Since last summer, the ice cream industry in Japan has been booming, thanks to the hot temperatures and record-breaking exports to Taiwan and other markets.
According to a report by Nikkei on June 19, the Japan Ice Cream Association stated that in the 2023 fiscal year, ice cream sales increased by 10%, reaching 608.2 billion yen (approximately 3.85 billion USD at current exchange rates), marking a historical high for the fourth consecutive year.
In the summer of 2023, the temperature in Japan was 1.76 degrees Celsius higher than the average, setting a new historical record. The Japan Meteorological Agency predicts that this summer will also be hotter than average, and food producers are gearing up for another busy season.
On Monday, a woman in her twenties shopping at the Inageya chain supermarket in Tokyo’s Nerima Ward said, “When I see new flavors or textures of ice cream, I want to try them.”
Candy manufacturer Morinaga reported that they faced almost sold-out situations last summer. The company stated that the demand for their products exceeded the predicted levels, which were calculated based on data provided by the Japan Meteorological Agency. Since last autumn, the company has been maintaining production at unusually high levels.
Last year, Lotte delayed the release of new products by a month to October to mitigate the impact of strong demand on the production of their flagship new products. The company expects demand to remain high this year as well. Ohayo Dairy Products is also planning to increase its inventory.
Hot climates often stimulate the demand for cold treats. Lotte found that in July 2023, sales of their bagged popsicle, Coolish, increased by 20% compared to the same period last year. Akagi Nyugyo’s popular GariGarikun popsicle series saw a 20% growth in sales. However, snacks with rich creamy flavors did not perform well.
In Japan, Häagen-Dazs saw a sales growth of only 2% to 51.7 billion yen in 2023, lagging behind the overall market growth. Yoichi Onuki, President of Morinaga, stated that their products, including Pino chocolate ice cream, will strengthen their frozen snack lineup. They also launched new products in April.
Frozen snacks from Japan are popular in other parts of Asia. Data from the Ministry of Finance shows that export sales grew by 16% in the 2023 fiscal year, reaching a record high of 7.8 billion yen. In terms of quantity, exports increased by 10% to nearly 9,689 tons – almost three times the around 3,300 tons in the 2014 fiscal year. The export volume in 2023 exceeded 10,000 tons for the first time.
Taiwan is the largest overseas market, accounting for nearly one-third of the total market, with a 30% increase in shipments in the 2023 fiscal year compared to the previous year. Mainland China is the third largest market, with a growth of nearly 20%.
The Ice Cream Association report stated that two rounds of price increases in 2023 also drove up shipment volumes.
Toshihiro Nagahama, Chief Economist at Dai-ichi Life Research Institute, said, “As consumers struggle to keep up with inflation, they are beginning to be more frugal, which could lead to a decrease in demand in Japan.” “The question is to what extent manufacturers can tap into overseas markets.”
Imuraya Confectionery’s signature products include red bean frozen foods, and the company is seeking localization in Malaysia by obtaining halal certification for its factories.
A director from the Ice Cream Trade Group commented, “Considering the costs of export and local marketing, making a profit is not easy.”
However, Imuraya remains optimistic about the future and launched a mochi ice cream product flavored with durian in June.