Cheese category insight: Key new product is Meiji & Saint-Moret Cream Cheese Dessert Innovation.

The Japanese cheese market has been steadily growing in recent years, with consumption increasing by approximately 30% over the past decade. In 2019, total consumption reached a record high of 356,000 tons and has since remained above 350,000 tons. Per capita cheese consumption in Japan also rose to 2.8 kg in 2021 (compared to 2.2 kg ten years ago). However, this remains low compared to Denmark (29 kg), France (27 kg), the U.S. (17 kg), and even South Korea (3.7 kg), indicating significant potential for further growth.

Since 2021, rising costs of imported raw materials and energy, along with the domestic milk price revision in 2023, have led manufacturers to implement price adjustments and portion size reductions for products such as sliced cheese and 6P cheese. In 2022, while household cheese spending remained at 100% of the previous year’s level, volume-based sales declined to 92%. Price adjustments in key categories, including shredded and sliced cheese, contributed to a decline in purchase volumes. Sales of Camembert and cottage cheese also declined, potentially due to a drop in wine consumption.

Camembert remains a leading natural cheese in the Japanese market, with growing consumer interest in pairing it with wine and its perceived health benefits. Fresh cheese categories such as mozzarella and cottage cheese have also seen rapid expansion, with market sizes increasing by 1.4 times over the past five years and nearly doubling over the past decade. Mozzarella, in particular, has benefited from rising demand for Caprese salads and increased domestic production.

Manufacturers are actively developing new natural cheese products and strengthening promotional efforts to differentiate themselves and further energize the market. Additionally, improvements in the quality of domestic artisanal cheeses and growing international recognition are contributing to the industry’s growth. Moving forward, a comprehensive market strategy that includes revising dairy trade policies and strengthening the domestic dairy farming base will be essential for sustainable development.

The breakdown of natural cheese and processed cheese consumption in Japan, based on the latest data, is as follows:

This data shows that natural cheese accounts for approximately 60% of total consumption, while processed cheese accounts for about 40%. In recent years, the share of natural cheese has shown a gradual upward trend.

In the Japanese market, processed cheese is deeply rooted in daily life due to its affordability, while baby cheese is valued for its convenience, mild taste, and long shelf life, as seen in 6P packs. In contrast, overseas, where cheese culture is well-established and natural cheese is mainstream, processed cheese is often perceived as “artificial” and “low quality” and is not highly regarded.

Cheese is a fermented food, and its nutritional benefits are well recognized in many countries. In Japan, however, other fermented foods such as natto, pickles, and miso soup are more integrated into daily life, and the culture of consuming cheese as a fermented food is not yet widespread.

Dairy products in Japan are subject to high tariffs, with a general rate of around 30% when there is no tariff quota. Cheese, in particular, has long been subject to high tariffs to protect domestic dairy farming. This is one reason why natural cheese is often reserved for special occasions, such as luxury appetizers or entertaining guests. However, consumers are becoming more aware of natural cheese rather than highly processed cheese with inactive lactic acid bacteria. Specialty supermarkets like Seijo Ishii primarily stock natural cheese, and general supermarkets such as Aeon are expanding their natural cheese sections.

Despite this trend, processed cheese remains the mainstream choice in daily use in Japan, a trend further strengthened by the growing popularity of protein-rich foods. Japanese manufacturers have spent decades developing ways to make cheese more accessible while keeping costs down. Through innovations such as turning cheese into snacks or desserts, they have uniquely evolved this category.

The processed cheese market in Japan offers many insights for the global industry.

The pioneer of dessert cheese in the Japanese market is widely recognized as the “Cheese Dessert” series by Rokko Butter Co., Ltd. under the Q・B・B brand. Launched around 2005, the “Q・B・B Cheese Dessert” series features cheese with sweet flavors, resembling a dessert, and is characterized by bite-sized portion packaging. Rokko Butter aimed to introduce a new way of enjoying cheese beyond traditional uses as a snack or cooking ingredient, proposing a “dessert-like” experience. Initially, the series gained attention with cream cheese infused with sweet flavors such as fruit and vanilla. The “Cheese Dessert” series holds approximately 75% to 78% of the Japanese dessert cheese market share, leading the segment.

The “Baby Cheese” series under the same Q・B・B brand, categorized as snack cheese, also holds the top share in Japan’s snack cheese and processed cheese markets.

Japan’s dessert category is experiencing a transformation, driven by evolving consumer preferences for premium, indulgent treats. A major catalyst for this shift is the collaboration between Meiji and Savencia Fromage & Dairy, two key players in the dairy industry. Their partnership aims to leverage the growing demand for dessert cheese, a segment blending the richness of cheese with the indulgence of desserts.

Price including tax in major supermarkets is around 430JPY.

Source: https://www.maff.go.jp/j/chikusan/gyunyu/lin/attach/pdf/index-82.pdf?utm_source=chatgpt.com