A display case of ice cream products at a supermarket in Yotsukaido, Chiba Prefecture.
15:55 JST, July 12, 2024
When it comes to Japanese ice cream, there is a huge demand for it overseas. Companies here make huge profits from it, because they have to meet the demand as quickly as possible.
Exports of Japanese ice cream, shaved ice and other summer treats reached a record high in 2023, amid growing popularity among foreign tourists visiting the country during times of scorching temperatures.
A display case of ice cream products at a supermarket in Yotsukaido, Chiba Prefecture.
With Asian countries leading the way, exports of ice cream and ice cream products reached a record high of ¥7.9 billion in 2023, up 23.5% from the previous year, according to trade statistics from the Ministry of Finance.
In terms of volume, exports increased by 19.8% to 10,138 tonnes, of which more than 60% went to the three main destinations of Taiwan, Hong Kong and China.
According to manufacturers and other sources, visitors to Japan appear to be having an impact on export growth.
There is a wide variety of products available in terms of taste and form, and those with Japanese flavors such as azuki bean and matcha green tea are especially popular among tourists. They then search for such flavors after returning home, which prompts local retailers to increase imports by stocking the products.
The products are selling well despite the sharp price increases. Meiji Co.’s “Essel Super Cup,” an ice cream cup that comes in a variety of flavors, is exported to Taiwan and other countries and costs twice as much as in Japan.
This surcharge is a result of the need to equip ships with refrigeration equipment, which entails higher transport and other costs.
A Meiji spokesperson said Japanese products are selling well despite being “locally categorized as premium ice cream.”
As the domestic market is expected to peak due to the shrinking population, manufacturers are likely to develop sales channels as overseas demand continues to increase.
Summer trends
On July 7, temperatures in Shizuoka City’s Suruga Ward soared to 40 C, the first time that level has been reached in the country this year. According to major supermarket chain Lawson Inc., ice cream sales were about 50 percent higher in the two-day period of July 6-7 than the previous week.
It has been widely believed in the industry that if temperatures are too high, cream products with strong flavors will sell much less than ice cream products such as popsicles. But in recent years, record high temperatures combined with the COVID-19 pandemic have caused people to stay indoors more, which is reportedly helping cream-based products do well even in the summer
In response to this trend, Morinaga Milk Industry Co. promotes its ice cream products in June and July and its popsicles in August and September.
The Japan Ice Cream Association announced that sales for fiscal 2023 reached ¥608.2 billion, up 9.9% from the previous year. The combination of the warmest year on record and price increases resulted in a fourth consecutive year of record sales.
One reason for the growing market is that manufacturers are becoming more accurate in predicting demand. Since 2017, Morinaga & Co. has based its production schedule on weather forecast data from the Japan Weather Association.
The aim is to avoid shortages due to sudden fluctuations in demand. “Demand usually increases when temperatures rise rapidly, such as at the end of the rainy season,” a company spokesperson said. “It’s important to get the timing right.”
