Better economic performance and higher consumer expenditure are expected to contribute to a higher growth in Japan’s Ice Cream Sector

Wednesday 17 July 2013, Amsterdam

The Japanese Ice Cream sector is set for significant growth, and is set to reach US$XXX billion by 2017, according to a leading consumer specialist latest report: ‘The Market Focus: Trends and Developments in the Ice Cream Sector in Japan’. In order to take full advantage of this vast market potential, those involved the in the Ice Cream sector must remain sensitive to consumer demand, and the relationship between this demand and trends and developments.
Analysis of consumer behavior, economic conditions, and demography reveals emerging opportunities in the Ice Cream sector
Great taste, exotic flavours, and premium packaging make Ice Cream a favourite eating out indulgence. Japan’s Ice cream industry has an equal trade-off between on premise and off premise sales. Ice Cream parlors in Japan, several of which are company stores, offer blend-ins, mix-ins, and smooth-ins in a wide range of flavors such as green tea, azuki bean, and exotic fruit combinations that are highly popular.

Consumer Goods
Changing consumer demand remains one of the most critical drivers of the Ice Cream market in Japan. This includes great taste, exotic flavors, and premium packaging, which make Ice Cream a favorite eating out indulgence.
An example of innovation driven by both visual appeal and practicality can be seen in Lotte’s Coolish range of ice creams, packaged in squeezable, re-sealable  pouch packs. This range, meant for kids, will make it easier to squeeze out the ice cream and eat more cleanly and safely. The Coolish ice cream packs also have an additional foam polymer that retains the product’s coolness and insulates the consumer, so they can hold the cold package in their hands.

Increased health concerns have popularized healthy Ice Creams in Japan

Health vs. Indulgence
The reduction of calories is likewise an ever-present core driver of the ice cream market: a fact that has been exacerbated in recent years. Though Ice Cream holds its primary appeal as an indulgent treat, increased health concerns have popularized healthy Ice Creams in Japan that are low fat, have low-carbohydrate content, or are pro-biotic. For example, in order to meet their customers’ needs Glico has introduced a low calorie, dairy-free ice cream aimed at those who are conscious about the calories they intake, lactose-intolerant or have restrictions in their dairy intake.

Low Cost Packaging
With rises in the cost of ice cream ingredients such as cocoa, and nuts, most ice cream manufacturers in Japan have chosen to reduce the pack size instead of raising the price. Therefore, ice cream manufacturers have decided to use different types of packaging for the different types of ice cream in order to leave consumers feeling pleased with the packaging and price of the ice cream. This, in theory, will mean that packaging type will differ based on the category: Impulse or Take-Home. The choices vary from paper and composites, rigid plastic tubs and paperboard boxes.
The packaging is very important in Japan’s Ice cream market as it is used as a key marketing tool, which helps increase personal appeal to the customer.  

Hypermarkets & Supermarkets continued to be the preferred distribution channel for Ice Cream, followed by Food & Drinks Specialists. Brand outlets of the leading Ice Cream brands, once a major attraction, have higher operational costs. In the Impulse Ice Cream category, Food & Drinks Specialists account for one-third of total sales.

The report is a result of an extensive research covering the Ice Cream market.

It offers:

• Analysis of consumer behaviour, economic conditions, and demography that reveals emerging opportunities in the Ice Cream sector.
• Key growth categories and analysis of the market dynamics of major Ice Cream categories.
• Market shares for the leading brands and private labels across Ice Cream categories.
• An overview of packaging trends in the Japanese Ice Cream sector, including primary packaging material and type, packaging closures, and outer packaging.
• The relationship between consumer Ice Cream demands and the dynamics between different Ice Cream types.

This will facilitate:

• Clear identification of promising areas for future growth, both in terms of innovative products and lucrative geographies.
• Proper understanding of shifting market dynamics to ensure maximum sales.
• Understanding of trends and the key drivers behind recent market changes.
• An insight into the complex picture of consumption’s variation between product categories.
• Explicit understanding of the relationship between key drivers of consumer demand in the Ice Cream market.