Population decline, oversupply, falling unit selling prices, and declining consumer preference for sweet products

「Although demand recovered, particularly for business-use products for the food-service industry, sales of products for beverages remained sluggish as temperatures were lower than usual and consumers became more inclined to economize amid high prices. Revenue in the Saccharification Products segment was ¥11.26 billion, down 0.3% year on year.」

「In terms of sales, demand, mainly from the restaurant industry, showed an upward trend against a backdrop of recovering inbound tourism demand and other factors. However, in some segments of the face-to-face retail market, consumption at outdoor events declined as end users' preferences changed amid the extreme summer heat. In addition, consumers' inclination to save due to higher prices remained persistent, and shipments of saccharified products as a whole fell below the level of the same period of the previous year.」

「In terms of sales, demand from the restaurant industry showed an upward trend due to increased inbound tourism and other factors. Sales, primarily for beverages, increased from the same period of the previous year as the holiday period benefited from favorable weather. However, in some segments of the face-to-face retail market, consumption at outdoor events declined due to the effects of extreme heat, while consumers' persistent inclination to save amid higher prices also weighed on sales. Although some end products using the Company's products saw rush demand ahead of price increases, overall sales of the Company's products ended at roughly the same level as in the same period of the previous year.」

「Sales volumes for products as a whole declined from the previous fiscal year, affected by unfavorable weather from summer through autumn and consumers' persistent inclination to save throughout the period.」

「In terms of sales, demand, particularly from the restaurant industry, increased amid the recovery in foot traffic, including inbound tourism, as the economy recovered from the COVID-19 pandemic. Sales of saccharified products, particularly for beverages, also showed an upward trend in the first half as the holiday period benefited from favorable weather. However, sales volumes for products as a whole declined from the same period of the previous year due to unfavorable summer weather and consumers' growing inclination to save amid higher prices.」

「Over the longer term, the declining trend in overall domestic demand for carbohydrates due to Japan's gradually shrinking population will be a major challenge for the Company. However, demand for functional materials and raw materials that can contribute to richer lives for diverse consumers is expected to continue expanding. We believe that growing global awareness of sustainability, including initiatives toward carbon neutrality, means companies are expected to help resolve social issues sustainably and enhance corporate value through those efforts.」

「In terms of sales, demand for starch products used in flyers and pamphlets showed signs of recovery in areas such as tourism and events as socioeconomic activity normalized and foot traffic recovered. However, the impact of the continued digitization of newspapers and magazines remained significant, and the declining trend in paper production continued, resulting in lower sales volumes of starch for papermaking than in the cumulative period of the same quarter of the previous year. For saccharified products, sales volumes increased, particularly for beverages, due to the change in the legal classification of COVID-19 from Class 2 to Class 5 and the exceptionally hot summer. Although demand weakened at times as consumers became more inclined to save due to higher prices, foodservice demand, including from restaurants, was also recovering as foot traffic and opportunities to go out increased, resulting in higher overall sales volumes of saccharified products, including sales volumes for foodservice applications.」

「For saccharified products, although foot traffic recovered following the change in the legal classification of COVID-19 from Class 2 to Class 5 and favorable weather during the holiday period raised expectations for stronger demand, demand weakened at times as consumers became more inclined to save due to higher prices. However, sales volumes increased, particularly for beverages, due to the exceptionally hot summer.」

「For saccharified products, sales volumes for beverages declined as consumers became more inclined to save in response to price increases caused by higher prices for end products, despite the recovery in foot traffic following the change in the legal classification of COVID-19 from Class 2 to Class 5 and favorable weather during the holiday period. Meanwhile, foodservice demand, including from restaurants, was recovering, and sales volumes for foodservice applications increased. As a result, sales volumes declined for saccharified products as a whole.」

「Over the longer term, the declining trend in overall domestic demand for carbohydrates due to Japan's gradually shrinking population will be a major challenge. However, we expect demand to continue growing for products that contribute to building a sustainable society, driven by needs for functional materials and raw materials that enrich individual consumers' lives and growing global awareness of sustainability, with a focus on diversity, health and environmental considerations.」

「In terms of sales, although the seventh wave of COVID-19 infections occurred, the easing of restrictions on movement restored foot traffic and progress toward normalizing socioeconomic activity put product sales volumes on an upward trend. In the starch segment, sales volumes also increased as demand for starch products used in flyers and pamphlets gradually recovered. Although the decline in demand for starch used in information paper continues due to the digitization of newspapers and magazines and the entrenchment of working from home, sales volumes of starch for papermaking increased compared with the same quarter of the previous year. For saccharified products, demand for beverages increased as opportunities to go out increased, the holiday period benefited from favorable weather, and high temperatures continued through the summer. Demand for foodservice also recovered as restaurants extended their operating hours, resulting in higher sales volumes.」

「In terms of sales, demand for starch products used in flyers and brochures gradually recovered as social and economic activity normalized despite the seventh wave of COVID-19 infections, with the first summer in 3 years without restrictions on activities. Although demand for starch used in information paper continued to decline due to the digitalization of newspapers and magazines and the entrenchment of working from home, sales volumes of starch for papermaking increased from the same quarter of the previous year. Sales volumes of saccharification products increased as demand for beverages rose with the recovery in foot traffic following the easing of restrictions on activities, favorable weather during the May holiday period, and continued high temperatures during the summer, while commercial demand recovered as restaurant operating hours were extended.」

「In terms of sales, demand for starch products used in flyers and brochures showed signs of recovery as social and economic activity normalized following a decline in COVID-19 cases. However, sales volumes of starch for papermaking fell from the same quarter of the previous year because the digitalization of newspapers and magazines progressed and overall paper production declined. Sales volumes of saccharification products increased as demand for beverages rose with the easing of restrictions on activities and favorable weather during the May holiday period, while commercial demand recovered as restaurant operating hours were extended.」

「In terms of sales, sales volumes of starch products increased from the same quarter of the previous year, as demand for paper used in brochures, flyers and office copy paper was beginning to recover from the sharp decline in the previous fiscal year. Sales volumes of saccharification products were also trending upward following a gradual recovery in demand as the food-service industry resumed operations after the lifting of the state of emergency in October. However, sales volumes remained below the same quarter of the previous year because the Company was unable to make up for sluggish consumption during the period of measures such as the state of emergency and weak beverage sales caused by adverse weather including prolonged rain.」

「Although total demand is expected to decline over the medium to long term due to the declining birthrate, an aging population and a gradual population decline, demand for products with distinctive functions or value is expected to remain firm.」

「Demand for saccharification products used in commercial products such as beverages and alcoholic beverages continued to decline due to the cancellation of outdoor events, capacity restrictions, and restaurant closures and shortened operating hours, resulting in lower revenue. However, sales increased from the same quarter of the previous year as stay-at-home consumption of alcoholic beverages and seasonings for household use expanded, and sales of saccharification products, which had been sluggish in the same quarter of the previous year, recovered.」

「In terms of sales, demand for brochures, flyers and other materials declined as travel decreased due to people refraining from going out, while use of office copy paper declined as working from home became more common. As a result, sales of starch products for papermaking fell significantly from the same quarter of the previous year. Demand for saccharification products used in commercial products such as beverages and alcoholic beverages declined, resulting in lower revenue, due to the cancellation of outdoor events, capacity restrictions, and restaurant closures and shortened operating hours.」

「In terms of sales, demand from the food-service industry declined significantly as restaurants nationwide closed and people refrained from going out during the COVID-19 pandemic. As a result, sales of saccharification products used in commercial products such as beverages and alcoholic beverages declined. In addition, demand for paper used in brochures and other materials declined as people refrained from going out and demand for paper weakened as working from home became more common, resulting in lower sales of starch products for papermaking.」

「Starch products for processed foods sold steadily, but sales of starch products for papermaking were sluggish due to declining demand for paper, resulting in lower overall sales volumes of starch products. In addition, as competition among companies remained intense, sales volumes of both products and by-products declined, resulting in challenging earnings conditions.」

「In terms of sales, temperatures were higher than the previous year and weather conditions were favorable from April onward. However, demand for the May holiday period, which coincided with the change of era, began to be brought forward from the end of the previous fiscal year, and cool weather during the rainy season and adverse summer weather also had an impact. As a result, sales volumes of saccharification products for third-category beer and soft drinks declined. Starch products for processed foods remained firm, but demand for starch products for papermaking declined due to production adjustments by paper manufacturers, resulting in lower overall sales volumes of starch products. In addition, as competition among companies remained intense, sales volumes of both products and by-products declined, resulting in challenging earnings conditions.」

「In terms of sales, temperatures were higher than the previous year and weather conditions were favorable from April onward. However, demand for the May holiday period, which coincided with the change of era, began to be brought forward from the end of the previous fiscal year, and adverse summer weather also had an impact. As a result, sales volumes of saccharification products for third-category beer and soft drinks declined.」

「In terms of sales, temperatures were higher than the previous year and weather conditions were favorable from April onward. However, demand for the May holiday period, which coincided with the change of era, began to be brought forward from the end of the previous period, and sales were also affected by logistics restrictions before and after the holiday, followed by a reaction after the holiday. As a result, sales volumes of saccharification products for the third-category beer and soft-drink markets declined.」

「In terms of sales, saccharification products for beer-type beverages, soft drinks and frozen desserts remained firm due to relatively favorable weather after the May holiday period and after the start of the rainy season, temperatures above normal from April onward, and extreme summer heat. However, products for bread and dairy beverages were sluggish due to the extreme heat, and sales volumes declined due in part to the effects of disasters including torrential rain, typhoons and earthquakes.」

「In terms of sales, saccharification products for beer-type beverages, soft drinks and frozen desserts remained firm due to relatively favorable weather during and after the May holiday period, temperatures above normal from April onward, and extreme summer heat. However, products for bread and dairy beverages were sluggish due to the extreme heat, and sales volumes declined due in part to the effects of disasters including torrential rain, typhoons and earthquakes. Starch products for processed foods remained firm, but shipments of starch products for papermaking were sluggish due to declining demand for paper, resulting in lower overall sales volumes.」

「In terms of sales, saccharification products for beer-type beverages, soft drinks and frozen desserts remained firm due to relatively favorable weather during and after the May holiday period, temperatures above normal from April onward, and extreme summer heat. However, products for bread and dairy beverages were sluggish due to the extreme heat, resulting in lower sales volumes. Starch products for processed foods remained firm, but shipments of starch products for papermaking were sluggish due to declining demand for paper, resulting in lower overall sales volumes.」

「In terms of sales, the markets for beer-type beverages, high-alcohol beverages and soft drinks remained firm, as temperatures stayed higher than usual from April onward and weather was relatively favorable during the May holiday period and after the start of the rainy season. As a result, sales volumes of saccharification products increased.」

「In terms of sales, weather conditions were relatively favorable after the May holiday period, but temperatures fell and rainy days continued in northern and eastern Japan during the summer due to adverse weather. As a result, shipments of saccharification products for soft drinks, beer-type beverages and other products were generally sluggish. In terms of earnings, conditions remained challenging due in part to falling selling prices amid intensifying competition among companies and rising crude oil prices.」

「In terms of sales, weather conditions were relatively favorable after the May holiday period, but temperatures fell and rainy days continued in northern and eastern Japan during the summer due to adverse weather. As a result, shipments of saccharification products for soft drinks, beer-type beverages and other products were generally sluggish.」

「In terms of sales, weather conditions were relatively favorable after the May holiday period, but temperatures fell and rainy days continued in northern and eastern Japan during the summer due to adverse weather. As a result, shipments of saccharification products for soft drinks, beer-type beverages and other products were generally sluggish.」

「In terms of earnings, conditions remained challenging due in part to the impact of falling selling prices amid intensifying competition among companies.」

「In terms of sales, shipments of saccharification products for beverages, including soft drinks, remained strong due to favorable weather during the May holiday period, extreme summer heat and the lingering heat thereafter, despite the effects of prolonged rain and a major typhoon in September, resulting in higher sales volumes. In terms of earnings, selling prices fell due to lower raw-material costs and other factors, resulting in lower revenue, but profits increased due to higher sales volumes and the continued low levels of raw-material and fuel prices.」

「In terms of sales, shipments of saccharification products for beverages, including soft drinks, remained strong despite the effects of prolonged rain and a major typhoon in September, as well as the effects of extreme summer heat, resulting in higher sales volumes. In terms of earnings, selling prices fell due to lower raw-material costs and other factors, but earnings improved due to higher sales volumes, a stronger yen, and the continued low levels of heavy fuel oil prices and other costs.」

「Meanwhile, the business environment surrounding the Group is expected to remain extremely challenging. Due to the structural issues of a declining birthrate, an aging population and population decline, supply capacity is expected to continue exceeding demand for products on a relative basis, while selling prices are expected to continue falling. In addition, demand for the Group’s main product, high-fructose corn syrup, is highly susceptible to weather conditions, and the growing health-conscious trend is reducing preference for sweet foods.」