Sluggish consumer spending and competition for brand share

「Overall market sales are slightly above the previous year on a value basis as price revisions have taken hold, but volumes appear to be somewhat sluggish. With the burden of rising prices increasing, confectionery products are discretionary purchases whose consumption is easily restrained, and the situation remains difficult to view optimistically.」

「In the rice cracker industry, overall market value is expected to remain above the previous year, supported by firm demand and the effect of price revisions. Meanwhile, persistently high raw rice prices and uncertainty over procurement are placing a significant burden, while higher prices for other raw materials and energy, as well as labour and logistics costs, are driving costs higher, and companies continue to face a challenging business environment as they work hard to maintain earnings.」

「In the rice cracker industry, the first half of the fiscal year began with generally strong conditions, supported by the value-for-money of rice crackers and increased demand for snacks to accompany drinks. However, toward the latter half, demand for rice crackers temporarily stalled due to prolonged extremely hot weather, and market conditions deteriorated somewhat as the price revisions implemented by various companies overlapped, resulting in a general tendency toward stagnation.」

「In the rice cracker industry, production volume remained broadly flat but conditions were generally strong, as the value-for-money of rice crackers within the overall food market was recognised, demand for snacks to accompany drinks became established and price revisions took effect. Looking ahead, the raw rice situation has become extremely serious, with no end in sight to surging prices or supply shortages. Securing a stable supply of raw rice and achieving prices commensurate with product value are expected to be major challenges, and the business environment is expected to become more challenging than ever.」

「In the rice cracker industry, household demand remains firm, and as the impact of price revisions takes hold, overall market sales are expected to remain above the previous year. Meanwhile, in addition to shortages and surging prices for domestically produced rice caused by last summer's extremely hot and unsettled weather, the surge in imported rice prices is making it difficult to secure a stable supply of raw materials, and manufacturing costs are expected to rise.」

「In the rice cracker industry, the overall market appears to be tracking above the previous year, supported by sustained household demand and the increasing impact of price revisions.」

「In the rice cracker industry, household demand, which rose during the COVID-19 pandemic, remains firm, and the effect of price increases implemented since last autumn continues to support strong market growth. Meanwhile, with raw material and electricity costs remaining elevated and labour and logistics costs increasing, companies are working hard to maintain profitability and appear to be exploring ways to improve production efficiency by concentrating on core brands and shifting toward communicating product value.」

「In the rice cracker industry, as a major industry player recovers from its fire and the distribution of market shares returns toward its previous pattern, competition is certain to intensify further.」

「In the rice cracker industry, the distribution structure is changing, with lower-priced drugstores and discount stores growing relative to general merchandise stores and convenience stores. In addition, mergers and integrations among these operators have created large-scale retailers, intensifying price competition more than ever.」

「In the rice cracker industry, the increase in production following the fire at a major industry player eased after summer, and companies are gradually returning to normal operating structures. Each company is expanding the launch of new products, which had previously been held back to increase production of standard products, and is stepping up efforts to stimulate consumption during the peak autumn and winter demand season. Meanwhile, manufacturing costs, including raw material and fuel costs, remain elevated, and with price increases failing to keep pace, the business environment remains challenging, particularly in terms of profitability.」

「In the rice cracker industry, the industry as a whole established increased production capacity and worked to maintain product supplies following a fire at a major industry player. However, market conditions have remained somewhat sluggish due to declining summer demand and changes in consumer sentiment.」

「However, as concerns grow over an economic downturn caused by global inflation amid uncertainty surrounding the situation in Ukraine and surging resource and energy prices, prices for many products continue to rise, compounded by the weakening yen, while consumers are becoming more focused on saving. Overall, the outlook is expected to become increasingly challenging.」

「As companies face the common challenge of responding to changes in consumption and stimulating demand, price competition is intensifying and raw material and fuel prices are rising substantially, making the business environment increasingly challenging.」

「In the rice cracker industry, the decline following last year's special demand from stay-at-home consumption continues, and sales value appears to have contracted year on year. While requests for people to refrain from going out due to the spread of infectious disease continue, companies appear to be focusing on responding to longer periods spent at home, demand for drinking at home and the development of younger customers. However, price competition is intensifying and raw material prices are rising sharply, so the challenging business environment is expected to continue.」

「In the rice cracker industry, companies are counting on demand for drinking at home while the recovery in foot traffic remains constrained, but the decline following last year's special demand from stay-at-home consumption continues and price competition is intensifying.」

「In the rice cracker industry, stay-at-home demand rose temporarily but lost momentum after summer, with production value and retail sales value remaining broadly flat. As the end of the COVID-19 pandemic remains uncertain, consumers are increasingly focused on saving, and the operating environment is expected to become even more challenging as sales competition intensifies.」

「In the rice cracker industry, although demand increased at the beginning of the year due to stay-at-home consumption, a recovery in demand for tourism-related souvenirs and inbound tourism is not expected. Conditions also vary by retail format, consumer behaviour is becoming more oriented toward saving, and market and competitive conditions are expected to become increasingly challenging.」

「In the rice cracker industry, demand increased in the first quarter, mainly for core products, due to stay-at-home demand. However, consumption declined thereafter as demand levelled off and amid extremely hot weather, while the recovery in demand for gifts, souvenirs and inbound tourism has been delayed, and the challenging outlook is expected to continue.」

「In the rice cracker industry, although demand for staying at home temporarily created busy conditions due to increased production, mainly of core products, demand for gifts, souvenirs and inbound tourism has fallen sharply, with no recovery in sight.」

「As the distribution structure changes, with general merchandise stores and department stores stagnating and convenience stores reaching saturation, while low-priced drugstores and discount stores grow, price competition is intensifying more than ever.」

「In the rice-cracker industry, price competition is intensifying further as distribution structures change, with inexpensive drugstores and discount stores expanding amid stagnation at general merchandise stores and department stores and signs of saturation at convenience stores. Higher costs for raw materials and logistics are also significant, and challenging business conditions continue.」

「In the rice-cracker industry, higher costs for raw materials and logistics are weighing on results, while price competition has intensified further ahead of the consumption tax increase, making the low-price strategy increasingly pronounced and keeping business conditions challenging.」

「Despite expectations for demand around extended holidays and other periods, the rice-cracker industry faces a challenging business environment in which demand has failed to expand, price competition continues to intensify as companies pursue growth, and the divide between cost-focused and quality-focused strategies is widening further.」

「In the rice-cracker industry, the operating environment is expected to remain increasingly challenging, with production and retail sales values likely to remain broadly flat, while raw-material prices, beginning with rice, continue to soar and selling costs rise as competition intensifies.」

「In the rice-cracker industry, the divide between cost-focused and quality-focused approaches is widening as companies navigate higher costs for rice and logistics and intensifying price competition.」

「In the rice-cracker industry, the divide between cost-focused and quality-focused approaches is rapidly widening as companies navigate higher costs for rice and logistics and intensifying price competition.」

「However, amid sluggish growth in the rice-cracker market and delays in the pass-through of price increases necessitated by soaring prices for key raw materials, net sales for the first quarter of the current consolidated cumulative period were ¥5,840 million, down 4.0% year on year, and operating income was ¥3 million, down 96.8% year on year.」

「In the confectionery and food industries, particularly the rice-cracker market, the company faces a challenging environment in which the overall market remains below the previous year and a multifaceted approach to expanding consumption continues to be necessary, amid major social structural changes such as the declining birthrate and aging population, as well as the need to respond to growing health consciousness and increasingly diverse tastes.」

「However, consumers’ preference for saving on food and other items remains unchanged, and conditions remain uncertain. In particular, the rice-cracker market has become extremely challenging, with the market as a whole falling below the previous year and competition intensifying further.」

「However, the outlook remains uncertain due to concerns about overseas political developments and rising geopolitical risks.」

「The domestic retail sector, the Group’s main sales channel, continues to face intense sales competition due in part to sluggish personal consumption amid stronger consumer preferences for household financial protection and saving.」

「The domestic retail sector, the Group’s main sales channel, is facing intense sales competition as personal consumption stagnates amid stronger consumer preferences for household financial protection and saving.」

「The domestic retail sector, the Group’s main sales channel, continues to face challenging conditions, including sluggish personal consumption as consumers increasingly prioritize protecting household finances and saving.」

「As the rice-cracker market remains sluggish and increasingly oligopolistic amid the delayed recovery in personal consumption, intensifying competition for brand share among leading manufacturers is expected to increase selling costs.」