Several Japanese food and beverage manufacturers are raising prices or reducing product volumes starting Oct. 1, 2024 [1].
These adjustments reflect a broader trend of inflation in the Japanese consumer market. As companies struggle with rising operational costs, the burden is shifting to consumers through higher shelf prices and "shrinkflation" — the practice of reducing a product's size while maintaining its price.
Kirin Beverage will increase prices for 166 items [1]. The price hikes range from five% to a maximum of 18% [1]. Specifically, the company's bottled "Nama-cha" green tea will see a 10% increase, bringing the new price to 220 yen excluding tax [1].
Aohata is raising the price of 13 items in its "Marugoto Kajitsu" jam series by approximately 16% [1]. The company said the rising costs of raw materials, packaging, energy, and labor are primary drivers. Aohata also said that the current situation in the Middle East has impacted costs [1].
Kabaya Foods is taking a different approach by reducing the volume of its almond chocolate. The product's weight will drop from 109g to 95g [2], though the retail price will remain the same. The company said this move is a response to increasing costs.
The companies are facing a variety of economic pressures. While some reports suggest a matcha boom has increased demand and driven up green tea prices, the manufacturers primarily attribute the changes to the broader surge in raw materials, and energy costs [1].
“Kirin Beverage will increase prices for 166 items”
The simultaneous use of direct price increases and volume reduction suggests that Japanese food manufacturers are exhausted their internal cost-cutting options. By employing both strategies, companies attempt to protect profit margins against volatile global commodity prices and labor shortages without alienating consumers who are sensitive to price jumps.
