December 2023 Sees Second Lowest Food Price Increases of the Year

Japanese Makers to Increase Prices for 677 Food and Beverage Items in December

According to the latest report from Tokyo-based research firm Teikoku Databank Ltd., prices for a total of 677 food and beverage items from 195 major Japanese makers are set to rise in December. This marks the second smallest monthly total of price hikes this year, suggesting a relatively stable pricing environment for the industry.

What’s more, the number of items subject to price increases is expected to decrease significantly in the full year of 2024, with the figure estimated to be no more than around 10,000. This is down from over 32,000 items that experienced price hikes this year. So far, only 1,596 items have been confirmed to be subject to price increases next year, indicating a more controlled pricing strategy among Japanese food and beverage makers.

In December, food and beverage items are expected to see recommended retail prices raised by about 35 to ¥40 for a 200-gram pack of butter sold by Morinaga Milk Industry Co., Megmilk Snow Brand Co., and Meiji Co., respectively. This adjustment is due to higher raw milk prices and reflects the ongoing nature of supply chain challenges that are impacting the industry.

Overall, the controlled nature of the price hikes and the strategic approach to raising retail prices suggest that Japanese makers are carefully navigating the current economic landscape. With the aim of balancing the need for profitability with affordability for consumers, it will be interesting to see how they continue to adapt their pricing strategies in the coming year.

As the global economy continues to evolve and respond to various challenges, it is likely that food and beverage makers in Japan and around the world will need to remain agile and adaptable in their pricing decisions. With ongoing supply chain disruptions and fluctuating raw material prices, the ability to effectively manage retail pricing will be a key factor in maintaining stability and sustainability in the industry.

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