Japan, where italian agri-food exports are booming

Ten months after the entry into force of the Japan EU Free Trade Agreement  (JEFTA), European exports are performing well towards the rising sun. The driving force was agri-food exports (+47.4%), followed by means of transport (+16%) and textiles, clothing, leather and accessories (+8.4%). Since the beginning of the year, over 1 billion euros worth goods have been sold to Japan, recording a 61% growth on a trend basis.

The figures are not particularly surprising, considering that the free trade agreement has eliminated more than 90% of entry duties and almost all the technical-regulatory barriers (first and foremost those on food safety, brand defence and automotive sector) that limited their growth potential. The Food & Beverage sector is also one of the most benefited from the agreement, thanks to the elimination of Japanese duties on various products and the recognition of over two hundred European geographical indications (PDOs) defined by Member States, 45 of which are Italian.

Made in Italy Agri-food: oil, wine and cheeses on the rise

Although it represents only 2% of total Italian agri-food exports, the Japanese market is certainly of considerable importance, especially if we consider the highly strategic value of some product categories and the constantly growing trend recorded in recent years. Made in Italy exports are showing a strong acceleration both in growth and in the gain of Japanese market shares. It means an advance of more than 17 percentage points (equivalent to more than 3.6 billion euros) and a sales volume – over the year – which should reach 6.7 billion by the end of 2019, according to the Sace Simest report.

The Italian food basket exported to Japan is composed of distinctive quality products, placed in the high price range: at the top of the ranking we find excellences such as EVO oil, wines, cheeses and DOP and IGP quality products, a segment in which Italy plays a leading role in Europe not only for the number of awards obtained but, above all, for its ability to make it a real driving force for the economy and territories.

EVO OIL. The Japanese market represents 7% of Italian olive oil exports, with peaks of 17% for some particularly fine oils from southern Italy. Its placement reflects both Japanese consumer base’s strong appreciation of quality and its excellent perception of Made in Italy. And, despite the fact that Spain has for some years now overtaken Italy as the major supplier of EVO oil in Japan (from 37% to 49% of the market from 2013 to 2018, to the detriment of Italy, which has gone from 53% to 42%), Japanese consumers recognise the Italian leadership in the production of top quality EVO oil.

WINE. According to the recent analysis of Nomisma’s Wine Monitor Observatory, Japan is among the top ten markets in world wine demand.

In 2019 imports are expected to increase by 16% reaching the value of almost 1.65 billion euros. Still taking the lion’s share is France, which has about 55% market share and almost 950 million in revenue. But Italy is accelerating: for our producers the expected growth is 17% (with a record peak of 26.4% for sparkling wine). Italian wine confirms its position as Japanese consumers’ second-favourite, despite the rapid rise of wine made in the U.S.A. (which takes third place) and the maintenance of the Chilean one, fourth in order of liking.

CHEESE. Italian cheeses sold in Japan are also booming, with growth in volume of 21.3% in the first half of this year, compared to the same period in 2018, reaching over 5.8 million kg. It was reported by Assolatte, which highlighted the country of the rising sun as one of the key markets for the international expansion of Italian dairy products. And even if mozzarella plays the leading role being at the same time the Italian cheese most exported to Japan (1.7 million kg) and the top performer of the last year (+86.4%), Assolatte also reports the very positive trends of Grana Padano and Parmigiano Reggiano (+12.6%), Gorgonzola (+9.0%) and grated cheese(+7%).

Itameshi: Japanese consumer is crazy for Italian cuisine

Although traditional Japanese culinary culture remains a strong part of national identity, Japanese consumers in recent years have begun to appreciate a diverse and international range of food products, including Italian Food (or Itameshi) dominating the popularity charts.

In this regard, a very interesting survey was carried out by Nomisma-Crif on 1,100 Japanese consumers and was presented at the Agrifood Monitor 2019 Forum. The research confirmed Italy as the most representative country of quality food as perceived by the population, outclassing both France and the United States (i.e. the main suppliers of agrifood products in the Japanese market). However, not all consumers are ready to buy one of our products blindfolded: Agrifood Monitor’s cluster analysis shows that the vast majority of Japanese people are price sensitive and rational in their purchase choices. These are the “traditionalist consumers”, accounting for 48% of consumers. The second largest group (36%) is represented by “Millennials Experimenters”, young people from 18 to 38 years old, curious, open to novelties and attracted by Western culture. Their propensity to buy Made in Italy products is higher than average. However, the most interesting segment for our Made in Italy products is represented by the “Carefree globetrotters” (10% of the population): Generation X consumers (39-54 years old) with a high spending capacity. These are demanding, sophisticated and quality-conscious consumers. They are highly interested in Made in Italy and its certified excellence and so it is important to know how to land them using a specific and quality offer. In this perspective, has just taken place in Tokyo the “Week of Italian Cuisine” –  the event promoted by the Ministry of Foreign Affairs and International Cooperation and organized on the initiative and coordination of the Italian Embassy in Tokyo.

It is a focus on our traditions and our typical dishes, with over sixty events and initiatives scheduled throughout Japan in order to promote made in Italy food awareness.