Prices for over 1,000 food items in Japan set to rise in June

**Over 1,000 Food Items in Japan Set for Price Increases in June** More than 1,000 food products across Japan will carry higher retail prices from June, according to industry surveys released in late April. Seasonings represent the largest share of affected items, followed by processed foods such as retort pouches and instant meals. Teikoku Databank, which tracks manufacturer price revisions, reported that 1,047 stock-keeping units will rise an average of 11 percent beginning in June. The figure covers notifications submitted by manufacturers to major retailers through mid-April. The Ministry of Internal Affairs and Communications consumer price index already showed a 5.3 percent year-on-year increase for food excluding fresh produce in March.

Category Breakdown

Seasoning products account for 312 items, or roughly 30 percent of the total. Manufacturers including Kikkoman and Yamasa have notified retailers of increases ranging from 8 to 15 percent on soy sauce, mirin, and dashi stock. Processed foods follow with 287 items, led by retort curry and pasta sauce lines from House Foods and Ajinomoto. Dairy-based items, confectionery, and beverages make up the remaining categories. Teikoku Databank analyst Hiroyuki Ohara stated, “The concentration in seasonings reflects sustained pressure from imported raw materials priced in U.S. dollars and elevated domestic logistics costs.”

Economic and Supply Background

Japan imports approximately 60 percent of its caloric intake on a calorie basis, according to the Ministry of Agriculture, Forestry and Fisheries. The yen traded near 155 to the dollar in April, compared with 110 in early 2022. Crude oil and natural gas prices, although lower than 2022 peaks, remain above pre-pandemic levels and directly affect domestic fertilizer, packaging, and transport expenses. The Japan Food Industry Association noted in its March policy brief that wheat, edible oil, and packaging resin contracts renewed in the first quarter carried increases of 7 to 12 percent. These contracts typically pass through to shelf prices with a two-to-three-month lag, aligning with the June implementation window.

Manufacturer and Retailer Responses

Kikkoman Corporation confirmed in an earnings call on 25 April that selected soy sauce and seasoning products would rise an average of 9 percent from 1 June. The company cited a 22 percent increase in the cost of imported soybeans and a 15 percent rise in domestic glass bottle expenses since the previous revision in October 2023. Ajinomoto Co. Inc. reported similar adjustments for its hon-dashi and cooking wine lines. A company spokesperson said the firm would absorb part of the cost increase through productivity measures but could not fully offset currency and commodity movements. Seven & i Holdings, operator of the 7-Eleven convenience store chain, stated it would maintain current prices on private-label seasonings until the end of June while reviewing supplier contracts. The retailer indicated that any subsequent adjustments would be communicated through in-store signage at least two weeks in advance.

Consumer Impact and Prior Trends

The Statistics Bureau’s March consumer price index recorded a cumulative 21 percent rise in the food-at-home index since January 2021. Real wages, adjusted for inflation, declined 1.3 percent year-on-year in February, according to the Ministry of Health, Labour and Welfare. Household survey data show that lower-income brackets allocate a larger share of expenditure to processed seasonings and ready-to-eat items. The Bank of Japan’s April regional economic report noted that several prefectural branches observed retailers absorbing a portion of earlier price hikes through narrower margins, limiting the full pass-through to consumers. No similar absorption was indicated for the June round.

Policy and Industry Outlook

The Ministry of Agriculture, Forestry and Fisheries has maintained a monitoring group that meets monthly to review import dependency and domestic production capacity. No additional subsidies for processors have been announced for the current fiscal year. Further price revision notices for July and August are expected by mid-May. Teikoku Databank plans to release an updated tally covering those months on 20 May. Retailers and manufacturers will continue negotiations on volume discounts and promotional calendars through the end of the current fiscal quarter on 30 June. This is Kenji Tanaka for Global1 News, reporting from Tokyo. 🇯🇵

This is Kenji Tanaka for Global1 News, reporting from Tokyo. 🇯🇵