Market Leaders in Japan
The top ten companies in the whole food and beverage industry ranked by total sales in1998 (financial year ending March 1999 or December 1998) are as follows:
|1||Kirin Brewery||Alcoholic beverages|
|2||Asahi Breweries||Alcoholic beverages|
|4||Nippon Meat Packers||Meat products|
|5||Ajinomoto||Diversified food company|
|6||Yamazaki Baking||Bread, cakes|
|7||Snow Brand Milk Products||Milk products|
|8||Sapporo Breweries||Alcoholic beverages|
|9||Meiji Milk Products||Milk products|
|10||Morinaga Milk Industry||Milk products|
Among the top food and drink companies in Japan are two major international companies.Coca-Cola is the top soft drink company in Japan and Nestle is the top brand in instantcoffee. Nestle Japan is also the second most profitable company in the food and drinkindustry, a remarkable feat for a foreign company. A few other international companieshave won significant market share in some sectors. This includes Haagen-Dazs Japan rankedfifth in the ices market, Nihon Kellogg market leader in breakfast cereals and NipponLever ranked eight in the processed fats and oils sector.
The beverage market (alcoholic and non-alcoholic) in Japan is massive. The total alcoholicbeverages market is worth Y4.7 trillion (US$35.9 billion) of which Y2.5 trillion (US$19.1billion) is beer (1998 figures). The beer market is dominated by four companies, all ofwhich are in the top ten food and drink companies - Kirin Brewery, Asahi Breweries,Sapporo Breweries and Suntory. For many years Kirin Brewery had a massive market share ofaround 60%. Over recent years Asahi Breweries continuously took market share, finallypushing Kirin into second place in late 1998. Now Asahi Breweries has around 40% marketshare and Kirin less than 40%.
The other major change in this market inrecent years is the rapid increase in demand for happoshu (sparkling malt beverage madefrom a low malt content, similar to beer but cheaper). This product is in demand becauseof the continuing recession in Japan. All the brewers, except for Asahi Breweries, nowproduce happoshu.
The soft drinks market in Japan was worth a massive Y3.96 trillion in 1998 (US$30.2billion); the estimate for 1999 is Y4.2 trillion (US$36.8 billion). Three of the topalcoholic beverage companies are also among the top soft drink companies (Asahi, Kirin andSuntory). Coca-Cola is the top soft drink company with around 30% market share. There are15 Coca-Cola bottling companies in Japan. The other top soft drink companies are OtsukaBeverage (parent company Otsuka Pharmaceutical), Calpis Co., DyDo Drinco, Ito En, NestleJapan, Pokka and UCC Ueshima Coffee.
The unusual characteristic of the softdrinks market in Japan is that it is dominated by still drinks (ready-to-drink coffee andready-to-drink tea) rather than by carbonated beverages. Coca-Cola's top-sellingbrand in Japan is Georgia ready-to-drink coffee, rather than Coke.
Confectionery and Snack Foods
The top chocolate and sugar confectionery companies are Meiji Seika, Lotte, Morinaga,Ezaki Glico and Fujiya. The top snack foods company is Calbee. Meiji Seika is unusual inthat 41% of sales are from pharmaceuticals. An interesting fact about Lotte is that theLotte company in South Korea is larger than the Japanese parent company, leading somepeople to believe erroneously that Lotte is a Korean company. Among the other topcompanies, Ezaki Glico is also an important producer of curry roux preparations. All thetop confectionery companies are also among the top ice cream companies, except for MeijiSeika which has just a few ice cream products.
Calbee is market leader in snack foods with37% market share, well ahead of the company ranked second. Calbee has a commanding lead inpotato chips. This company is also among the leaders in breakfast cereals.
Cereal products - flourmilling, bread, cakes, noodles
The largest flour miller in Japan is Nisshin Flour Milling with 37% market share. Rankedsecond is Nippon Flour Mills with 21%, followed by Showa Sangyo in third place.
Yamazaki Baking dominates the bread marketwith 35% share; this company is also a major player in cakes, both western and Japanesetype cakes. The subsidiary company Yamazaki Nabisco's Ritz brand is ranked second inthe cookies market.
Market leader in cup noodles is Nissin FoodProducts, a company with many production plants around the world; Nissin also producesbagged instant noodles and has 22% share of this market. The other top cup noodle andbagged instant noodle companies are Toyo Suisan, Myojo Foods and Sanyo Foods; the latteris bagged instant noodle market leader.
The top three dairy companies are Snow Brand Milk Products, Meiji Milk Products andMorinaga Milk Industry. They handle raw milk and produce a variety of milk productsincluding milk for drinking, milk-based drinks, yogurt, cheese, butter, milk powder andevaporated milk. Most of the cheese consumed in Japan is imported but home production isgradually increasing. Included under milk products is ice cream. In this sector the marketleaders include both the top dairy companies mentioned here, plus the top confectionerycompanies (see above). Another important milk product, the lactic acid bacteria drink(another Japanese invention) Yakult produced by Yakult Honsha has become known around theworld.
This market is dominated by frozen ready meals, often in single portion packs to suit themodern life-style in Japan. The top companies in frozen foods are Nichirei, Katokichi andAjinomoto (world leader in monosodium glutamate).
Sauces, dressings and seasonings
The market leader in mayonnaise and dressings is Q P Corp., followed by Ajinomoto. Insauces the top tomato ketchup company is Kagome, followed by Kikkoman using the Del Montebrand. Kikkoman is top in soy sauce. House Foods and S & B Foods are the top companiesin spices and curry roux type preparations.
The top companies producing hams, sausages, bacon, etc. in Japan are Nippon Meat Packers(known as Nippon Ham), Itoham Foods, Prima Meat Packers (Prima Ham), Marudai Food and SnowBrand Food (parent company Snow Brand Milk Products). These companies also rear livestock.
Processed fats and oils
Once again Ajinomoto is among the market leaders. Two of the top milk companies, SnowBrand Milk and Meiji Milk, are also leaders in yellow fats (margarine and fat spreads).Snow Brand leads the retail yellow fats market while Meiji Milk is ranked third. NisshinOil Mills is the largest producer of edible oils in Japan, Honen Corp. is second. Theother major companies are Fuji Oil, Ajinomoto and Showa Sangyo.
Retort packaged foods
This is an important market in Japan; it is led by House Foods. The other market leadersinclude Ajinomoto, Otsuka Foods and S & B Foods. The largest sector is retort packagedcurried meals; pasta sauces are also important.
The above information was taken from a new report on the market leaders in the food andbeverage industry in Japan published by Japanscan Ltd. For more information go to
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