Large level of product innovation in response to fast evolving trends is the key driver of the soft drinks market in Japan . The demand for fruit flavored drinks and product launches that appeal to older population are key to capture a higher percentage of market share in Japan .
According to Datamonitor’s Product Launch Analytics Japan held the second position in new product launches in the global soft drinks market, ranking next only to the US . It is a global trend setter in terms of new product development and a powerhouse for original product concepts
The Japanese soft drinks market is a hub for innovation using new flavors and ingredients. Trends tend to evolve much faster in Japan than in other countries and manufacturers need constant innovations which entice the Japanese consumer into buying. “Experimentation with new flavors as well as unique ingredients which have specific health benefits is a common trend in Japan ” observes Gaurav Marchanda, Datamonitor Analyst and author of the report Product Insights: Soft Drinks in Japan . Major carbonated drinks manufacturers are using unconventional flavors in new products to revive consumers' interest in carbonated soft drinks. Using fruit flavors in soft drink products has been another evolving trend across the market. Gaurav observes “fruit flavors such as apple, orange, grapefruit, peach, grape and pineapple were prominently used in the juices category and the flavored carbonate segments”
One of the key drivers of product trends in the Japanese soft drinks market is the rapidly aging population in the country. “Given the distinct demographic situation in Japan , manufacturers are more focused on new product launches which appeal to the older age segment”, says Gaurav. This has led soft drink manufacturers to launch a number of products with traditional Japanese flavors such as green tea, which is highly preferred by the older age group. Various age-related disorders have promoted the use of ingredients like antioxidant vitamins, omega-3 fatty acids, co-enzyme Q10 and glucosamine in soft drinks. This trend has also lead to a rise in products claiming to have anti-ageing properties.
The health consciousness trend is proving to be another major factor influencing new product development in Japan . This trend is the reason behind the surge of products asserting health claims such as ‘high vitamins, ‘high calcium’ and ‘high polyphenols’. As per Gaurav’s observation “The overall trend towards health consciousness offers high potential for further growth in the Japanese soft drinks market”.
Despite its large size and maturity the Japanese soft drinks market is expected to maintain a steady growth rate, mostly driven by products innovations and evolving product concepts which keep the Japanese consumer engaged and interested. As new trends surface in the market, the manufacturers can be expected to continue innovating their product lines to gain a larger share in the vastly lucrative Japanese soft drinks market’s pie. (Datamonitor)
