Boston, MA -- (SBWIRE) -- 08/12/2014 -- BMI's outlook for Japan's food and drink industry remains subdued as the stagnant economy continues to limit the industry's growth potential. Consumption tax hikes, planned for April 2014, will further weaken the Japanese consumer, while the absence of structural reforms and negative demographic tendencies will weigh on the economy over the longer term.

Prime Minister Shinzo Abe's combination of ultra-loose monetary policy and higher public spending bolstered economic growth in 2013. As one of the measures to increase its revenues, the government is considering gradually raising the consumption sales tax - from 5% to 10% - by 2015. This will put additional pressure on consumer spending power.

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Headline Industry Data (local currency)

- Per capita food consumption (local currency) growth (y-o-y) in 2014: +0.25%; CAGR to 2018: +0.4%.
- Alcoholic drinks value (local currency) sales growth (y-o-y) in 2014: +0.5%; CAGR to 2018: +0.7%.
- Soft drinks value (local currency) sales growth (y-o-y) in 2014: +3.6%; CAGR to 2018: +3.4%.
- Total mass grocery retail value (local currency) sales growth (y-o-y) in 2014: +0.4%; CAGR to 2018: +0.3%.

Key Industry Trends

Suntory Aims To Increase China Exposure: In March 2014, it was announced that Suntory, one of Japan's largest beverage companies behind Kirin and Asahi, would enter into a joint venture (JV) with Chinese soft drinks producer China Huiyuan Juice Group in the country. This move continued Suntory's overseas expansion strategy as the Japanese beverage continued to face stagnation. In our view, the move makes strategic sense for both companies, with each standing to gain from greater geographic exposure (predominantly in the case of Suntory), and new products (Huiyuan). Huiyuan is the leading producer of juice drinks in China, controlling more than 50% of the market by sales volume. Suntory would be able to leverage off the considerable supply network Huiyuan holds in East China, as well as from local market...

The Japan Food & Drink Report features Business Monitor International (BMI)'s market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.

BMI's Japan Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in Japan.

Key Benefits

- Benchmark BMI's independent food and drink industry forecasts for Japan to test other views - a key input for successful budgeting and strategic business planning in the Japanese food and drink market.
- Target business opportunities and risks in Japan through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, and views, covering food and drink manufacturing and consumption and the retail market.

Business Environment Rankings

BMI's Food & Drink Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors, food and drink manufacturers and mass grocery retailers.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the food, drink and mass grocery retail sectors, and within the broader political, economic and business environment.

Food Forecasts

BMI's food chapter is divided into sections such as Meat, Fish, Confectionary, Dairy and Canned Foods, and provides insight into a market's food industry, centred on a forecast to end-2018 for the sector. The chapter includes the following elements:

Industry Forecast Scenario - Historical data series and forecasts to end-2018 for growth of key indicators within a market's food industry. Including consumption, food consumption as % of GDP, canned food sales, confectionery sales and food and drink imports and exports, among others.

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