THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENTPOLICY

Voluntary - Public
Date: 10/30/2018
GAIN Report Number: JA8706

Japan
Post: Osaka ATO

Japanese Fresh Fruit Market Overview 2018
Report Categories:
Fresh Fruit
Market Development Reports

Approved By:
Jeff Zimmerman, Director of ATO Osaka
Prepared By:
Chika Motomura, marketing specialist at ATO Osaka
Report Highlights:
The Japanese fresh fruit market is estimated at around 4.71 million MT demanded as of 2015.
Currently, Japan imports one third of fresh fruit demanded, approximately 1.6 million MT in 2017, led
by banana, pineapple, kiwi, orange, and grape fruit. The United States ranks second (after thePhilippines) in value of fresh fruit exports to Japan at US$360 million in 2017. The United States is theleading supplier of orange, lemon, grape and cherry. The Japanese fresh fruit sector is highly
competitive with other countries making some inroads to the market. Opportunities for U.S. fresh fruit
exports to Japan are expected to increase in the near- to medium-term due to a decrease in Japan’s
domestic production resulting from aging fruit farmers.

I.

Domestic Fruit Production
A. Fruit Production in Japan

Japan is located in the temperate zone and it produces a wide variety of fruits suitable to the climate ofeach region nationwide. Japan produced 3.63 million MT* of fresh fruit in 2015, based on the latest datacompiled by the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF). Fruit production was led
by apple with 22.4%, followed by mandarin with 21.5%, watermelon with 9.4%, and Japanese pear with
6.8%.

Fresh Furit Production 2015 in volume
apple

16.2%

22.4%

3.4%

watermelon
Japanese pear

4.4%

persimmon

4.4%

grape

5.0%
6.7%

mandarin

strawberry

6.8%

9.4%

21.5%

melon
peach
othersFruit
apple
mandarinwatermelon
Japanese pearpersimmon
grape
strawberry
melon
peach
otherstotal

Production

Share

811,500
777,800
339,800
247,300
242,000
180,500
158,700
158,000
121,900
588,000
3,625,500

22.4%
21.5%
9.4%
6.8%
6.7%
5.0%
4.4%
4.4%
3.4%
16.2%
100.0%(unit: metric ton)

Source: MAFF
* MAFF defines “fruit” as fruit produced from perennial trees and plants. Therefore, MAFF’s data of fruit production exclude
strawberry, melon and watermelon. ATO Osaka calculated the total domestic production of fresh fruit as 3.63 million MT byadding the production of these three products (656,500 t) to the MAFF’s “fruit production data” (2,969,000 t).

The production of fresh fruits in value terms was estimated at US$10.42 billion** (1,134 billion yen) in2016. This represents only 12% of the value of total Japanese agricultural production, estimated at
US$84.56 billion (9,203 billion yen) in the same year. The production of fresh fruits in value was led bymandarin (15.5%), followed by strawberry (15.4%), apple (13.0%), and grape (10.7%).
** US$1=Y108.84, the average exchange rate of 2016 was used for calculations. (Source: Statistics Bureau, Ministry of Internal
Affairs and Communications)Fresh Fruit Production 2016 in value
14.7%

15.5%

3.7%

mandarin

Fruitstrawberry

mandarin
strawberry
apple
grape
Japanese pear
melon
watermelon
peachpersimmon
cherryothers
total

apple
grape

4.0%

Japanese pear

15.4%

4.8%
5.2%

melon
watermelon
peachpersimmon

5.9%
6.9%

cherry13.0%

others10.7%
Source: MAFF

value(billion yen)
176.1
174.9
147.7
121.8
78.6
66.9
58.8
54.7
45.8
42.3
166.3
1,133.9

share
15.5%
15.4%
13.0%
10.7%
6.9%
5.9%
5.2%
4.8%
4.0%
3.7%
14.7%
100.0%

B. Fruit Production Trend
The fruit production in Japan has been in decline since its peak in the 1970s. This decline was a result ofJapan’s industrial structure transformation that occurred in the latter half of the 20th century, during which
the primary industry, as a whole, lost its share of the Japanese economy to the secondary and the tertiary
service industries.

Fruit Production in Japan (unit: metric ton)
800
700
600
500
400
300
200
100
0

1975 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016

mandarinapple

others

Source: MAFF / The data exclude strawberry, melon, and watermelon.

The decline in the fresh fruit production slowed in 2000, with small ups and downs year on year afterwards.
The decline in recent years has been caused by a decrease in the number of fruit farmers, due to the aging
farmer population.

The Number of Fruit Farmers(unit: thousand household)

300
250
200
150
100
50
0

2005

2010

2015

Source: MAFF

The number of fruit farmer households decreased from 242,344 in 2010 to 210,714 in 2015, which
represents a 13% decrease over 5 years. The fruit farmer households led by those in their sixties and overseventy accounted for 31% and 39% of the total fruit farmers in Japan in 2010. In just 5 years, thiscombined 70% jumped up even further to 77% of fruit farmer households in 2015.

289(0.1%)

Fruit Farmer Households by Age Group (unit: household)2,971(1.2%)

73,908(30.5%)

17,031(7.0%)

53,287(22.0%)

2010
363(0.1%)

2,667(1.2%)

2015

35,023(16.6%)
094,858(39.1%)
10,123(4.8%)

50,000under 29

Source: MAFF

73,485(34.9%)
89,053(42.3%)
100,000

30-39

40-49

150,000
50-59

60-69

200,000
over 70

250,000

II. Fresh Fruit Exports & Imports
A. Japan - Fresh Fruit Exports
Japanese fruits are known for their high quality. They are quite popular, in particular, among Asian
countries. As part of its efforts to support domestic fruit production, the Government of Japan (GOJ) has
been encouraging the export of domestically produced fruits with various programs. However, the export
volume is still limited. Fresh fruit exports from Japan were estimated at 37,419 MT in 2017. Taiwan is thelargest buyer with 60% of Japan’s fresh fruit exports destined for the country, followed by Hong Kong with31%. The major fruits exported from Japan were apple (76.8%), Japanese pear (5.0%), peach (4.6%) andmandarin (3.9%).

B. Japan - Fresh Fruit Imports
Fresh fruit import to Japan was reported at 1.62 million MT in 2017. The annual fresh fruit import to Japan
ranged from 1.55 million MT to 1.65 million MT for the last five years. The leading imported product wasbanana with over 60.9% share, followed by pineapple with 9.7%, kiwi with 5.7%, orange with 5.6% andgrapefruit with 4.8% in 2017. The major suppliers of fresh fruit to Japan were led by the Philippines with57.9%, the United States with 9.4%, Ecuador with 9.1% and Mexico with 6.7%.

Fresh Fruit Import to Japan(unit: metorin ton)

2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Global Trade Atlas

Fresh Fruit Import to Japan in volume
in 2017 Bananas
3.3%

1.9%

3.7%

1.6%

Pineapples

2.8%

Kiwi Fruit
Oranges

4.8%
5.6%
5.7%
9.7%
60.9%

2017
Imported Products

volume
(MT)

share
(%)

yoy
growthBanana985,634

60.9%

3.06

Pineapple

156,992

9.7%

9.65

Kiwi Fruit

92,981

5.7%

-0.23

Orange90,593

5.6%-10.78Grapefruit

Grapefruit

78,069

4.8%

-6.43

Avocados

Avocado60,635

3.7%-17.97

Lemons And Limes

Lemons And Lime

53,0993.3%

3.04

GrapesGrape31,319

1.9%

-6.99

Melon and Papaya

25,893

1.6%

-9.44

44,427
1,619,642

2.8%
100.0%

n/a
0.92

Melons and Papayas
OthersOthers
Total

Source: Global Trade Atlas

In 2017, total imports of fresh fruit to Japan was valued at US$ 2.14 billion. The leading exporters to Japan
were the Philippines with 37.7%, followed by the United States (16.8%), New Zealand (14.4%), and Mexico(12.6%). The main fruits imported to Japan were banana with 39.8%, followed by kiwi (14.7%), avocado(9.6%) and pineapple (5.9%).

Fresh Fruit import to Japan in value in2017
BananasImported products

OrangesBananaKiwi Fruit
AvocadoPineapple
Orange5.8%

Lemons And Limes

Lemons And Lime

5.9%

Grapefruit

Grapefruit
Grape
Cherry
Other
Total

2.2%
4.2%

39.8%

8.2%

Avocados

4.3%

Pineapples

5.5%

9.6%

Kiwi Fruit

Grapes14.7%

Cherries
Others

Source: Global Trade Atlas

value (US$)

share
(%)

yoy
growth
(%)

850,409,535
313,481,414
205,402,038
125,635,194
123,270,867
116,566,532
91,619,354
89,304,445
47,013,817
175,199,548
2,137,902,744

39.8%
14.7%
9.6%
5.9%
5.8%
5.5%
4.3%
4.2%
2.2%
8.2%
100.0%

-8.55
6.93
-3.42
-1.64
-5.35
7.23
-12.26
-9.16
2.43
n/a
-3.65

The Philippines is the dominant supplier of both banana and pineapple to Japan with over 80% and 90%
import share, respectively, both in volume and value terms. The United States is the leading supplier oforange, lemon, and grape and has the dominant position in cherry supply with over 95% of the importshare both in volume and value. New Zealand has gained the predominant position as a supplier of kiwi
with over 90% of import share (in volume and value). Mexico is the primary supplier of avocado withover 90% import share (in volume and value) and the leading supplier of melon with 70% of the market
share (in volume).

import value(US$)

Country

Import volume(MT)

Philippines

937,858

57.9%

Philippines

806,219,494

37.7%

United States

151,835

9.4%

United States

358,451,388

16.8%

Ecuador

147,078

9.1%

New Zealand308,666,586

14.4%

Mexico108,141

6.7%

Mexico269,222,390

12.6%

121,547,565

5.7%Country

share (%)

share (%)

New Zealand

91,135

5.6%

EcuadorAustralia

50,671

9.1%

Australia

82,618,576

3.9%South Africa

42,263

2.6%

Chile

62,895,452

2.9%

Chile

33,0402.0%South Africa

41,373,340

1.9%

Other

57,621-2.4%

others86,907,953

4.1%

Total

1,619,642

100.0%

Total

2,137,902,744

100.0%

Source: Global Trade Atlas

Japan – Main Imported Fruits
 Banana
Banana has been the dominant item among the imported fruits. The leading supplier to Japan is thePhilippines with a dominant share of over 80% of the value followed by Ecuador with 15% in 2017. Banana
has been a popular fruit among Japanese consumers. It is easy-to-peel, sweet, and relatively low-priced,
therefore it stays as the top favored imported fruit in Japan.
 Pineapple
Pineapple remains popular and is enjoyed by many Japanese consumers. The Philippines is the dominant
supplier to Japan with over 90% share in volume terms, followed by Costa Rica with less than 5%.
Domestic production is very limited as it is only occurs in Okinawa, a southern island of Japan.

 KiwiKiwi has been rapidly increasing its popularity. Imports used to be valued at less than US$100 million in
1990s and then started to grow rapidly, tripling to over US$300 million in 2017. Zespri from New Zealandconducted a massive promotional campaign that included TV advertisement as well as sampling/tastingat retail stores to succeed in making kiwi a popular fruit among Japanese consumers.
 Orange
Orange imports have been in decline since peaking at over 190,000 MT in mid-1990s. This is mainly due
to the advent of a wide range of new citrus varieties to the market that have successfully competed forthe tastes of the Japanese consumer.
The United States is the leading supplier of orange to Japan with over 50% import share in volume andvalue terms in 2017 but is ceding market share to Australia and South Africa. U.S. oranges do not compete
directly against those from the Southern Hemisphere. Still, the timing to switch from U.S. products to
those from the South Hemisphere in the Japanese market has been moved up in favor for the latter. Also,oranges from the Southern Hemisphere mainly arrive during Japan’s domestic off-season, whereas the
U.S. competes against domestic Japanese in-season citrus varieties.
 Grapefruit
Grapefruit was the second major imported fresh fruit into the Japanese market during early 2000s
reaching over 280,000 MT. Nonetheless, grapefruit imports started to decline in 2005 and recorded only
78,069 MT in 2017.
The consumption of grapefruit has declined in Japan due to sweet fruit preference among younger
consumers coupled with the reported incompatibility of grapefruit with hypertension medicine, which has
led the majority of older Japanese consumers to refrain from consuming grapefruits.
The United States used to be the largest supplier of grapefruit to Japan over the years but it yielded its
number one positon in volume to South African for the first time in 2017, due to a short supply caused by
the damage from Hurricane Irma and greening disease.
 LemonLemon has a steady demand in the Japanese market. Domestic production is limited, recording only
11,500 MT in MT2016/2017. The United States is the leading supplier to Japan with about 60% of theimport market share, followed by Chile.
 Table Grape
Imported table grapes have been getting popular among Japanese consumers. Crispy and sweet varieties
edible with skin have been well accepted as a new type of grapes, different from Japanese original grapes.

The United States is the leading supplier to Japan with 35.3% import share followed by Chile and Australia
with 33.4% and 27.2% in volume terms. As the U.S. enjoys the higher unit price, it has 40.4% import sharein value terms while Australia and Chile presented only 29.7% and 25.1% respectively. Still, Australia andChile, who enjoy advantage of the seasonal difference, have been expanding their share in the Japanesemarket.
 Cherry
The United States possesses the dominant share of over 98% of imported cherry market, followed far
behind by Chile and Australia with less than 1%. Still, the import volume used to be over 10,000 MT early2010s but it dropped to the level of 5,000 MT lately.
III. Fresh Fruit Market and Trends
A. Fresh Fruit Market In JapanThe Japanese fresh fruit market is estimated at 4.71 million MT*** as of 2015, which was 3.1% down fromthe previous year. It has been in a downward trend over the years.
The Fresh fruit market contraction is considered to be caused by several factors. First, the Japanese
population is declining. It recorded a decline for the first time in 2005 and then it has been continuously
decreasing gradually since 2010 due to its low birth rate. The Japanese food market in general is in a
downward trend with the lower population and the fresh fruit market is no exception.
Secondly, when we look at the fresh fruit consumption in detail, we see that fresh fruit consumption perperson is decreasing as well. The chart below shows that fresh fruit purchase per person has continuously
declined over the years.
Annual Fresh Fruit Purchase per Person: (unit: kg)
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0

12.2

11.6

11.2

1.0
4.6 0.7
1.9
4.8

6.9

1.2
5.4 0.6
1.7
4.6

6.3

5.6

6.4
1.6
4.4
4.8

1995

1998

2003

2008
banana1.0
4.4 0.9
1.8
5.5

mandarin

apple

Japanese pear

10.2
0.8
0.5

10.2

9.7

9.5

1.1
4.4
3.8

6.0
1.3
4.3
3.5

2013

2015

2016

orangegrapefruit

others

6.0
1.3
4.4
4.0

0.6
0.6

0.4
6.0 0.4

0.3
0.6

Source: GOJ, Ministry of Internal Affairs and Communications*** According to MAFF, about 88% of the domestic fruit production goes to fresh fruit market and the remaining 12% is for theuse for processed products. ATO Osaka used this rate and calculated the market size as follows: 3.63 million MT (the total fruit
production) x 88% + 1.56 million MT (fresh fruit import) – 0.04 million MT (fresh fruit export) = 4.71 million MT

In addition, when we look at daily fruit intake per person by age group, the data show that all the agegroups showed a decline over the 10-year period, from the 2003-2005 average to the 2013-2015
average, with only one exception, the over-seventy age group. We can also see that those who consume
the fruit most tend to be elderly people in their sixties and over seventy and those in their twenties,
thirties and forties consume the least.
Daily Fruit Intake by Age group: (unit: g)
200
150
100

122
120
108
95

120
86

132
108
79

78
63

89
66
57

163
159 162
146

96

63

50
0

All age

1-6

7-14

15-19 20-29 30-39 40-49 50-59 60-69 over 70

2003-2005 avr.

2013-2015 avr.

Source: GOJ, Ministry of Health, labor and WelfareThis general downward trend of fresh fruit consumption per person is partially due to intensifiedcompetition in the snack and dessert sector. Fruit is considered as dessert or snack among Japanese
consumers. This tendency has been accelerated further by changes in taste preference among Japanese
consumers, particularly among younger generations. More recently, Japanese prefer sweet taste to sour
taste. Consumers also prefer easy-to-peel or easy-to-prepare options. Therefore, they tend to opt forsweet and easy-to-peel fruits such as bananas among fruit options, or go for other non-fruit dessert andsnack options.
B. Industry Efforts to Promote Fresh Fruit Demand
In order to sustain and expand fresh fruit consumption in Japan, the fruit industry
has been making extensive efforts in a variety of ways. Research has been
conducted to create new varieties of fruits with attributes that can appeal toconsumers’ preferences including being sweet, easy-to-peel or east-to-prepare,and healthy etc.
Brokers and distributors are also making efforts to introduce prepared and cut
fruits at retail stores as well as even setting up vending machines for cut fruit in
the metropolitan areas in order to offer fruit as easy-to-prepare snack option.

IV. Distribution channels
Distribution channel for fresh fruit goes basically through importers, wholesale markets, and retailers
before reaching out to consumers. However, the distribution channel has been changing over the years.
These days, direct purchase by retailers to skip intermediaries is also occurring.
The retail channels to consumers have been traditionally through supermarkets followed by small
independent fresh produce retailers, cooperatives and department stores. Supermarkets remain thedominant venue and have even expanded their share over fresh produce retailers. Other small channels
including convenience stores, discount stores, and on-line stores are gradually increasing their presence
over the years.
Fresh Fruit Distribution Channel
0.5% 3.0% 0.7%

0.9%

1999

20.0%

53.0%

2004

19.0%

53.0%

12.0%
3.0%
2.0%
0.6%

10.0%
2.0%

2009

16.0%

58.0%

9.0%
1.0% 3.0% 2.0%

11.0%
3.0%

2014

14.0%

60.0%

0%

10%

20%

30%

fresh produce store
department store
on-line store

40%

0.4% 3.0%

8.0%
1.0%

7.0%
50%

60%

supermarket
coopothers

70%

80%

14.0%
2.0%

10.0%
90%

100%

convenience store
discount store

Source: GOJ, Ministry of Internal Affairs and Communications

V. Opportunities for American suppliers
A. SWOT analysis
The United States enjoys the position of the import market leader for some varieties of fruits in theJapanese market. However, its position has been weakening over the years amid severe competition
from other suppliers. Here is a SWOT analysis of the U.S. position in the Japanese market.
Strengths:••

Established position in the Japanese market
Predominant position of some specific fruits•

Phytosanitary requirement for U.S. fruits coming into Japan

Weaknesses:





•

Direct competition against domestic fruits due to the same productionseason••Decrease in domestic fruit production
Demand for quality fruits in the Japanese market•

Strong competitors such as Mexico, Australia, New Zealand, Chile etc.

Opportunities:

Threats:

B. Recommendation
The current fresh fruit market in Japan is getting highly competitive due to a decline both in the size of
the Japanese population as well as in fruit consumption per capita. The fresh fruit also needs to competewith other options within the dessert and snack sector. While other countries make inroads into theJapanese fresh fruit market backed by tariff advantage through Economic Partnership Agreements withJapan, the Unites States is facing even tougher competition.
One the other hand, as the domestic production of fresh fruit is expected to decline further down theroad, an increase in the demand for imported fruits is expected, offering great opportunities to U.S.
fresh fruit suppliers.
Under this situation, the key is to promote U.S. products as high-quality products and differentiate themfrom ones from the other exporting countries by educating Japanese trade and consumers. Japanese
consumers’ demand for fruits of high quality is considered to remain strong.
U.S. cooperators and trade associations have been working actively to differentiate U.S. fruits fromthose from other countries by advocating the safety and high-quality of U.S. fruits. ATO Japan supports
these efforts and is available to assist in exploring new opportunities for U.S. fruits in the Japanesemarket.

VI. Contacts and information sources:
A. Agricultural Trade Offices (ATO) in Tokyo and Osaka, and Office of Agriculture Affairs(OAA) stand ready to assist you in your efforts to bring products to market in Japan.
ATO Tokyo
U.S. Embassy, Japan
atotokyo@fas.usda.gov
tel +81 3.3224.5115
fax +81 3.3582.6429

ATO Osaka
U.S. Consulate General Osaka-Kobeatoosaka@fas.usda.gov
tel +81 6.6315.5904
fax +81 6.6315.5906

Office of Agricultural Affairs
U.S. Embassy, Japanagtokyo@fas.usda.gov
tel +81 3.3224.5102
fax +81 3.3589.0793
B. U.S. fresh fruit Cooperator representatives in Japan
Organization Name

Telephone/Fax
URL

Address

California Blueberry Commission

Tel: 81(0)3-3584-7019
Fax: 81(0)3-3582-5076
http://calblueberry.org/

Residence Viscountess, Suite 310
1-11-36 Akasaka
Minato-ku, Tokyo 107-0052

Florida Department of Citrus

Tel: 81(0)3-3584-7019
Fax: 81(0)3-3582-5076
www.floridajuice.com

Residence Viscountess, Suite 310
1-11-36 Akasaka
Minato-ku, Tokyo 107-0052

Hawaii Papaya Industry Association

Tel: 81(0)467-81-3921
Fax: 81(0)467-23-6987
www.hawaiipapaya.com/

Otani Bldg. #12.
2-11-11 Komachi
Kamakura, Kanagawa 248-0006

Tel: 81(0)3-3584-7019
Fax: 81(0)3-3582-5076
www.watermelon.org/

Residence Viscountess, Suite 310
1-11-36 Akasaka
Minato-ku Tokyo 107-0052

Tel: 81(0)3-4578-9389
Fax: 81(0)50-3488-4172
www.nwcherries.com

9F UCF Win Aoyama Bldg.
2-2-15 Minami Aoyama, Minato-ku, Tokyo
107-0062

Tel: 81(0)3-5269-2301
Fax: 81(0)3-5269-2305
www.pomegranates.jp/

Harajuku OM Bldg.
3-13-7 Sendagaya,
Shinjuku-ku, Tokyo 151-0051

Tel: 81(0)3-3523-0717
Fax: 81(0)3-3523-0710
www.sunkist.com

New River Tower, 8F
1-6-11, Shinkawa
Chuo-ku, Tokyo 104-0033

Tel: 81(0)3-5574-7890
Fax: 81(0)3-5574-7887
http://www.usdrybeans.com/

33F ARK Mori Bldg.
1-12-32 Akasaka,
Minato-kku, Tokyo 107-6033

National Watermelon Promotion
Board
Northwest Cherry Growers

Pomegranate Council Public Relations
Japan Office
Sunkist Pacific Ltd.

U.S. Highbush Blueberry Council

c. USDA Japan website:
There are a wide variety of reports on Japanese market and regulations available at the following
website, including commodity reports such as “Stone Fruit Annual,” “Citrus Annual,” and othersector reports such as “Exporter Guide,” “Japan Retail Food,” “Food Service Sector Report,” “TheJapanese Processed Fruit Market-Opportunities and Challenges” and “FAIRS report.”
For Reports on the Japanese markets: http://www.usdajapan.org/reports/
d. Japan External Trade Organization (JETRO) website:
Information on the Japanese Vegetables, Fruits and Processed products market report:
https://www.jetro.go.jp/en/reports/market.html (Market Reports)