Friday, February 10, 2012: 04:11:56 PM


Japan’s Food Processing Industry Favourable for Foreign Investment

Once regarded as complicated, the $255 bn Japanese food processing industry (as valued in 2010) now seems to offer promising opportunities to investors. Demographical changes and shifting demand trends account for this increased potential, says the US Department of Agriculture (USDA) Report, Japanese Food Processing Ingredients, Food Processing Sector.

With economic and social changes such as a fast-paced lifestyle and a greater influx of women into the workforce, the demand for ready-to-eat meals, canned products, processed meats and sea foods, and other products that make home-cooking easy, has risen significantly. This has led to the emergence of several convenience stores and other kinds of retail establishments, which have opened up new markets for international players.

The USDA report claims that despite the average and even sub-normal performance of the Japanese economy, the food processing sector is still functioning reasonably well. However, foreign investors will have to address challenges such as strict regulations on certain products as well as heightened food safety concerns prevalent in the country.

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