Industry Update: Japan’s Functional Health Foods and Cross-Border E-Commerce Enter a Boom Phase Strong Expansion of Japan’s Functional Food Market

According to the latest report from IMARC Group, the Japanese functional food market reached USD 13.8 billion in 2024 and is projected to climb to USD 24.5 billion by 2033, with a compound annual growth rate (CAGR) of 5.9%. This growth is fueled by rising consumer awareness of health and preventive care, particularly the strong demand for products that support immunity and gut health.

Among product categories, probiotics and prebiotics represented the largest market share in 2023, while vitamins are expected to grow the fastest in the coming years. For companies specializing in functional health food R&D and exports—especially those with GMP compliance expertise and cross-border platform operations—this represents a significant market opportunity.

Cross-Border E-Commerce as an Accelerator for Product Expansion

Data shows that Japan’s cross-border e-commerce sector is booming. In 2023, the market size was approximately USD 5.329 billion, and it is expected to grow to USD 8.44 billion by 2032, with a CAGR of 6.9%. Japanese consumers show strong demand for imported health products, fashion items, and specialty goods, while trust in Japanese-made brands continues to rise across Asia.

In addition, platforms such as TikTok Shop are actively seeking to enter the Japanese market, driving the integration of social commerce and livestream shopping. This trend provides new opportunities for cross-border brands to build visibility and accelerate sales.

Functional Foods + Cross-Border E-Commerce: Dual Engines of Growth

From these trends, two clear directions emerge for future industry development:

·Expansion of functional health foods, especially products focused on immune support, gut regulation, functional beverages, and nutritional supplements.

·Diversification of cross-border e-commerce channels, with livestream commerce and social commerce rapidly fueling enthusiasm for overseas brands.

For enterprises with GMP consulting capabilities, trademark licensing strategies, OEM/ODM expertise, and cross-border logistics and e-commerce operations, this is a highly favorable market window.

Chiundo’s Perspective: How We Position Ourselves in This Trend

1.Capturing Growth Opportunities: Leveraging our Japanese government-issued pharmaceutical wholesale license and GMP consulting expertise to help partners launch functional foods in line with Japan’s *Foods with Function Claims (FFC)

2.Cross-Border Channel Integration: Using our cross-border e-commerce experience to bring new products to platforms such as Tmall Global, Rakuten, and Shopee, while actively exploring livestream commerce and new retail opportunities.

3.Brand Compliance and Protection: Securing brand value through trademark licensing and intellectual property strategies, while delivering full-process services that enhance competitiveness in global markets.