Japan Upcycled Food Products Market - 2024-2031

Japan's Upcycled Food Products Market reached US$ 2.1 billion in 2023 and is expected to reach US$ 3.8 billion by 2031, growing with a CAGR of 3.4 % during the forecast period 2024-2031.

Japan's upcycled food products market is gaining momentum as consumers become more environmentally conscious and seek sustainable alternatives. The country's growing awareness of food waste and its environmental impact aligns well with the upcycling trend, where ingredients that would otherwise be discarded are repurposed into high-quality food products. The market is poised for growth as the country strives to meet its ambitious food waste reduction goals.

The Ministry of Agriculture, Forestry, and Fisheries of Japan has set a target for fiscal 2030 to reduce food waste to 4.89 million tons, a significant decrease from the 9.8 million tons recorded in fiscal 2000. This target includes 2.73 million tons from businesses and 2.16 million tons from households. The efforts align with the broader global commitment under the United Nations Sustainable Development Goals (SDGs), which call for halving per capita global food waste at the retail and consumer levels by 2030.

As Japan works towards such objectives, upcycled food products, which utilize food that would otherwise be discarded, are becoming a key solution to combat food waste while offering innovative and sustainable alternatives for consumers. This growing trend reflects increasing awareness and demand for sustainable products that contribute to environmental conservation and resource efficiency.

Dynamics

Government Initiatives and Policies

The government initiatives and policies aimed at sustainability and food waste reduction drive the country's market. As governments increasingly prioritize sustainability, they are trying to introduce regulations, incentives, and awareness campaigns to promote the recycling of food waste. These policies create a favorable environment for businesses to upcycle food waste into valuable products like snacks, protein powders, and animal feed. This reduces environmental impact and unlocks new economic opportunities, driving the growth of the upcycled food market.

In Japan, the government's success in reducing food waste achieving a 510,000-ton reduction in 2022 and meeting its food waste reduction target eight years ahead of schedule has significantly impacted the upcycled food market. Japan's commitment to sustainability is further evidenced by its ranking 21st in the SDGs Index and first in the World Economic Forum's Travel & Tourism Development Index, emphasizing sustainability as a key driver of economic growth focussing on upcycling.

Lack of Consumer Awareness

Consumer awareness is a significant restraint for the upcycled food products market in Japan. Many consumers in this country lack an understanding of what upcycling is and the environmental benefits it offers. Without knowledge of how surplus ingredients can be safely repurposed, there is a hesitation to adopt these products. The concept of upcycling may be unfamiliar, making it difficult for consumers to view it as a desirable or trustworthy option.

Japanese consumers have a strong preference for freshness and quality in food. Traditional cuisine emphasizes seasonal ingredients, and upcycled products, which may involve using food that would otherwise be discarded, might not align with these cultural norms. Overcoming this cultural bias toward freshness could be a significant barrier to market growth in the Japanese market.

Segment Analysis

The Japan upcycled food products market is segmented based on source, ingredient type, product, distribution channel, application and region.

Increasing Demand for Healthy Snacks

The Japan upcycled food products market is segmented based on application into snacks & beverages, bakery & confectionery, ingredients & additives, meat & seafood, pet food, and others. The snacks and beverages segment is a dominant force in the upcycled food market, driven by a growing consumer preference for sustainable and health-conscious products. Many innovative snack options are made from surplus or leftover ingredients, such as potato peels turned into chips or fruit-based beverages.

The snacks help reduce food waste but also cater to the increasing demand for healthier, eco-friendly snacks. With a strong cultural emphasis on sustainability and food innovation, Japan is capitalizing on the opportunity to create unique, nutritious snacks that appeal to environmentally-conscious and health-driven consumers. The importance of snacks in Japan's food culture further fuels the success of upcycled products.

According to NZTE, 23% of Japanese consumers eat a snack daily, and healthy snacks currently make up 11% of the total snack market-projected to grow to 13% by 2027. This shift aligns with the rise of upcycled snacks, such as granola made from surplus grains or fruits, which offer both sustainability and nutritional benefits. These products not only reduce food waste but also meet the growing demand for functional, guilt-free snacks, positioning upcycled foods as a key player in Japan's rapidly evolving food market.

Competitive Landscape

The major Japanese players in the market include AIO, Bake Me Healthy, Barnana, cascarafoods, Green Bowl Foods, CRUST Group, I Am Grounded, Matriark Foods, Oisix Ra Daichi Co., Ltd., and Pluck Tea.

Sustainability Analysis

The upcycled food products market in Japan demonstrates a significant commitment to sustainability, addressing both food waste and resource efficiency. As one of the world's most environmentally conscious nations, Japan is increasingly embracing the concept of upcycling, where food by-products or surplus ingredients are transformed into value-added products. This trend reduces the environmental impact of food production by diverting waste from landfills, thus contributing to the country's carbon reduction goals.

Furthermore, it aligns with Japan's growing movement towards circular economies, where materials are reused and recycled, fostering a more sustainable food system. The upcycled food products in Japan are becoming a key component of sustainable consumer behavior. Japanese consumers, known for their discerning tastes and environmental awareness, are increasingly seeking products that not only minimize waste but also offer health benefits.

By Source

• Food Waste
• Agricultural by Products
• Brewery and Distillery Waste
• Other

By Ingredient Type

• Proteins
• Fibers
• Oils and Fats
• Flours
• Sweeteners
• Others

By Product

• Snacks & Beverages
• Bakery & Confectionery
• Ingredients & Additives
• Meat & Seafood
• Pet Food
• Other

By Distribution Channel

• Supermarkets & Hypermarkets
• Specialty Stores
• Online
• Other

Key Developments

• In November 2024, Norwegian Mycelium (NoMy) launched a subsidiary in Sapporo, Japan, to expand its sustainable fermentation technology, upcycling agricultural byproducts into alternative proteins.
• In February 2023, The Nagano Upcycle Food project launched Shinto Goen Ale, an upcycled beer made from food scraps, following its earlier canned food products made from Shinshu Fukumi chicken.
• In August 2024, Upcycled Foods, Inc. unveiled Atoria's Family Bakery Mini Upcycled Naan, a collaboration with the Upcycled Foods Lab. These mini flatbreads are made from upcycled barley, wheat, and rye flour.

Why Purchase the Report?

• To visualize the Japan upcycled food products market segmentation based on source, ingredient type, product, distribution channel, application, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous upcycled food products market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Japan upcycled food products market report would provide approximately 33 tables, 36 figures and 195 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies