Tokyo, April 30 (Jiji Press) – In May, major food companies in Japan plan to increase prices on 70 different products. This is a significant drop, down 85.4% compared to last year, according to Teikoku Databank Ltd., a research firm.
A representative from Teikoku Databank has raised concerns that more food price hikes could happen later this summer and fall. They attribute this to worries about naphtha supplies, influenced by the ongoing conflict in Iran.
The upcoming price changes include 38 snack items, 16 processed foods, and 16 beverages. For instance, Ezaki Glico Co. will raise the price of its popular Pocky chocolate snack from around 238 yen to 245 yen per pack. Teikoku Databank surveyed 195 companies to gather this information.
Food manufacturers are facing rising costs from several areas, including packaging due to soaring naphtha prices. In addition, expenses from transportation and utilities like electricity and gas are also on the rise.
This situation is not just a local issue—it reflects a global trend. The food and beverage industry worldwide has felt the impact of fluctuating commodity prices and supply chain disruptions, especially since the pandemic and ongoing geopolitical risks have heightened market instability.
According to a recent report by the Food and Agriculture Organization (FAO), global food prices have been volatile. The FAO’s food price index shows an increase of 1.7% for vegetable oils alone in recent months. This indicates that consumers everywhere may soon face similar pressures as manufacturers adapt to rising costs across various fronts.
The consumer reaction is already evident on social media, where discussions about food affordability have gained traction. Many users express frustration over the repeated hikes, sharing tips on budgeting and meal planning as a response.
In this challenging economic landscape, both consumers and producers are grappling with how to adjust. Keeping an eye on global events and local market changes will be crucial for navigating these shifts.
[Copyright The Jiji Press, Ltd.]
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