Japan Dairy Market Overview

Market Size in 2024: USD 58,638.3 Million

Market Size in 2033: USD 87,895.5 Million

Market Growth Rate 2025-2033: 4.4%

According to IMARC Group's latest research publication, the Japan dairy market size reached USD 58,638.3 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 87,895.5 Million by 2033, exhibiting a growth rate (CAGR) of 4.4% during 2025-2033.

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Growth Factors in the Japan Dairy Market

• Growing Health Awareness Among Consumers

The growing health consciousness among consumers is primarily driving the growth of the Japan dairy market. Furthermore, the escalating preference for dairy products, like cheese and yogurt, as a source of essential nutrients like proteins, vitamins, and minerals, is also creating a positive outlook for the market. For instance, in 2020, the production volume of cheese in Japan reached around 165 thousand metric tons. Processed cheese accounts for most cheese product sales in Japan, with a small share attributable to natural cheese. Similarly, in the Yogurt market, volume is expected to amount to 2.18 billion kg by 2028. The yogurt market is expected to show a volume growth of 0.2% in 2025. The average volume per person in the yogurt market is expected to amount to 17.6 kg in 2024. In addition to this, the increasing disposable incomes of consumers and the elevating levels of lifestyles are also augmenting the consumption of dairy products across the country.

• Increasing Number of Cafes and Restaurants

The growing utilization of dairy products like cheese, milk, yogurt, ice cream, butter, etc., in restaurants and cafes is further creating a positive outlook for the overall market. For instance, as of the end of March 2023, the number of restaurants in Japan amounted to roughly 935.35 thousand. Moreover, as of March 2022, the total number of authorized coffee shops in Japan amounted to approximately 100.57 thousand. Such an increasing number of cafes and eateries are significantly contributing to the market growth. In addition to this, ice cream is considered one of the most popular sweet treats among the Japanese population. The most sold ice cream type in Japan was family-sized multipacks, followed by ice cream served in paper cups, whereas vanilla ice cream was rated the most popular flavor in 2022. Moreover, on average, almost three-quarters of Japanese people drink coffee daily.

• Rising Product Offerings and Innovation

The dairy market is experiencing a surge in product offerings, driven by consumer demand for variety, convenience, and health-conscious options. This expansion includes innovations such as lactose-free milk, plant-based alternatives like almond and oat milk, artisanal cheese, probiotic yogurts, and flavored dairy beverages. Manufacturers are responding to evolving consumer preferences by diversifying their portfolios to cater to a wider range of tastes and dietary needs, fostering competition and driving growth in the dairy market. For instance, in September 2023, Kaneka Corporation launched a new individual-serving Organic Yogurt. Similarly, in March 2024, Japanese dairy giant Meiji launched a functional milk beverage that supports vision and sleep, containing 7.5mg of the functional ingredient crocetin.

Key Trends in the Japan Dairy Market

• Dominance of the Yogurt Segment

Yogurt continues to dominate the Japan dairy market, holding approximately 35% market share in 2024, making it the largest segment. The segment's strong position is driven by the increasing consumer preference for functional dairy products with health benefits. Major companies, including Meiji Group, Morinaga Milk, and Megmilk, have introduced a wide range of yogurt-based products, including drinks, desserts, and snacks, to cater to the growing demand. The segment's growth is further supported by the rising trend of yogurt consumption during breakfast and as a healthy snack.

• Growing Demand for Organic and Sustainable Products

In Japan, the dairy market is experiencing a surge in demand for organic and locally sourced dairy products. This trend is driven by consumer preferences for natural and sustainable options, as well as concerns about food safety. Japanese consumers are increasingly seeking products that are part of a balanced diet, leading to a shift towards low-fat and lactose-free dairy products, as well as products that contain probiotics and other functional ingredients.

• Innovation in Flavor and Functional Products

The market is witnessing significant innovation in flavor profiles and functional benefits. Companies are introducing unique flavors tailored to Japanese tastes, such as Meiji's sakura and lychee-flavored drinking yogurt. Additionally, there's a growing focus on functional dairy products that offer specific health benefits, including products for vision support, sleep enhancement, and digestive health. This trend reflects the evolving consumer demand for products that combine taste with wellness benefits.

Japan Dairy Industry Segmentation:

The report has segmented the market into the following categories:

Breakup by Product Type:

• Liquid Milk
• Flavored Milk
• Cream
• Butter
• Cheese
• Yoghurt
• Ice Cream
• Anhydrous Milk Fat (AMF)
• Skimmed Milk Powder (SMP)
• Whole Milk Powder (WMP)
• Whey Protein
• Lactose Powder
• Curd
• Paneer

Breakup by Region:

• Kanto Region
• Kansai/Kinki Region
• Central/Chubu Region
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region

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Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players, including:

Recent News and Developments

• March 2024: Japanese dairy giant Meiji launched a functional milk beverage called "Meiji Eye and Sleep W Support" that supports vision and sleep, containing 7.5mg of the functional ingredient crocetin derived from gardenia fruit and saffron.
• September 2023: Kaneka Corporation launched a new individual-serving Organic Yogurt through Kaneka Foods Corporation. The new product includes both plain yogurt and a two-layered yogurt with blueberry confiture, both JAS-certified organic.
• Q4 2024: The Japanese dairy sector is experiencing subtle shifts due to economic factors like inflation, interest rates, and currency fluctuations. The Bank of Japan's decision to maintain a low interest rate has supported consumer spending in the dairy sector.
• 2024: The Yogurt segment reached approximately 35% market share, making it the largest segment in the Japan dairy market, driven by increasing consumer preference for functional dairy products.

Future Outlook

The future of the Japan dairy market looks promising, driven by continued health consciousness among consumers and technological advancements in product development. The market is expected to benefit from the growing trend of functional foods, increasing demand for organic and sustainable products, and continuous innovation in flavors and product formats. However, challenges such as an aging population and changing dietary preferences toward plant-based alternatives may impact traditional dairy consumption patterns. Companies that can successfully adapt to evolving consumer preferences and introduce innovative, health-focused products are likely to capture a larger market share in the coming years.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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