Confectionery 2001

  1. Confectionery used to refer mainly to the cheap sweets bought by children. Now, however, confectionery comes in all kinds of varieties, and is often eaten more by adults than by children (especially products said to be good for one's health). Children are busy with cram school, lessons and studying, and so have little time to eat sweets nowadays. Rather than giving their children sweets, therefore, parents stock up on McDonald's hamburgers and instant noodles for them to snack on instead when they go to cram school.

  2. Because of this and also the falling birth rate and aging of the population, demand for confectionary is gradually falling every year. Demand has now shrunk for seven years running, and domestic output of confectionery too has fallen, as the following figures show.

    1998 1999 2000
    2,457 2,434 2,403
    U nit: billion yen

  3. Confectionery is broadly categorized as follows:

    Chewing gum (sweetened/unsweetened)
    Candy (candy, drops, gummy, marshmallows, etc.)
    Caramel (including nougat)
    Other sugar confectionery (other than candy and caramel)
    Chocolate confectionery
    Bread and dry biscuits
    Biscuits (including cookies, sweetened/unsweetened)
    Bakery products (gingerbread, similar products, waffles, wafers, cakes, snacks, etc.)
    Rice confectionery (rice cakes, rice crackers, etc.)

  4. Japanese exports in 2000 came to \16.57 billion, representing 0.69% of total output. Imports into Japan stood at \37.10 billion, equivalent to only 1.5% of total output.

  5. Exports in 2000 broken down by type and destination were as follows. (Total value: \16.57 billion)

    Chewing gum Candy Other sugar confectionery
    Hong Kong 163,563 Taiwan 806,276 Hong Kong 538,300
    Canada 120,455 Hong Kong 770,732 Taiwan 267,187
    U.S.A. 96,774 U.S.A. 494,023 U.S.A. 235,478
    Portugal 94,976 South Korea 270,116 South Korea 90,446
    Saudi Arabia 76,947 Singapore 194,548 Singapore 43,364
    Others 324,506 Others 275,038 Others 73,543
    Total 877,221 Total 2,810,733 Total 1,248,318


    Chocolate confectionery Bread and dry biscuits Biscuits (sweetened)
    Taiwan 668,287 Hong Kong 7,608 Hong Kong 245,260
    Hong Kong 636,770 U.S.A 4,935 Taiwan 191,380
    Philippines 102,579 Taiwan 4,392 U.S.A. 98,628
    U.S.A. 85,210 France 2,779 Singapore 66,976
    South Korea 76,172 South Korea 1,263 Guam 31,298
    Singapore 68,374 -- -- -- --
    Others 62,959 Others 3,067 Others 111,791
    Total 1,700,351 Total 24,044 Total 745,333


    Bakery products
    (sweetened/unsweetened)
    Rice confectionery
    Taiwan 2,171,880 U.S.A. 943,905
    U.S.A. 1,703,204 Netherlands 362,147
    Hong Kong 1,345,035 Taiwan 251,018
    Singapore 334,341 New Zealand 178,552
    Saudi Arabia 302,376 Hong Kong 114,013
    Others 727,044 Others 726,965
    Total 6,583,880 Total 2,576,600

    Unit: 1,000 yen
    Source: Japan Trade Monthly

  6. Imports in 2000 broken down by type and source were as follows. (Total value: \37.10 billion).

    Chewing gum Candy Caramel
    U.S.A. 226,093 China 1,505,982 Taiwan 46,630
    South Korea 120,287 Netherlands 1,474,949 Netherlands 12,733
    Canada 34,409 Spain 1,185,165 U.S.A. 7,872
    Philippines 33,748 U.S.A. 276,614 France 6,735
    Thailand 14,717 Austria 237,308 Argentina 1,667
    Others 70,495 Others 721,782 Others 3,350
    Total 499,749 Total 5,401,800 Total 78,987


    Other sugar confectionery Chocolate confectionery Bread and dry biscuits
    Belgium 177,844 U.S.A. 3,159,239 U.S.A. 599,288
    U.S.A. 156,179 Belgium 1,695,900 Switzerland 107,125
    Vietnam 155,913 Australia 1,497,245 Canada 103,732
    China 136,537 Italy 1,389,177 Taiwan 103,105
    Germany 99,958 Austria 1,214,042 Germany 89,502
    Others 506,805 Others 6,447,135 Others 301,173
    Total 1,233,236 Total 15,402,738 Total 1,303,925


    Biscuits (sweetened) Bakery products
    (sweetened/unsweetened)
    Rice confectionery
    U.S.A. 819,090 China 2,121,569 Thailand 2,150,260
    Denmark 592,921 U.S.A. 1,111,250 Taiwan 109,136
    Singapore 529,276 Thailand 1,037,850 China 89,166
    France 337,328 Vietnam 356,492 Vietnam 13,121
    U.K. 330,610 Canada 317,027 South Korea 8,930
    Others 1,604,376 Others 1,641,877 Others 1,339
    Total 4,213,601 Total 6,586,065 Total 2,371,952

    Unit: 1,000 yen
    Source: Japan Trade Monthly

  7. Japanese confectionery makers have advanced to Hong Kong, China, South Korea, Vietnam, Taiwan, Thailand, the Philippines, Malaysia, Indonesia and Singapore in Asia, and the United States, Netherlands, France and United Kingdom in Europe and North America. Those that have set up production operations in Asia, however, have generally been re-exporting back to Japan, while those that have established themselves in Europe and North America have more commonly done to sell their output in their host markets. Goods produced overseas used to be imported loose, but in recent years most confectionery has been imported already packaged (in Japanese).

  8. Confectionery retail prices in Japan are coming down due to the downward trend in prices at supermarkets, underselling among importers, and the depressed state of consumption. The confectionery sold in hundred-yen stores is ordered in large batches, and made exclusively by small and medium-sized Japanese manufacturers.

  9. Confectionery imports are subject to rigorous inspections under the Food Hygiene Law, and compliance with standards on the use and labeling of food additives in particular is required.

  10. There is a large market for imported confectionery sold for gifts, such as chocolates for St. Valentine's Day. The majority of chewing gum features popular characters or is sold with novelty goods. Candy is also often sold tinned for gifts.

  11. Confectionery most commonly reaches the consumer from the manufacturer via wholesaler and retailer (such as a supermarket and convenience store). However, confectionery is often sent directly from makers to retailers, such as supermarkets and convenience stores, with the slips sent on to retailers from the wholesaler. Some wholesalers also create their own brands, which they then sell to retailers. There are around five chains in Osaka specializing in cheap sweets. Foreign companies with operations in Japan, such as France's Carrefour, buy directly from the manufacturer.

  12. Companies take out product liability insurance together through their associations. Sometimes there arise product liability claims due to the eggs in cream puffs going off or insects being found.

  13. The decline in consumption appears to have bottomed out, and is unlikely to fall further. A succession of new products is being launched, though there have recently been few hit products that have lasted long. In the future, demand for "healthy" confectionery is continuing to grow. Although imports currently account for only 1.5% of the market, this figure is expected to rise, with imports from China expected to grow particularly strongly.

(Produced with the cooperation of The Confectionery Foods Shimbun.)




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