Comparing Japan And American Food Markets

Comparing Japan and American Food Markets


     The Japanese Market has become vital to the U.S. Economy.   Japan is the

number one export market for the United States.  In 1993, Japan accounted for

37.6 percent of the total growth in U.S. value-added exports.

     U.S. food products, in particular, are a huge market in Japan.  American

agricultural exports to Japan in 1993 were $8.7 billion.  About one-third of

Japanese agricultural imports come from the United States.  However, there is

sometimes a mixed reception in Japan regarding products from the United States.

Japanese, on one hand, wish to do things "American" ever since the Second World

War.  But, on the other hand, U.S. products are perceived as less sophisticated

than Japanese and European food products, in product formulation or packaging.

Also, U.S. products are considered not as safe as domestics ones, due to the use

of pesticides and chemical additives and the partiality of the Japanese consumer

to purchase Japanese items.

     The reason for the large volume of exporting to Japan is due to United

State's comparative advantages.  Food products are very expensive to produce in

Japan.   Japan's  current labor shortage, combined with import restrictions and

domestic price stabilization programs, have driven up domestic production costs.

     The Japanese food consumption pattern consist of an openness to foreign

products and a strong interest in things international.  All types of

international cuisine can be found in Japan.  Many varieties of tropical and

imported fruits, such as Florida grapefruit, California cherries, New Zealand

kiwifruit, and Hawaiian papayas are readily available in supermarkets and

department stores, as are imported alcoholic beverages ranging from Kentucky

bourbon and Chinese beer to Russian vodka and California sake.

     Japanese food consumption is marked by short-term trends.  For example,

Korean and Mexican food became popular a few years ago and then unpopular.

There have also been Italian and Spanish food booms.

     The Japanese economic recession has shifted the focus of many consumers

to the more affordable neighborhood restaurants that feature traditional

Japanese dishes.  This has made consumers price conscious at grocery counters,

which benefits cheaper imported goods.  As a result, imported foods account for

over half of Japan's average annual caloric intake.  Moreover, with Japanese

agriculture contracting, Japan's reliance on (and openness toward) imported food

products will continue to increase.


Conclusion


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