Prices Of 30,000 Japan Food Products Soared In 2023

The prices of 32,395 food products surged in Japan in 2023, a substantial increase from the previous year's 25,768 items, according to a report by private research company Teikoku Databank Ltd., as reported by Yuko Shimada for Mainichi Shimbun.

While this surge has positively impacted manufacturers' profitability, consumers are exhibiting signs of "fatigue," with sales volumes for certain food products declining after price hikes.

While this surge has positively impacted manufacturers' profitability, consumers are exhibiting signs of "fatigue," with sales volumes for certain food products declining after price hikes.

Despite the continued trend of passing on rising raw material costs and increased labor expenses due to worker shortages to retail prices, there is a slight relief for consumers as the pace of price hikes has slowed since the summer.

Teikoku Databank anticipates around 10,000 food items to experience price increases in 2024, with expectations that these hikes will "settle down" for the time being. The average rate of price increases throughout 2023 ranged from 6% to 14%.

The trend of passing on rising costs to retail prices persisted, with 11,837 processed food products experiencing price hikes this year. Price increases were also observed for 8,052 seasoning items, 6,175 alcoholic beverages, 2,270 confectionery items, 1,533 dairy products, and 865 raw materials.

For January through April 2024, price hikes are scheduled for 1,596 food items, primarily for raw materials such as olive oil and sesame products, seasonings like broth products and ketchup, and frozen foods.

However, the rate of price increases is significantly slowing, down approximately 80% from the same period in 2023.

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