Japan’s Food Sector Targets India for Growth Amid Domestic Market Challenges
Japan’s industrial landscape is undergoing a significant transformation as the country adapts to major social and demographic changes. Factors such as a declining population, an aging society, and a shrinking domestic market are prompting Japanese industries to rethink their growth strategies and increasingly look toward international markets.
Recognizing these challenges, the Japanese government has identified 17 priority industrial sectors for strategic development. Among them, the agriculture and fisheries sectors are exploring innovative solutions such as plant factories and land-based fish cultivation systems. These technologies offer stable production, reduce dependence on climate conditions, and help ensure a consistent supply of food products.
As domestic demand weakens, Japan’s agricultural and food industries are turning their attention to overseas opportunities, with India emerging as one of the most promising markets.
According to Ken Sasaji, Deputy Director General of the Ministry of Agriculture, Forestry and Fisheries (MAFF), India presents substantial growth potential for Japanese food products.
Japanese food processing company known for its tomato-based products, established a manufacturing facility in India in 2018. The company produces pizza sauces, tomato sauces, and other products using locally sourced tomatoes. As demand continues to grow, Kagome is focused on building a comprehensive value chain that spans raw material sourcing, processing, and distribution.
Another major Japanese company, Kikkoman, is exploring ways to integrate its traditional soy sauce products into Indian cuisine. The company is conducting research on flavor compatibility, with particular attention to Indo-Chinese cuisine. This initiative could open new opportunities for introducing soy sauce to a broader segment of Indian consumers.
Sasaji emphasized that infrastructure development remains critical for attracting further investment from Japan’s food industry.
Interest in the Indian market continues to grow among Japanese businesses, while India is actively implementing tax reforms and investment incentives to attract foreign capital. With both countries committed to strengthening economic cooperation, the future of Japan–India collaboration in the food sector appears highly promising.
Building mutual understanding, aligning business objectives, and fostering long-term partnerships will be key to unlocking the full potential of this growing relationship.