Health and functional foods market in Japan - statistics & facts
Deregulations in the Japanese health foods market in 2015 have propelled the market on a growth trajectory and established functional foods as a distinct category. However, the market attracted widespread media attention in March 2024, following reports of fatalities linked to supplements containing rice fermented with red yeast (“beni koji”) by Kobayashi Pharmaceutical. While foods with function claims emerged as a driver of the health foods market, the scope of the incident was expected to dampen market growth.
General foods labeled with health claims are a segment that has regained tailwinds in recent years. Particularly, foods and beverages related to “washoku,” like fermented foods, are consciously eaten for health reasons in Japan. Given the reputation of functional foods in pill or tablet form suffered from the “beni koji” incident, general food products that already enjoy consumer trust will likely be the market focus.
Foods with health claims
Foods with health-promoting claims encompass “foods for specified health uses” (FOSHU), “foods with nutrient function claims” (FNFC), and foods with function claims. FOSHU were initially known as health foods in Japan and still require governmental review of efficacy and safety to bear health claims. Steps to reinvigorate market growth spawned the FNFC and food with function claim segments, which had more lenient approval processes. The latter quickly garnered manufacturers’ interest, with several hundred products registered as health foods with function claims within the first year of market development. Under the new system, businesses could label foods with function claims based on scientific evidence and promote ingredients including fatty acids, antioxidants, and other nutrients without needing the governmental review that FOSHU do. However, the responsibility for product safety remains with manufacturers after submitting the required information to the Consumer Affairs Agency.Eating habits and health awareness
Japan’s society is aging, and national medical expenditure is rising. As the desire for natural and health-beneficial foods grows, the health and functional foods market has been at the center of consumers' and businesses' interest. The traditional Japanese diet (“washoku”) is considered well-balanced and healthy, but the share of consumers regularly eating balanced meals is declining. Foods with health claims have risen in demand to supplement lacking nutrients, with older consumers being the core target groups.General foods labeled with health claims are a segment that has regained tailwinds in recent years. Particularly, foods and beverages related to “washoku,” like fermented foods, are consciously eaten for health reasons in Japan. Given the reputation of functional foods in pill or tablet form suffered from the “beni koji” incident, general food products that already enjoy consumer trust will likely be the market focus.
