to other dairy products, yogurt accounted for the majority share in all retail channels. In 2022, yogurt accounted for 35% of the total category, and milk was in second place with 24.6% of the value share.
Japan Dairy Market

Japan Dairy Industry Segmentation

Butter, Cheese, Cream, Dairy Desserts, Milk, Yogurt are covered as segments by Category. Off-Trade, On-Trade are covered as segments by Distribution Channel.

  • Dairy products are primarily sold through the off-trade retail channel in Japan. Supermarkets and hypermarkets account for the largest market share among off-trade channels, as they provide the added advantage of influencing the consumer's decision to purchase from a large variety of dairy products available in the market. As a result, this channel is considered the primary sales channel for dairy products, holding more than 62% of overall sales across the country.
  • In Japan, convenience stores stand second in the sales of dairy products, behind supermarkets and hypermarkets. In 2022, the sales value of dairy products through convenience stores increased by 3.5% compared to 2021. Many convenience stores in Japan stay open longer than traditional retail stores, resulting in more time for the company's products to be sold.
  • Dairy products are commonly used in authentic Japanese restaurants and foodservice channels, further boosting the market's growth. Major fast-food chains in Japan add milk, yogurt, and cheese to their menus. Dairy sales through the on-trade channel are anticipated to grow by 9.6% in 2025 compared to 2022. The growth may be aided by consumers preferring dining out or ordering takeout. As of 2021, 23% of consumers said they dined out about two to three times per month.
  • Compared to other dairy products, yogurt accounted for the majority share in all retail channels. In 2022, yogurt accounted for 35% of the total category, and milk was in second place with 24.6% of the value share.
Category
Butter
By Product Type
Cultured Butter
Uncultured Butter
Cheese
By Product Type
Natural Cheese
Processed Cheese
Cream
By Product Type
Double Cream
Single Cream
Whipping Cream
Others
Dairy Desserts
By Product Type
Cheesecakes
Frozen Desserts
Ice Cream
Mousses
Others
Milk
By Product Type
Condensed milk
Flavored Milk
Fresh Milk
Powdered Milk
UHT Milk
Yogurt
By Product Type
Flavored Yogurt
Unflavored Yogurt
Distribution Channel
Off-Trade
Convenience Stores
Online Retail
Specialist Retailers
Supermarkets and Hypermarkets
Others (Warehouse clubs, gas stations, etc.)
On-Trade
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Japan Dairy Market Size Summary

The Japan Dairy Market is experiencing a steady expansion, driven by a robust retail infrastructure and evolving consumer preferences. Supermarkets and hypermarkets dominate the off-trade retail channels, offering a wide array of dairy products that significantly influence consumer purchasing decisions. Convenience stores also play a crucial role, benefiting from extended operating hours that enhance product availability. The on-trade channel, particularly through authentic Japanese restaurants and fast-food chains, is witnessing increased dairy product integration, fueled by a growing trend of dining out and takeout orders. Yogurt leads the market share among dairy products, with fresh milk gaining popularity due to advancements in local dairy farming and increased imports. The demand for cheese is rising, supported by the growing popularity of baked goods, although per capita consumption remains below European levels.

The market landscape is characterized by fragmentation, with major players like Danone SA, Megmilk Snow Brand Co. Ltd, Meiji Dairies Corporation, Morinaga Milk Industry Co. Ltd, and Yakult Honsha Co. Ltd holding significant shares. Innovations such as Meiji's sakura and lychee-flavored drinking yogurt and Yakult's fermented milk drinks highlight the dynamic nature of the market. The ice cream segment remains a favorite, with family-sized multipacks and vanilla flavor leading sales. The market's growth trajectory is supported by a diverse range of dairy products catering to varying consumer tastes and preferences, underscoring the sector's resilience and adaptability in the face of changing market conditions.

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Japan Dairy Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Category

      1. 1.1.1 Butter

        1. 1.1.1.1 By Product Type

          1. 1.1.1.1.1 Cultured Butter

          2. 1.1.1.1.2 Uncultured Butter

      2. 1.1.2 Cheese

        1. 1.1.2.1 By Product Type

          1. 1.1.2.1.1 Natural Cheese

          2. 1.1.2.1.2 Processed Cheese

      3. 1.1.3 Cream

        1. 1.1.3.1 By Product Type

          1. 1.1.3.1.1 Double Cream

          2. 1.1.3.1.2 Single Cream

          3. 1.1.3.1.3 Whipping Cream

          4. 1.1.3.1.4 Others

      4. 1.1.4 Dairy Desserts

        1. 1.1.4.1 By Product Type

          1. 1.1.4.1.1 Cheesecakes

          2. 1.1.4.1.2 Frozen Desserts

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Mousses

          5. 1.1.4.1.5 Others

      5. 1.1.5 Milk

        1. 1.1.5.1 By Product Type

          1. 1.1.5.1.1 Condensed milk

          2. 1.1.5.1.2 Flavored Milk

          3. 1.1.5.1.3 Fresh Milk

          4. 1.1.5.1.4 Powdered Milk

          5. 1.1.5.1.5 UHT Milk

      6. 1.1.6 Yogurt

        1. 1.1.6.1 By Product Type

          1. 1.1.6.1.1 Flavored Yogurt

          2. 1.1.6.1.2 Unflavored Yogurt

    2. 1.2 Distribution Channel

      1. 1.2.1 Off-Trade

        1. 1.2.1.1 Convenience Stores

        2. 1.2.1.2 Online Retail

        3. 1.2.1.3 Specialist Retailers

        4. 1.2.1.4 Supermarkets and Hypermarkets

        5. 1.2.1.5 Others (Warehouse clubs, gas stations, etc.)

      2. 1.2.2 On-Trade

Japan Dairy Market Size FAQs

The Japan Dairy Market size is expected to reach USD 31.34 billion in 2024 and grow at a CAGR of 4.30% to reach USD 38.68 billion by 2029.

In 2024, the Japan Dairy Market size is expected to reach USD 31.34 billion.

Japan Dairy Market Report Snapshots

Japan Dairy Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029