Japan Foodservice Market Size

Japan Foodservice Market Analysis

The Japan Foodservice Market size is estimated at 262.50 billion USD in 2024, and is expected to reach 421.02 billion USD by 2029, growing at a CAGR of 9.91% during the forecast period (2024-2029).

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262.50 Billion

Market Size in 2024 (USD)

421.02 Billion

Market Size in 2029 (USD)

5.97 %

CAGR (2017-2023)

9.91 %

CAGR (2024-2029)

Largest Segment by Foodservice Type

45.93 %

value share, Quick Service Restaurants, 2023

An increase in demand for convenient on-the-go food options, justified by a 10.22% increase in fast-food orders in 2022, is a major driver for the segment.

Largest Segment by Outlet Type

75.35 %

value share, Independent Outlets, 2023

QSRs have occupied the largest share in the market as demand for healthy fast food increases against conventional fried variants, with 79% of the consumers eating healthy.

Fastest-growing segment by Foodservice Type

14.81 %

Projected CAGR, Cloud Kitchen, 2024-2029

In 2022, almost 50% of Japanese youth preferred to order in than eat out, and with 94% population being active internet users, cloud kitchen is projected to grow in Japan.

Fastest-growing segment by Outlet Type

10.74 %

Projected CAGR, Chained Outlets, 2024-2029

With approximately 3.8 million international visitors in 2022, the preference toward international branded chains was higher, leading to the expansion of these outlets in Japan.

Leading Market Player

3.28 %

market share, Seven & I Holdings Co. Ltd, 2022

Seven & I Holdings Co. Ltd, the leading player, has an extensive network with operating brands like Denny's Japan, Hanamaru Udon, 7-Eleven, Ito Yokado, and Sogo & Seibu.

Quick service restaurants held the major share in the market due to the constant launch of new products

Japan Foodservice Industry Segmentation

Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants are covered as segments by Foodservice Type. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location.

• The Japanese foodservice market is known for its diverse range of dining options, from traditional Japanese cuisine to international cuisine. Japan has the world's highest number of Michelin-starred restaurants, with Tokyo alone boasting over 200 Michelin-starred restaurants. This recognition is a testament to the quality and attention to detail in food preparation and presentation in Japanese cuisine. Japan has some of the strictest food safety standards, and the government regularly inspects food establishments to ensure compliance. This emphasis on food safety indicates the importance placed on quality and the use of high-quality ingredients in Japanese cuisine.
• Quick service restaurants in Japan are highly popular due to the country's busy lifestyle and the need for quick and convenient meals. Many QSR chains in Japan specialize in fast food, such as burgers, fried chicken, and noodles. Some popular quick service restaurants in Japan include McDonald's, KFC, MOS Burger, Lotteria, Freshness Burger, and Yoshinoya. QSRs are constantly involved in the launch of new products, and hence, have the largest share, and they are anticipated to register a CAGR of 8.99% during the forecast period.
• The demand for cloud kitchens in Japan has also attracted significant investment from domestic and international companies. For example, COOKPAD Inc., a Japanese recipe-sharing and food delivery platform, invested in several cloud kitchen companies, including Kitchen Base and Z Holdings Corporation (formerly Yahoo Japan). In 2022, Singapore-based cloud kitchen operator, Smart City Kitchens, announced plans to expand to Japan with a new facility in Tokyo.