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Japan Foodservice Market Size

The Japan foodservice market is characterized by its extensive variety of dining options, encompassing both traditional and international cuisines. The market's scale is influenced by the country's high standards for food safety and quality, which are rigorously enforced through government inspections. Quick service restaurants (QSRs) dominate the market share, driven by the fast-paced lifestyle of consumers seeking convenient meal options. The growing interest in cloud kitchens has also contributed to the market's expansion, attracting substantial investments from both local and international entities.

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Market Size of japan foodservice Industry

Japan Foodservice Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 262.50 Billion
svg icon Market Size (2029) USD 421.02 Billion
svg icon Largest Share by Foodservice Type Quick Service Restaurants
svg icon CAGR (2024 - 2029) 9.91 %
svg icon Fastest Growing by Foodservice Type Cloud Kitchen
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 Foodservice Market Analysis

The Japan Foodservice Market size is estimated at 262.50 billion USD in 2024, and is expected to reach 421.02 billion USD by 2029, growing at a CAGR of 9.91% during the forecast period (2024-2029).

262.50 Billion

Market Size in 2024 (USD)

421.02 Billion

Market Size in 2029 (USD)

5.97 %

CAGR (2017-2023)

9.91 %

CAGR (2024-2029)

Largest Segment by Foodservice Type

45.93 %

value share, Quick Service Restaurants, 2023

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An increase in demand for convenient on-the-go food options, justified by a 10.22% increase in fast-food orders in 2022, is a major driver for the segment.

Largest Segment by Outlet Type

75.35 %

value share, Independent Outlets, 2023

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QSRs have occupied the largest share in the market as demand for healthy fast food increases against conventional fried variants, with 79% of the consumers eating healthy.

Fastest-growing segment by Foodservice Type

14.81 %

Projected CAGR, Cloud Kitchen, 2024-2029

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In 2022, almost 50% of Japanese youth preferred to order in than eat out, and with 94% population being active internet users, cloud kitchen is projected to grow in Japan.

Fastest-growing segment by Outlet Type

10.74 %

Projected CAGR, Chained Outlets, 2024-2029

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With approximately 3.8 million international visitors in 2022, the preference toward international branded chains was higher, leading to the expansion of these outlets in Japan.

Leading Market Player

3.28 %

market share, Seven & I Holdings Co. Ltd, 2022

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Seven & I Holdings Co. Ltd, the leading player, has an extensive network with operating brands like Denny's Japan, Hanamaru Udon, 7-Eleven, Ito Yokado, and Sogo & Seibu.

Quick service restaurants held the major share in the market due to the constant launch of new products

  • The Japanese foodservice market is known for its diverse range of dining options, from traditional Japanese cuisine to international cuisine. Japan has the world's highest number of Michelin-starred restaurants, with Tokyo alone boasting over 200 Michelin-starred restaurants. This recognition is a testament to the quality and attention to detail in food preparation and presentation in Japanese cuisine. Japan has some of the strictest food safety standards, and the government regularly inspects food establishments to ensure compliance. This emphasis on food safety indicates the importance placed on quality and the use of high-quality ingredients in Japanese cuisine.
  • Quick service restaurants in Japan are highly popular due to the country's busy lifestyle and the need for quick and convenient meals. Many QSR chains in Japan specialize in fast food, such as burgers, fried chicken, and noodles. Some popular quick service restaurants in Japan include McDonald's, KFC, MOS Burger, Lotteria, Freshness Burger, and Yoshinoya. QSRs are constantly involved in the launch of new products, and hence, have the largest share, and they are anticipated to register a CAGR of 8.99% during the forecast period.
  • The demand for cloud kitchens in Japan has also attracted significant investment from domestic and international companies. For example, COOKPAD Inc., a Japanese recipe-sharing and food delivery platform, invested in several cloud kitchen companies, including Kitchen Base and Z Holdings Corporation (formerly Yahoo Japan). In 2022, Singapore-based cloud kitchen operator, Smart City Kitchens, announced plans to expand to Japan with a new facility in Tokyo.
Japan Foodservice Market

Japan Foodservice Industry Segmentation

Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants are covered as segments by Foodservice Type. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location.

  • The Japanese foodservice market is known for its diverse range of dining options, from traditional Japanese cuisine to international cuisine. Japan has the world's highest number of Michelin-starred restaurants, with Tokyo alone boasting over 200 Michelin-starred restaurants. This recognition is a testament to the quality and attention to detail in food preparation and presentation in Japanese cuisine. Japan has some of the strictest food safety standards, and the government regularly inspects food establishments to ensure compliance. This emphasis on food safety indicates the importance placed on quality and the use of high-quality ingredients in Japanese cuisine.
  • Quick service restaurants in Japan are highly popular due to the country's busy lifestyle and the need for quick and convenient meals. Many QSR chains in Japan specialize in fast food, such as burgers, fried chicken, and noodles. Some popular quick service restaurants in Japan include McDonald's, KFC, MOS Burger, Lotteria, Freshness Burger, and Yoshinoya. QSRs are constantly involved in the launch of new products, and hence, have the largest share, and they are anticipated to register a CAGR of 8.99% during the forecast period.
  • The demand for cloud kitchens in Japan has also attracted significant investment from domestic and international companies. For example, COOKPAD Inc., a Japanese recipe-sharing and food delivery platform, invested in several cloud kitchen companies, including Kitchen Base and Z Holdings Corporation (formerly Yahoo Japan). In 2022, Singapore-based cloud kitchen operator, Smart City Kitchens, announced plans to expand to Japan with a new facility in Tokyo.
Foodservice Type
Cafes & Bars
By Cuisine
Bars & Pubs
Cafes
Juice/Smoothie/Desserts Bars
Specialist Coffee & Tea Shops
Cloud Kitchen
Full Service Restaurants
By Cuisine
Asian
European
Latin American
Middle Eastern
North American
Other FSR Cuisines
Quick Service Restaurants
By Cuisine
Bakeries
Burger
Ice Cream
Meat-based Cuisines
Pizza
Other QSR Cuisines
Outlet
Chained Outlets
Independent Outlets
Location
Leisure
Lodging
Retail
Standalone
Travel
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Japan Foodservice Market Size Summary

The Japan foodservice market is characterized by its rich diversity, offering a wide array of dining options that range from traditional Japanese cuisine to international flavors. The market is renowned for its high standards, as evidenced by the significant number of Michelin-starred restaurants, particularly in Tokyo. This emphasis on quality is further supported by stringent food safety regulations that ensure the use of high-quality ingredients. Quick service restaurants (QSRs) are particularly popular, catering to the fast-paced lifestyle of many Japanese consumers. These establishments, including well-known chains like McDonald's and KFC, dominate the market share and are continually innovating their menus to meet evolving consumer preferences. The rise of cloud kitchens, driven by increased e-commerce and food delivery demand, represents one of the fastest-growing segments in the market, with significant investments from both domestic and international players.

The full-service restaurant (FSR) segment also holds a substantial share of the market, appealing to an aging population that prefers more relaxed dining experiences. These restaurants are well-positioned to attract tourists seeking authentic local cuisine, contributing to the market's growth. The popularity of Asian cuisine, particularly sushi and ramen, plays a significant role in driving demand within the FSR sector. The market is highly fragmented, with major players like McDonald's, Seven & I Holdings, and Skylark Holdings holding a modest share. Recent trends indicate a shift towards cloud kitchen models, with traditional restaurants adapting to delivery-only services to meet post-pandemic consumer demands. This dynamic landscape underscores the ongoing evolution and resilience of the Japan foodservice market.

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Japan Foodservice Market Size - Table of Contents

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

    1. 1.1 Foodservice Type

      1. 1.1.1 Cafes & Bars

        1. 1.1.1.1 By Cuisine

          1. 1.1.1.1.1 Bars & Pubs

          2. 1.1.1.1.2 Cafes

          3. 1.1.1.1.3 Juice/Smoothie/Desserts Bars

          4. 1.1.1.1.4 Specialist Coffee & Tea Shops

      2. 1.1.2 Cloud Kitchen

      3. 1.1.3 Full Service Restaurants

        1. 1.1.3.1 By Cuisine

          1. 1.1.3.1.1 Asian

          2. 1.1.3.1.2 European

          3. 1.1.3.1.3 Latin American

          4. 1.1.3.1.4 Middle Eastern

          5. 1.1.3.1.5 North American

          6. 1.1.3.1.6 Other FSR Cuisines

      4. 1.1.4 Quick Service Restaurants

        1. 1.1.4.1 By Cuisine

          1. 1.1.4.1.1 Bakeries

          2. 1.1.4.1.2 Burger

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Meat-based Cuisines

          5. 1.1.4.1.5 Pizza

          6. 1.1.4.1.6 Other QSR Cuisines

    2. 1.2 Outlet

      1. 1.2.1 Chained Outlets

      2. 1.2.2 Independent Outlets

    3. 1.3 Location

      1. 1.3.1 Leisure

      2. 1.3.2 Lodging

      3. 1.3.3 Retail

      4. 1.3.4 Standalone

      5. 1.3.5 Travel

Japan Foodservice Market Size FAQs

The Japan Foodservice Market size is expected to reach USD 262.50 billion in 2024 and grow at a CAGR of 9.91% to reach USD 421.02 billion by 2029.

In 2024, the Japan Foodservice Market size is expected to reach USD 262.50 billion.

Japan Food Service Market Report Snapshots

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