In 2024, Japan recorded a 1% decline in total alcoholic drinks packaging unit volumes, reflecting broader changes in consumer behaviour and regulatory conditions. Key categories such as beer, wine and spirits, which historically drove packaging demand, saw weakened sales due to several interrelated factors. Rising prices, influenced by inflation and cost pressures, along with tax revisions – particularly the consolidation of beer-like beverages under a standardised tax system

In 2024, Japan’s beauty and personal care packaging unit volumes declined by 1%, shaped by demographic shifts and evolving consumer preferences. However, sun care and deodorants were recording positive growth, with brands such as Biore or Shiseido introducing innovative formats like portable sprays and dual-function roll-ons. Fragrances packaging saw strong growth, fuelled by the emotional appeal of fragrances and their prominent presence on social media, seeing brands like Sholayered launch com

Economic freedom is solid and corruption is less of an issue than in other nations, but the political landscape is unstable and public finances have worsened. Economic performance is subdued and tariffs are adversely impacting exports, but tourism is supportive and inflation is falling. A highly urban environment will drive consumption, but incomes are growing only slowly. Mobile adoption has been strong and the focus is on artificial intelligence, but cyberattacks continue to pose a threat.

In 2024, Japan’s home care packaging volumes continued to decline, falling by 1%, extending a multi-year trend. This downward trajectory is attributed to the country’s mature refill culture, regulatory pressure and evolving consumer preferences. Japan’s refill market is among the most advanced globally, with Kao Corp leading the way in this area – by 2023, refill pouches were accounting for 80% of its detergent, cleaning and body care sales. Industry-wide, the adoption of refills has resulted in

Retail value sales of airlines are rising in Japan in 2025, though the category faces a complex landscape shaped by both persistent challenges and emerging opportunities. While airlines continues its recovery from the pandemic-era downturn, challenges remain. One of the most pressing issues is the sharp rise in operational costs, largely driven by the continuation of weakened yen. Since many airline expenses such as fuel, aircraft leasing and maintenance are denominated in foreign currencies, th

Travel in Japan in 2025 is experiencing solid value sales growth, led by continued strong demand in inbound travel. The most significant driver in 2025 is the return of Chinese tourists, historically Japan’s largest inbound market. This resurgence is amplified by a persistently weak yen, which has made Japan an attractive destination for international travellers seeking value. Tourists are staying longer and spending more, especially on shopping, dining and cultural experiences.

Retail value sales of lodging (destination) are rising rapidly in Japan in 2025, showing strong growth fuelled by inbound tourism, domestic travel and evolving traveller preferences. Lodging players are also embracing innovation, offering smart check-ins, multilingual services and personalised guest experiences to meet the expectations of modern travellers. These innovations are also a key strategy to tackle the lack in labour resources due to the declining working population in Japan.

Within tourism flows in Japan, inbound arrivals continues to rise in 2025. The most significant contributor is the return of Chinese tourists, who have historically represented the largest share of Japan’s inbound market. In December 2024, the Japanese government announced a major relaxation of visa requirements for Chinese tourists visiting Japan, implemented from spring 2025. In addition to implementation of new measures including the introduction of 10-year multiple-entry tourist visas, Japan

Retail value sales of booking in Japan are increasing steadily in 2025, with online booking driven by travellers’ preference for convenience, flexibility and access to a wide range of accommodation options. Digital platforms have become the primary channel for both domestic and international reservations, especially with the rise of mobile-first travel planning. However, despite its convenience, concerns around booking accuracy and reliability have surfaced. Travellers and hotel operators have r

Retail value sales of cough, cold and allergy (hay fever) remedies are set to rise in Japan in 2025. Japan’s pharmaceutical pricing revision excluded 94 items from the selective treatment reimbursement scheme during the year, leading to increased out-of-pocket medical costs. This shift has accelerated consumer movement towards over-the-counter (OTC) medicines, as individuals increasingly choose to manage minor health issues without visiting medical institutions. The growing awareness of self-med

Retail value sales of herbal/traditional products are expected to rise in current terms in Japan in 2025. Stable demand has been supported by a series of targeted product launches and shifting consumer needs. Amid continued concern over infectious diseases and shortages of certain expectorants and cough suppressants, demand has risen for remedies addressing phlegmy coughs. In response, Kracie introduced a large-volume version of its traditional formula, Gokoto, drawing attention from both existi

Retail value sales of nicotine replacement therapy (NRT) smoking cessation aids are expected to fall in current terms in Japan in 2025. The category is continuing its slow decline, driven primarily by the shrinking base of smokers and the growing shift towards heated tobacco products. However, several external factors temporarily stimulated demand during the year.

Retail value sales of eye care are expected to grow in current terms in Japan in 2025, following the trend observed in the previous year. Despite a delayed start to the pollen season, the high volume of airborne pollen has contributed to the strong performance in the allergy eye care category. Products targeting allergy-related eye symptoms have seen increased demand, reflecting heightened consumer sensitivity to seasonal environmental factors.

Retail value sales of consumer health are expected to rise in current terms in Japan in 2025. During the year, Japan’s economy has continued its gradual recovery, but the healthcare and daily goods sectors have experienced significant shifts driven by rising costs and regulatory reforms. A major turning point came with revisions to drug pricing and selective treatment policies, which led to 94 items being excluded from insurance coverage. This change has increased out-of-pocket expenses for cons

Retail value sales of analgesics are set to rise in current terms in Japan in 2025. During the year, Japan’s pharmaceutical landscape saw a significant shift as the national drug price revision excluded 94 items from the selective treatment reimbursement scheme. This change has led to increased out-of-pocket medical expenses, prompting more consumers to turn to over-the-counter (OTC) medicines before visiting healthcare institutions. The growing awareness of self-medication has played a key role

Retail value sales of sports nutrition are set to rise in current terms in Japan in 2025. During the year, sports protein products has continued to drive growth, supported by regulatory changes and shifting consumer values. In March, the Consumer Affairs Agency revised food labelling standards, raising the reference intake for protein. This move reinforced the importance of protein in daily nutrition and led to protein powder being added to the Consumer Price Index, signalling its integration in

Retail value sales of digestive remedies are set to rise in current terms in Japan in 2025. The category is seeing growth driven primarily by rising unit prices and the expansion of high-value-added products. The continued recovery of lifestyle activities - such as dining out, social drinking, and travel – have supported steady domestic demand, reinforcing the relevance of digestive health solutions in everyday life. Pharmacies remains the dominant sales channel, maintaining its role as the prim

Retail value sales of dermatologicals are set to rise in current terms in Japan in 2025. The category is expected to see value sales grow despite stagnant volumes due to rising unit prices and the expansion of high-value-added products. Health and personal care stores and pharmacies remain the primary sales channels, but in categories where privacy is a key concern - such as hair regrowth treatments - consumers are increasingly turning to e-commerce for both information and purchases. This shift

Retail value sales of wound care are expected to rise in current terms in Japan in 2025, maintaining positive growth for the second consecutive year. This stability has been largely driven by the performance of sticking plasters/adhesive bandages, which remains the leading category in terms of both volume and value. These products benefit from consistent consumer demand, reflecting their everyday utility and strong brand recognition. In contrast, the segment comprising gauze, tape, and other wou

Retail value sales of dietary supplements are expected to rise in current terms in Japan in 2025. During the year, the category has begun to recover from the decline experienced in 2024, which had been triggered by consumer hesitancy following the red yeast rice safety issue. While the overall market showed signs of rebound, the lingering effects of the incident continued to impact certain segments, particularly those with a high proportion of elderly users. Supplements such as garlic, glucosami

Retail value sales of paediatric consumer health are expected to rise in current terms in Japan in 2025, mirroring trends being seen in the adult segment. Persistent levels of infectious diseases have continued to support demand in core categories such as cough, rhinitis, cold remedies, and antipyretic analgesics, which has maintained stable performance throughout the year.

Retail value sales of vitamins are expected to rise in current terms in Japan in 2025. The category has continued to grow steadily, driven by an ageing population, a rise in chronic health conditions, and increasing interest in preventive healthcare and beauty benefits. Unlike the broader vitamins and dietary supplements category, which experienced a temporary slowdown in 2024 due to the red yeast rice issue and consumer cost-cutting amid inflation, the vitamins segment alone has shown consisten

Retail value sales of sleep aids are set to decline in current terms in Japan in 2025. Volume sales are also expected to continue to fall during the year. Players have made efforts to sustain demand through brand refreshes and public education. A notable example was the full packaging renewal of the leading product, Drewell, which aimed to reinforce a sense of safety and ease of use. This redesign was not merely cosmetic - it served to visually communicate proper usage and reassure consumers ami

Retail value sales of weight management and wellbeing are set to rise in current terms in 2025. The year has seen signs of modest recovery, rebounding slightly from the previous year’s downturn caused by the red yeast rice controversy. The weight loss supplements segment, in particular, has begun to regain consumer trust, supported by new product launches and brand revitalisation. A standout has been Fancl’s Premium Calolimit, launched in October 2024, which expanded beyond traditional sugar and