Organic in Japan: A Growing Market and Opportunities for UK Businesses

Japan’s organic agriculture sector is experiencing significant growth, driven by increasing consumer demand for healthy and sustainable food. Despite challenges such as high production costs and strict certification requirements, the market presents a promising opportunity for UK businesses looking to export organic products. This article provides an in-depth analysis of the Japanese organic market, its challenges, and how UK companies can leverage this growth.

Organic Agriculture in Japan

Definition and certification of organic products in Japan

Japan has a well-defined certification system for organic agriculture, regulated under the JAS (Japanese Agricultural Standards) Organic Certification. Only certified producers can label their products as "organic" or "bio".

Key requirements of JAS Organic Certification include:

• No synthetic pesticides or fertilizers used for at least two years before planting.

• GMO-free production.

• Measures to prevent contamination from non-organic sources.

Organic farming in Japan: a small but growing sector

Despite growing interest, organic farming in Japan covers only 63,000 hectares, representing just 2.4% of total agricultural land. The government, however, aims to expand this to 100,000 hectares by 2050, as part of its Green Food System strategy.

Key challenges slowing down this expansion include:

• Small farm sizes, making organic farming less profitable.

• An aging farming population, with an average farmer age of 67 years.

• Complex and costly certification procedures under the JAS system.

The Organic Food Market in Japan

Market Size and Growth

The Japanese organic food market is on a steady rise, reaching ¥224 billion (£1.2 billion) in 2022, up from ¥185 billion (£990 million) in 2017.

Although Japan’s organic food consumption remains lower than in European countries, demand is growing due to increased health awareness. In 2022, around 32.6% of Japanese consumers purchased organic food at least once a week.

Japanese Consumer Trends

Japanese consumers prioritize health and safety when choosing organic products. A 2022 survey found that:

• 85.6% believe organic products are healthier.

• 84.7% consider them too expensive.

• 51% prefer to buy domestic organic products, even at a higher price.

High prices remain the biggest obstacle to broader adoption of organic food.

Best-Selling Organic Products in Japan

The most purchased organic products in Japan include:

1. Organic vegetables (50.1% of consumers)

2. Organic tofu (32.2%)

3. Organic natto (fermented soybeans) (32.1%)

Other products, such as organic miso, rice, and green tea, are also gaining popularity.

Organic Food Distribution Channels in Japan

Organic food in Japan is mainly sold through:

• Supermarkets (86%)

• Cooperative stores and home delivery services (27.4%)

• Specialty stores and farmers’ markets (23%)

E-commerce platforms, such as Rakuten and Amazon Japan, are also expanding access to organic products.

Opportunities for UK Businesses

Why Japan is an Attractive Market

Japan presents several opportunities for UK organic businesses:

• High demand for premium organic products: Japanese consumers are willing to pay more for high-quality imports.

• Strong appreciation for British products: The "Made in UK" label is associated with quality and authenticity, particularly in wine, dairy, and bakery products.

• A structured regulatory environment: Despite strict certification requirements, Japan provides a clear and regulated market for organic imports.

Promising Organic Products for UK Exporters

The following UK organic products have strong market potential in Japan:

• Organic wine: Increasingly popular among Japanese consumers.

• Organic dairy products: British cheeses, butter, and yoghurts are highly appreciated.

• Organic olive oil and plant-based oils: Gaining popularity in Japanese modern cuisine.

• Organic bread and flour: French and European-style bakeries are in high demand.

• Organic cosmetics: The natural beauty sector is booming in Japan.

How to Succeed in the Japanese Organic Market

For successful market entry, UK businesses should:

• Obtain JAS Organic Certification for their products.

• Partner with specialized organic distributors, such as Natural House or Bio c’ Bon Japan.

• Leverage e-commerce and home delivery services to reach urban consumers.

• Participate in industry trade fairs, like BioFach Japan or Foodex Japan, to build local partnerships.

Future Trends

Japan aims to triple its organic farming area by 2050, supported by government incentives. However, challenges remain:

• High costs for consumers and producers.

• Limited training and support for organic farmers.

• Low consumer awareness of the environmental benefits of organic farming.

Greater involvement from large corporations and startups could accelerate the organic transition and overcome these challenges.