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Japan's fresh vegetable market is estimated at approximately 14 million metric tons of which around 5 percent comes from imports. In 2023, the United States was the fourth largest supplier of fresh vegetables to Japan at $52 million and the second largest by volume at 46,309 metric tons.

In relation to persistent rising food prices, Japan has seen a decline in overall vegetable oil consumption. Due to the more favorable crush margin for canola compared to soybeans, FAS/Tokyo forecasts a reduction in soybean imports and crush, while seeing an increase in rapeseed imports and crush for both MY 2023/24 and MY 2024/25.

This report highlights Japan’s food processing industry, notable trends, and a market snapshot of western Japan. The industry experienced a 4.1 percent decline in the value of food produced in 2023 from 2022 on a dollar basis totaling $182 billion compared to $190 billion in 2022.

U.S. beef exports to East Asia in 2022 are again on record pace after a record year in 2021. Despite economic uncertainties due to the COVID-19 pandemic, continued global supply chain challenges, and a competitive global beef market, U.S. beef exports to East Asia, both in value and volume, were outstanding in the first half of 2022.

The Japanese food market was valued at $698 billion in 2021 with retail sales accounting for $467 billion (67 percent) and foodservice sales accounting for $231 billion (33 percent). Japan relies on imports from other countries for the bulk of its food supply. The United States is the leading agricultural product supplier with a 23 percent market share in 2021.

Mandarin (Citrus unshiu) production in Japan continues to gradually decrease along with a falling number of farmers. Overall Japanese citrus consumption fell as the price of imported citrus, including oranges, grapefruit and lemons, increased due to a combination of shipping challenges, inflation, and Japanese yen depreciation.

Japan’s National Tax Agency (NTA) proposed 9 new geographical indications (GIs) for alcoholic beverages from the United Kingdom. NTA will accept public comments on the proposal through January 16, 2023.

This year ATO Osaka organized various promotional activities across western Japan, utilizing print, television, and radio media to reach 15 million consumers (excluding social media). ATO Osaka partnered with local foodservice establishments to promote U.S. beef, pork, cheese, peppers, fruits, nuts, and other ingredients via special menu promotions.

This year ATO Osaka organized USA pavilions at three trade shows in Japan. In July, the ATO exhibited for the first time at FOODEX Kansai, the western Japan version of the USDA-endorsed show held in Tokyo every March. In August, the ATO returned to the Japan International Seafood Show for the first time in three years.

The return of international visitors to Japan has started to offer glimpses of positive economic activity among the hotel and restaurant industries. Hotels experienced guest stay increases of 32.5 percent year over year, to 42.1 million, up 5.8 percent compared to October 2019.

Japan is updating its transport biofuel standards, which will expire in March 2023. In May 2022, Japan pledged to take all available measures to double demand for bioethanol by 2030. Boosting domestic production of sustainable aviation fuel (SAF), including alcohol-to-jet SAF, is Japan’s primary focus for meeting that commitment.

Japan’s Ministry of Health, Labour and Welfare (MHLW) proposed revisions to Japan’s maximum residue levels for 5 agricultural chemicals (Acequinocyl, Isofetamid, Methoxyfenozide, Pyriproxyfen, and Mosapride) for various agricultural commodities.