THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF
AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
Voluntary Report – Voluntary - Public Distribution Date: February 03,2021
Report Number: JA2021-0015
Report Name: Pet Food Market in Japan
Country: Japan
Post: Osaka ATO
Report Category: Market Development Reports
Prepared By: Yumi Baba
Approved By: Jeffrey Zimmerman
Report Highlights:
The United States is the second largest exporter of pet food to Japan with 16.4 percent of the market led
by Thailand (33%) and followed by France (16%). In FY2019, imports equaled 260,000 metric tons
(MT) and represented 44 percent of total domestic pet food consumption (593,000 MT) in Japan. Japan
has had four consecutive years of increased overall value of pet food sales reaching over $3 billion in
FY2019. High value-added products are responsible, such as, health targeted premium and super
premium foods, medical and therapeutic functional foods, and a variety of treats and supplements for
pets. Due to COVID-19, the number of new pet owners year-to-date through October 2020 for both dogs
and cats increased compared to 2019. As of October 2020, the total number of dogs and cats in Japan
was approximately 18.13 million, which surpasses the Japanese citizen population of those under 15
years-old estimated at 15.3 million.
INDEX:
I. Executive Summary
II. Market Overview
A) Domesticated Dogs and Cats in Japan
B) Trends in Pets
C) Pet Food Market
1) Market Size
2) Product Type
3) Major Manufacturer
III. Market Opportunities
A) Pet Food Import
B) Key Market Issues and Trends
C) Distribution System
IV. Market Access
A) Regulation
B) Tariffs
V. Key Contacts and Information
A) Post Contacts
B) USDA Japan Websites
C) USDA Animal and Plant Health Inspection Service
D) Regulations & Standards
E) Other Information Sources
I. Executive Summary
The United States is the second largest exporter of pet food to Japan with 16.4 percent of the market
led by Thailand (33%) and followed by France (16%). In FY2019, imports equaled 260,000 metric
tons and accounted for 44 percent of domestic pet food consumption in Japan.
The Japanese pet food market volume of sales in FY2019 remained steady at around 593,000 metric
tons. Same period value of sales reached over $3 billion or a 3.5% fiscal year increase marking the
fourth consecutive year for increased value of sales.
As of October 2020, the total number of dogs and cats in Japan was approximately 18.13 million,
which surpasses the Japanese citizen population of those under 15 years-old estimated at 15.3
million.
The overall number of pets in Japan is exhibiting a declining trend due to the decrease in the dog
population exceeding the increase in the cat population.
Due to COVID-19, the number of new pet owners year-to-date through October 2020 for both dogs
and cats increased compared to 2019.
The industry experienced steady pet food sales volumes with growth in sales value through
increased purchases of health conscious premium and super premium foods, medical and
therapeutic functional foods, and a variety of treats and supplements for pets.
The most common distribution channel for pet food products in Japan is through wholesalers
specialized in pet food and products. The main consumer outlets include home centers, discount
stores, supermarkets, drug stores and pet shops. E-commerce is also supported by consumers and its
share has been growing steadily.
Exporters and businesses must comply with the Government of Japan’s Pet Food Safety Law.
Note:
This report focuses on pet foods for dogs and cats sold at retail outlets (H.S. 2309.10)
The exchange rate US $1 = ¥105 yen is used in this report unless otherwise mentioned.
The Japanese fiscal year starts in April and ends in March, so FY 2020 runs from April 2019 to
March 2020.
II. Market Overview
A) Domesticated Dogs and Cats in Japan
As of October 2020, Japan had approximately 18.13 million dogs (8.5 million) and cats (9.6 million)
domesticated according to the annual survey conducted by Japan Pet Food Association (JPFA). The
number of cats exceeded the number of dogs in 2017 for the first time since the JPFA survey begin in
1993. However, the overall number of pets in Japan is exhibiting a declining trend due to the decrease in
the dog population exceeding the increase in the cat population. By comparison, the number of pets in
Japan is larger than the population of Japanese citizens under 15 years-old, which total 15.33 million (as
of April 2019, Ministry of Internal Affairs & Communication).
Number of Dogs and Cat in Japan
(unit: thousand)
Number of Domesticated Dogs and Cats in Japan
(unit: thousand)
Source: Japan Pet Food Association
5,000
7,000
9,000
11,000
13,000
15,000
17,000
19,000
21,000
23,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
No. of Dogs No. of Cats No. of Dogs & Cats
B) Trends in Pets
In recent years, the trend among the Japanese pet population could be described in four key words; 1)
Indoor 2) Small 3) Aging and 4) Sicknesses related to obesity and life-style. These identified trends are
based on the following sources: iPet Insurance Co., Ltd and Anicom Group Holdings Inc. and the Japan
Pet Food Association.
1) Indoor Breeding
Keeping pets indoors is a norm compared to the past in Japan. The JPFA survey shows that 84.7
percent of dogs and 90.4 percent of cats are kept indoors as of the year 2020. Pets kept indoors
are less likely to become sick and tend to live longer. This is also a driving factor in the aging
and obesity of pets.
2) Smaller & Miniature Size Pedigree Dogs vs. Majority of Crossbred Cats
In 2020, the following four dog breeds were ranked highest for ownership in Japan; Toy Poodle
(13.1%), Chihuahua (12.8%), Shiba (11.8%) and Minitour Dachshund (11.3%). Although the
rankings have changed, the top four dog breeds have remained the same since 2016. Crossbred
dogs accounted for only 10.1 percent. On the other hand, the vast majority of pet cats are
crossbred with 75.5 percent, followed by American Shorthair (4.8%) and Scottish Fold (3.4%).
3) Aging
In 2020, the average life expectancy of a dogs and cats was 14.48 years and 15.54, respectively.
The average life expectancy of dogs was only 4.4 years in 1980s and although there are some
differences depending on the breed, it has tripled in the last 30 years. The average life
expectancy of the indoor cats was said to be longer than that of the external cats because
external cats are more likely to be injured and/or contract disease.
With the spread of vaccines in recent decade, infectious diseases such as parvovirus and
distemper virus have decreased for dogs. The ease of prevention also contributes to the
reduction of infectious diseases. The number of filariasis infections (heartworm), which
accounted for the majority of deaths before 1980, has been greatly reduced through easily
administered oral and topical medications. Improved pet care practices through high-quality
nutritious foods, advanced pet medical care by veterinarians (including sterilization) and raising
indoors have all contributed to the increased life expectancy of pets in Japan.
Average Life Expectancy of Dogs & Cats in Japan
(unit: year-old)
(Source: Japan Pet Food Association)
4) Sickness related to Obesity and Life-style
There is an increase pets suffering from obesity and life-style related illnesses as a result of
increased age, indoor habitation, and overnutrition. Common life-style related illnesses include
arthritis, heart disease, bladder and urinary tract disease, chronic kidney disease, liver disease,
diabetes, high blood pressure, spine disease, among others.
C) Pet Food Market
1) Market Size
The Japanese pet food market by volume in FY2019 was steady and estimated at around
593,000 metric tons (MT), (99.8% vs. FY2018). Same period value of sales reached over $3
billion (105.6% vs FY2018) marking the fourth consecutive year in increased sales value.
The less than one percent year-on-year decline in the pet food market volume is attributed to the
decrease in the total number of pets coupled with smaller-framed dog breeds gaining popularity.
The industry observes a shift toward increased consumer spending on a variety of premium and
super-premium high-quality pet foods as well as specialized healthy and therapeutic pet foods
labeled as sickness prevention, allergen-free, vitamins/supplements fortified, gluten-free,
carbohydrate and protein specified and more.
14.50
14.39
14.19
14.29
14.44
14.48
15.43
15.09
15.33
15.32
15.03
15.54
13.50
14.00
14.50
15.00
15.50
16.00
2015 2016 2017 2018 2019 2020
Average life-span of dogs Average life-span of cats
Pet Market by Volume FY2014 to FY 2019
(unit: metric ton)
Source: Japan Pet Food Association
Total Pet Food Market in Value FY 2014 – FY 2019
(unit: US$ million, $1=105 yen)
Source: Japan Pet Food Association, modified to U.S. dollar by ATO Osaka
307,150 307,151
294,844
281,083
271,212
262,360
260,436
265,490
273,766
285,790
296,533
303,527
29,284
28,987
28,811
29,397
25,980
26,912
0
100,000
200,000
300,000
400,000
500,000
600,000
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
For Dogs For Cats For Other Pets
$2,656.99
$2,529.11
$2,720.07
$2,739.81
$2,879.65
$3,041.50
$2,500.00
$2,600.00
$2,700.00
$2,800.00
$2,900.00
$3,000.00
$3,100.00
2014 2015 2016 2017 2018 2019
2) Pet Food Categories
All pet foods - dry, semi-moist, soft-dry, wet ettc. - have been heat-treated to improve digestion
and absorption of raw materials and to prevent microbial contamination. This is contrast to
animal feed that may or may not be heated treated.
Pet foods are divided into four main categories: General nutrition food, Snacks, Therapeutic
food, and Other purpose foods. Pet food as a staple food is called "Sogo Eiyoshoku” (translated
as “general nutrition food”) and is manufactured for necessary nutrient intake in conjunction
with a supply of water. Although snacks are not necessary as a nutrient supplement, it is a pet
food intended to be given in a limited amount for pet discipline, exercise, and reward.
There are growing variety of therapeutic foods for pets. Veterinarians may recommend specific
nutritional diets when treating diseases in dogs and cats. These foods assist the treatment of
disease by adjusting the amount and ratio of nutritional components in the food accordingly as
recommended under veterinarian guidance. Products examples are; kidney support, urolithiasis,
diabetic, dermatological and allergy disorder, weight control and more.
“Other purpose foods” serve a specific purpose such as adjustments to nutrition profile,
supplementing calories, enhancing palatability, among other uses and are provided in
conjunction with pet food or ingredients.
Dog and cat foods are categorized into the following five types based on its water content:
Pet Food Product Type in Japan
Type
Definition
Dry
Water content of about 10% or less. The raw materials are crushed and
compounded, foamed and molded by an extruder (heated and pressured), then dried
and cooled. The heating temperature in the extruder reaches 235-275F (115-
135℃). Depending on the raw material, it goes up to as high as 320F (160℃).
Soft-dry
Water content of 25-35%. Manufactured by an extruder. It is foamed like a dry
food and cooled like a semi-moist food without being dried. Moistening agents are
often used. Packed using high barrier packaging materials and often uses oxygen
scavengers.
Semi-moist
Water content of 25-35%. Manufactured by an extruder but not foamed.
Moistening agents are often used. Packed using high barrier packaging materials
and often uses oxygen scavengers.
Wet
Water content of about 75% and undergoes a sterilization process to maintain
quality. The temperature and time for sterilization differ depending on the size of
the can and contents. To contain, usually steel or aluminum cans are used as well as
aluminum trays and retort pouches.
Other (snack)
Other than above, including biscuit, gum, jerky, dry meat and bone products. As a
general rule, caution is given to limit the amount within 20% of the daily energy
requirement in order to maintain proper nutrition.
Source: Japan Pet Food Association
Dog Food Market by Product Type in FY 2019
Dog Food Market by Product Type (in volume):
In FY2019, dry food still dominated the dog food market with 67.3 percent market share in volume of
sales after a 5.1 percent decrease when compared to FY2018. Similarly, both soft-dry and semi-moist
volume of sales decreased to 3.2 percent and 1.0 percent, respectively, while wet-type food increased to
4.1 percent compared to FY2018. In total volume, Japan’s FY2019 dog food market decreased 3.3
percent compared to FY2018.
Dog Food Market by Product Types in FY 2019 (volume)
Dog Food Market by Food Types in FY2019
Dry Soft Dry Semi-moist Wet Other Total
in volume 176,609 21,570 5,104 34,017 25,061 262,361
(unit: metric ton)
Source: Japan Pet Food Association
Dog Food Market by Product Type (in value):
In FY2019, overall pet food sales value in Japan increased 3.5 percent compared to FY2018. All types
of dog food, except “other type,” increased their value of sales in FY2019 compared to FY2018. Both
dry and wet food increased 5.6 percent and 8.1 percent respectively.
Dry
67.3%
Soft-dry
8.2%
Semi-moist
1.9%
Wet
13.0%
Other
9.6%
Dry Soft-dry Semi-moist Wet Other
Dog Food Market by Food Types in FY2019 (value)
Dog Food Market by Food Types in FY2019
Dry Soft Dry Semi-moist Wet Other Total
in value ($) $718 $64 $27 $207 $339 $1,355
(unit: million, $1=105 yen)
Source: Japan Pet Food Association, modified to U.S$ by ATO Osaka
Cat Food Market by Product Types in FY 2019
Cat Food Market by Food Types (in volume):
In FY2019, the cat food market was dominated by dry food with 63.9 percent market share and this
category increased 2.1 percent compared to FY2018. Semi-moist cat food marked a significant increase
at 365 percent compared to FY2018 together with wet food (2.1%) and other food (32.3%), which led
total cat food volumes to increase 2.4 percent in FY2019.
53.0%
4.7%
2.0%
15.2%
25.0%
Dry Soft Dry Semi-moist Wet Other
Cat Food Market by Food Types in FY2019 (volume)
Cat Food Market by Food Types in FY2019
Dry Soft-dry Semi-moist Wet Other Total
in volume 194,078 3 33 106,463 2,951 303,528
(unit: ton)
Source: Japan Pet Food Association
Cat Food Market by Food Types (in value):
In FY2019, the overall total value of cat food sales in Japan increased 7.9 percent compared to FY2018.
All types of cat food except soft-dry food (decreased by 33.3%) increased their value in FY2019
compared to FY2018. As a newer market category, the FY2019 increase in value of semi-moist cat food
jumped 9,795 percent as well as both wet (8.6%) and other food (10.4%).
Cat Food Market by Food Types in FY2019 (value)
Dry
63.9%
Soft-dry
0.0%
Semi-
moist
0.0%
Wet
35.1%
Other
1.0%
Dry Soft-dry Semi-moist Wet Other
50.8%
0.0%
0.1%
45.7%
3.4%
Dry Soft-dry Semi-moist Wet Other
Cat Food Market by Food Types in FY2019
Dry Soft-dry Semi-moist Wet Other Total
in value ($) $806.9 $0.2 $0.9 $724.9 $54.0 $1,586.9
(unit: million$, $1=105 yen)
Source: Japan Pet Food Association, modified to U.S. dollar by ATO Osaka
3) Major Manufacturers and Name Brands
The Japan pet food manufacturing sector has the presence of long-standing and large foreign-
affiliated companies such as Mars Japan, Nestlé Japan and Hill’s Holgate Japan. However,
domestic manufacturing companies are also growing through attracting pet owners that have a
preference for nationally produced products. Japanese pet food manufacturers are also growing as a
result of increased international marketing and sales. Japan’s Nisshin Pet Food announced their
merger with PETLINE in December 2019, which is expected to advance PETLINE within the top
five pet food manufactures in Japan. With the steady increase in cats as pets, there has been an
increase in cat food manufacturers to provide increased cat food options. Store shelves are now built
more around cat products and sales of domestic cat food companies. For example, domestic Inaba
Pet Food is a growing cat food company with increasing sales of very popular cat treat “Ciao
Chuuru” and easy-to-serve cup wet cat food.
The major pet food manufacturers and their product brands are listed in the following table:
Table: Major Pet Food Manufacturers in Japan
Manufactures
Major Pet Food Brands
Dog Foods
Cat Foods
Mars Japan Ltd.
Pedigree, Cesar, Nutro,
IAMS, Greenies
Kalkan, Sheba, KiteCat
Unicharm Corporation
(Pet Care Division)
Gran Deli, Best Balance,
Aiken-Genki
Neko-Genki, Gin-no-spoon,
Mitsuboshi Gourmet
Royal Canin Japon Inc.
(under Mars Group)
Royal Canin
Royal Canin
Nestlé Japan (Pet Division)
Purina One, Purina, Pro Plan
Purina One, Mon Petit,
Friskies
Inaba Pet Food Co., Ltd
Zeitaku, Toromi
Kin-no-dashi, Ciao
Hill's - Kolgate Japan Ltd.
Science Diet, Prescription
Science Diet
Diet
Nisshin Pet Food
Run, JP Style
Carat, JP Style
Doggy Man H.A. Co., Ltd.
Saya
Seko-Saya
Nihon Pet Food
Vita Wan, Lacine Dog,
Combo-dog, Beauty Pro Dog
Mio, Lacine Cat, Combo-cat,
Beauty Pro Cat
PETLINE
Medycoat, Professional
Balance
Cannet, Luna, Medyfas
Reference: ATO Osaka modified the table from PEDGE adding information from company URLs.
III. Market Opportunities
(A) Pet Food Import
The pet food volume of sales in Japan reached 592,799 metric tons in FY2019, of which imports
accounted for 263,494 metric tons or 44.4 percent of the total volume. Japanese domestic share
of the pet food market has gradually increased over the past several years to again reach over 50
percent levels last seen in 2009 and pre-1994. This is attributed to the general Japanese consumer
preference to purchase domestically produced products under a perceived "food safety and
security" notion associated with made in Japan products.
Domestic v.s. Imported Pet Food in Volume (FY2014 to FY2019)
(unit: metric ton)
307,605
281,989
267,664
266,408
269,183
263,494
289,205
289,205
319,669
329,757
324,543
329,304
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
Imports Domestic
Domestically produced pet foods account for over 50 percent of all pet food types in 2019 in volume and
the industry expects this trend to continue. The table below shows both imported and domestically
produced pet foods in volume by pet type (dog, cat and other pets).
Imported vs. Domestic Pet Food - Volume in FY2019 (by Pet Type)
(unit: metric ton)
for dogs share for cats share for other pets share
Domestic 134,317 51.2% 170,524 56.2% 24,463 90.9%
Imported 128,043 48.8% 133,002 43.8% 2,449 9.1%
Total 262,360 100.0% 303,526 100.0% 26,912 100%
Source: Japan Pet Food Association
Total value for imported pet food exceeds domestically produced product indicating strong brand and
consumer awareness. Even declining pet ownership and smaller breed preference, the pet food industry
foresees continued growth in value through increased supply of premium and super premium foods,
health & medical/therapeutic functional foods, variety of treats and supplements for pets.
Imported vs. Domestic Pet Food - Value (FY2014 to 2019)
(unit: $million, $1=105)
FY2019
FY2018 FY2017 FY2016 FY2015 FY2014
Imported $1,680 $1,622 $1,535 $1,562 $1,442 $1,632
Domestic $1,362 $1,258 $1,204 $1,158 $1,087 $1,025
Total $3,042 $2,880 $2,740 $2,720 $2,529 $2,657
vs previous year 105.6% 105.1% 100.7% 107.6% 95.2% 104.0%
Source: Japan Pet Food Association
The top three exporting countries – Thailand, United States, France - to the Japanese pet food market
accounted for over 65 percent of the total imports in FY2019. Thailand became top exporting country
for Japan’s pet food market mainly due to the increasing in the number of pet cats in Japan and their
comparative advantage in low-cost seafood-based ingredients for cat foods. The table below lists
exporting countries to the Japanese pet food market. These three exporting countries collectively.
Exporting Countries to the Japanese Pet Food Market in FY2019
(unit: metric ton / %)
No. Country for dog for cat for pet fish
for small
animals
for birds for other pets Total (MT)
Market Share
(%)
vs FY2018
(%)
1 Thailand 16,165 70,746 0 70 0 20 87,000 33.0% 99.2%
2 U.S.A. 24,527 18,015 0 635 143 0 43,320 16.4% 104.10%
3 France 27,704 14,417 0 14 0 0 42,135 16.0% 93.7%
4 Australia 10,291 10,098 0 83 0 0 20,472 7.8% 88.8%
5 China 14,147 2,054 123 116 18 612 17,070 6.5% 118.5%
6 Netherland 11,695 2,247 0 192 0 0 14,134 5.4% 96.9%
7 Czech Republic 8,038 3,403 0 0 0 0 11,441 4.3% 90.4%
8 Korea 839 9,082 2 1 2 0 9,926 3.8% 203.8%
9 Germany 5,116 0 0 0 0 0 5,116 1.9% 54.9%
10 Canada 3,158 1,451 0 0 4 7 4,621 1.8% 57.6%
11 Austria 2,299 1,291 0 0 0 0 3,590 1.4% 224.2%
12 Poland 3,279 0 0 0 0 0 3,279 1.2% 67.9%
13 New Zealand 602 51 0 0 0 0 653 0.2% 107.1%
14 Vietnam 144 142 0 1 0 44 331 0.1% 44.5%
15 Taiwan 5 0 110 0 0 3 118 0.04% 84.9%
16 Indonesia 0 0 0 64 0 0 64 0.02% 1280.0%
17 Others* 34 5 0 183 2 0 224 0.09% 240.9%
Total 128,043 133,002 235 1,359 169 686 263,494 100.0%
% vs Total 48.6% 50.5% 0% 1% 0% 0% 100%
*Others includes: Nepal, Mexico, Spain, Hungury and other countries. Source: Japan Pet Food Association
(B) Key Market Issues and Trends
1. COVID Impact
As a result of COVID, on April 7, 2020 the Government of Japan (GOJ) declared a state of
emergency and asked people to stay home. During these stressful days, the demand for pets,
especially kittens and puppies increased significantly. According to several industry press
reports, many pet shops revealed that they were unable to maintain pets in inventory on
display due to record sales between May and July 2020. In Japan, the average cost per kitten
is between US$2000 to US$3000 and per puppy is over US$4000 to US$8000. Usually the
summer represents a low sales season with a greater number of kitten available on discount,
but this past year the price for pets did not decrease. The distribution of GOJ’s special fixed-
amount benefit of 100,000 yen (about $920) per person, seems to have spurred an increase in
pet purchases. The majority in the industry see this as a temporary phenomenon but
anticipate additional increases in sales of pet related products. This change has already been
confirmed across varieties of pet foods with increased sales of higher-priced wet and semi-
moist types. In addition, a few industry press reports showed a 10 to 15 percent increase in
the sales of pet foods during Japan’s state of emergency as a large number of pet owners
stockpiled pet foods together with their groceries.
2. Progressing Product Segmentation and Diversification
Today it is very common for pet foods to be categorized by age, breed, and size. Moreover,
pet owners recognize their pets as part of the family nucleus and seek to provide “tastier” and
“healthier” pet food for their pet. As a result, Japan’s pet food categories have become more
specialized than they were five to ten years ago and exhibit wider consumer choice to attend
to multiple pet health or preventative care needs. Therefore, sales of traditional large-bagged
more economical pet foods have declined in favor of new value-added products to meet
diversified consumer demands that also have higher per unit value.
3. Growing Premium Pet Food Sector
The premium pet food market has been growing steadily at the rate of few percentage points
annually for the past decade. According to Fuji Keizai’s June 3, 2020 press release on pet
related product research, the sales of premium pet foods increased by 3.7 percent in 2019
compared to 2018 and reached a market value of 72.4 billion yen (about US$687.5 million,
$1=105.54yen). Some industry experts anticipate continued growth to surpass sales valued at
100 billion yen (about $951million, $1=105.2 yen) in only a few years.
As premium pet food market is steadily growing, market competition has become fiercer. If
one does not have an innovative product with targeted attributes developed before entering
the market, it will be very hard to obtain success in Japanese market. There are already a
variety of premium pet food brands from major to small companies and developing new and
loyal customers is challenging. In Japan, competition is further intensified due limited shelf
space at the majority of retailers who have extremely small store footprints.
Premium Pet foods could be divided into two approaches: “health” and “epicure”. Products
focused on “health” possess excellent nutritional components and care for health problems
and/or symptoms (i.e. therapeutic foods) particular to the pet’s needs such as food allergies,
urolithiasis, obesity, kidney diseases, gastroenteropathy. Products focusing “epicure” having
carefully selected ingredients and high palatability. These products more commonly are
associated with cats that tend to exhibit quicker disaffection with their foods with owners
prone to switch offerings more often. .
4. Launching Super Premium Pet Food
To differentiate from premium pet food and highlighting further added value, some pet food
manufacturers have started to launch so called “Super Premium” pet food. Some examples of
super premium pet foods are; organic approved and human grade ingredients, gluten-free,
grain-free, low-fat and high-protein, low-temperature processed, air-dried, frozen, and
custom tailor-made with home delivery system and more.
5. Internet and Smartphone
The pet industry has long been centered on an off-line business model. However, pet industry
businesses are fast building D2C (Direct to Consumer) approaches of manufacturers to
consumers that include product specific promotion apps to build customer loyalty. This is in
tandem with conventional marketing means of TV commercial, press, magazine and other
publications approaches. Emergence of internet-based malls and shops include niche markets
and e-commercialization within the pet industry.
(C) Distribution System
1. Distribution Channels
The most common distribution channel for pet foods in Japan is through importers,
wholesalers and in some cases secondary wholesalers to retailers. In the case of Japanese
manufacturers that own production facilities abroad, products are imported directly inside the
company or through their subsidiaries and then distributed to the retailers through
wholesalers as described above. Although there are cases in which retailers buy directly from
importers, these cases are limited.
2. Major Wholesalers
Wholesalers who handle pet food and related supplies are roughly divided into three types: 1)
pet specialty wholesalers, 2) food related wholesalers and 3) daily sundries wholesalers. The
top three pet specialty wholesalers have a combined estimated 70 percent market share and
include: Japell Co., Ltd. (Aichi-based, annual sales of about U.S.$1.2 billion as of March
2020), Echo Trading Co. Ltd. (Hyogo-based, US$775 million annualized as of February
2020) and Lovely Pet Trading Co. (Osaka-based, US$227 million annualized as of June
2020). For food related wholesalers, two major companies Mitsui Foods Co. Ltd. and
Ryoshoku Petcare (a part of Mitsubishi Shokuhin Co. Ltd.) utilize their own internal and
logistical networks to provide rapid comprehensive services nationwide. Overall, the sector
exhibits oligopolist characteristics further advanced since 2013 when Echo Trading Co., Ltd.
concluded a capital and business alliance agreement the third largest specialized trading
company Kokubu Group Corporation. As a result, small- to medium-sized wholesalers face
constraints to expand services.
3. Retailers
There are six main retail outlets for pet food and related products: a) home center and
discount store b) e-commerce c) supermarket d) pet shop e) drug store and f) convenience
stores.
a. Home Center and Discount Store
Home centers and discount stores are the largest retail channels for pet related supplies
including pet foods as they stock a large amount of discount pet food products and often
as a loss leader. Home centers and discount stores possess a larger store footprint and
24/7 or extended business hours compared to other retail outlets. However, market share
is gradually decreasing as e-commerce sales increase.
b. E-commerce
An abundant product lineup, 24/7 around-the-clock service and convenient home delivery
upon purchasing are strongly supported by consumers. E-commerce market share has
grown steadily and is expected to continue. Amazon is the predominate market leader.
Other retailers have also launched and strengthen their e-commerce and digitalization as
well as teaming up with other companies such as distributors and telecommunication
companies to compete against Amazon in this space.
c. Supermarket
Supermarkets meet the regular needs of customers who purchase pet food while shopping
for their groceries. Most supermarkets do not have large store footprints and offer limited
products. On the other hand, General Merchandize Stores (GMS) of Aeon and Ito Yokado
have large store footprints and offer a large selection of products including their own
private brand pet products.
d. Pet Shop
Pet shops are characterized by having a wide range of products, especially a variety of
premium foods coupled with store staff expertise. As more and more pet owners seek
quality pet food for their pet(s), pet shops continue to receive a steady number of
customers. Customers tend to buy pet foods and pet-related products when they purchase
pet(s) at pet shops and usually rely on advice from the store staff and continue coming
back for routine shopping and use of other store services, i.e. pet hotel, pet trimming, pet
insurance and more.
e. Drug Store
The number of drug stores has expanded to provide, in part, products targeting the
increase in number of working women. These products include pet related products,
especially for cat(s) and small dog(s) along with their usual line of cosmetics and
everyday sundries. Almost all major drug stores (Tsuruha, Welcia, Cosmos,
Matsumotokiyoshi, Sugi Drug) co-host internet shopping sites where much more variety
of products, including pet-related products, are offered beyond what is available in store.
f. Convenience Store
Although convenience stores are not a major outlet for pet-related products with their
extremely limited sales space, there are over 52,000 stores among three major
convenience store brands; Seven-Eleven (20,987 stores as of September 2020),
FamilyMart (16,634 stores as of August 2020) and Lawson (14,444 stores as of February
2020) that carry pet-related products in Japan. Convenience stores see value in carrying
pet related products as customers who purchase pet related products tend to spend more
compared to regular customers.
IV. Market Access
A. Regulation on Safety of Pet Foods
The Pet Food Safety Law came into force on June 1, 2009 in order to ensure the safety of pet
food. Prior to this law, there was no legislation to regulate the production and distribution of pet
food in the Japanese market, except that some pet foods with medical claims were subject to the
Pharmaceutical Affairs Law. The 2007 incident with adulterated pet foods from China that were
contaminated with melamine prompted enhanced regulatory action and oversight by the
Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF) and the Ministry of
Environment (MOE).
The Pet Food Safety Law defines the responsibilities of pet food manufacturers, importers,
wholesalers and retailers as well as the scope of government authority to regulate the market. It
also outlines specifications and standards for pet food products to be distributed within the
market. The law defines the minimum criteria for labeling, while a voluntary labeling code is
being maintained as an industry-wide self-imposed requirement in addition to the law.
For more details on Pet Food Safety Law, please visit below sites;
Information for manufactures, importers, and distributers of pet foods
1. For Securing Safety of Pet Food (PDF : 407KB)
2. Notification and Record-Keeping Manual Based on the Pet Food Safety Act (PDF :
708KB)
3. In Order to Supply Safe Pet Foods (PDF : 872KB)
4. Are your pet food products properly labeled with their COUNTRY OF
ORIGIN ?(PDF : 129KB)
5. Manual for the Manufacturing of Safe Pet Foods (PDF : 305KB)
6. Pet Food Sanitation Management Manual (PDF : 2,752KB)
7. Use of wild animal meat in pet food production (PDF : 206KB)
8. Pet Food Safety Act: Labeling Check Sheet (PDF : 180KB)
Related Laws and Regulations
Document List on the Pet Food Safety Law (Food and Agricultural Materials Inspection
Center)
1. Summary of Law for Ensuring the Safety of Pet Food
2. List of Specifications and Standards of Pet Food
3. Act on Ensuring the Safety of Pet Food
4. Government Ordinance Pursuant to Act on Ensuring the Safety of Pet Food
5. Ministerial Ordinance for Enforcement of the Pet Food Safety Act
6. Ministerial Ordinance on Specifications and Standards of Pet Food
7. Concerning the Enforcement of Act on Ensuring the Safety of Pet Food
Batch Download
B. Tariffs
Please refer to below link of Japan Customs for tariff rates on H.S. code 2309.10 (010 to
099) and 2309.90 (110 to 2999):
https://www.customs.go.jp/english/tariff/2020_4/data/e_23.htm
V. Key Contacts and Further Information
A. Post Contacts
For further information, please contact the U.S. Agricultural Trade Offices (ATO) in Japan at the
following addresses:
ATO Office in Tokyo ATO Office in Osaka
U.S. Embassy, Tokyo U.S. Consulate General, Osaka-Kobe
1-10-15, Akasaka, Minato-ku 2-11-5, Nishi-tenma, Kita-ku
Tokyo, 107-8420 Osaka, 530-8543
Tel: +81-3-3505-5115 Tel: +81-6-6315-5904
Fax: +81-3-3582-6429 Fax: +81-6-6315-5906
B. USDA Japan Websites
http://www.usdajapan.org/ (in English)
http://www.usdajapan.org/ja/ (in Japanese)
C. USDA Animal and Plant Health Inspection Service
Japan - pet food, chews, and treats (animal-origin)
https://www.aphis.usda.gov/aphis/ourfocus/animalhealth/export/iregs-for-animal-product-
exports/sa_international_regulations/sa_products_japan/ct_pet-food-chews-and-treats-animal-
origin
D. Related Japanese Ministry Websites
Ministry of Agriculture, Forestry and Fisheries (MAFF)
https://www.maff.go.jp/e/index.html (in English)
Ministry of Environment (MOE)
https://www.env.go.jp/en/index.html (in English)
Ministry of Health, Labor, Welfare (MHLW)
https://www.mhlw.go.jp/english/ (in English)
Food and Agriculture Material Inspection Center (FAMIC)
http://www.famic.go.jp/english/ (in English)
Japan Customs
https://www.customs.go.jp/english/index.htm (in English)
Animal Quarantine Service (Bringing Animal Products into Japan)
https://www.maff.go.jp/aqs/english/product/import.html (in English)
Designated establishment lists for some pet food or pet food materials
U.S. powdered poultry meat for pet food production
https://www.maff.go.jp/aqs/tetuzuki/product/attach/pdf/index-6.pdf
U.S. pork-meat-derived for pet food production
https://www.maff.go.jp/aqs/tetuzuki/product/attach/pdf/index-9.pdf
E. Other Information Sources
Japan Pet Food Association
https://petfood.or.jp/English/message/index.html (in English)
https://petfood.or.jp/index.html (in Japanese)
Japan Pet Food Fair Trade Association
https://pffta.org/soshiki/greeting.html (in Japanese only)
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