Higher raw-material costs, consumer preference for low prices and intensifying competition
First written in FY2016. 4 of 5 entries say "Worsened", first in FY2017. Latest entry: FY2023.
Nippon Shinyaku moved to the "Worse" side of this theme in 2017, 2 years before the typical company in this theme (2019).
The whole theme swung hardest in 2022: 24 of 31 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2023WorsenedAnnual report
「The functional foods business continues to face a challenging operating environment. Although demand for functional foods remains strong as health consciousness rises, transportation costs and raw material prices have surged.」
For the functional foods business, increases in transportation costs and raw material prices are described as surges, and the challenging operating environment continues. - FY2021WorsenedAnnual report
「The functional foods business continues to face a challenging operating environment. Although demand for functional foods remains strong as health consciousness rises, household consumption has stagnated amid cost-consciousness, while sports events have been cancelled and inbound demand has slowed due to the impact of COVID-19.」
In addition to continued cost-consciousness and weak consumption, the cancellation of sports events and the slowdown in inbound demand have become additional factors affecting the operating environment. - FY2019WorsenedAnnual report
「Although demand for functional foods is strong as health consciousness rises, the functional foods business continues to face a challenging operating environment due to sluggish household consumption driven by a preference for saving, higher transportation and labor costs, and intensifying competition among companies.」
In addition to the previously identified factors of higher raw-material costs, consumers' preference for lower prices and intensifying competition, the company cited sluggish household consumption and higher transportation and labor costs. - FY2017WorsenedAnnual report
「In the functional foods business, amid challenging economic conditions including sluggish consumption, customers are expected to impose increasingly stringent requirements for quality and food safety.」
For the functional foods business, the company expects consumer weakness as well as further tightening of customer requirements for quality and food safety. - FY2016First statedAnnual report
「In the functional foods business, the operating environment remains challenging as purchase prices for imported raw materials rise, consumers continue to favor lower prices and market competition intensifies further.」
The company identifies imported raw-material prices, consumers' preference for lower prices and market competition as external factors affecting the functional foods business.