The Cabinet approved a basic policy to reduce the consumption tax on food and beverages to 1% for 2 years from 1 April 2027. We examine how the shift toward eating at home and the tax cut could affect stock selection, and review the earnings trends of 20 companies.
The government has formally decided to introduce a transitional measure reducing the consumption tax rate on food and beverages, currently subject to the 8% reduced rate, to 1% for 2 years from 1 April 2027. The policy aims to effectively reduce the consumption tax to zero by combining the measure with income-linked benefits, although implementation will depend on future legislation and other prerequisites.
The key point is that the price gap between takeaway food and dining out will widen. Household budgets are facing increasing pressure to economise, with consumer spending by households of 2 or more people falling 3.3% year on year in June 2026 to approximately ¥290,886 per household. In 2025, average monthly food spending was ¥89,754, accounting for 28.6% of consumer spending.
At food supermarkets, sales are often increasing while unit volumes remain sluggish, and some stores are making up the shortfall in sales volume through price increases. If the tax cut is implemented, the focus will be on changes in shopping frequency, items purchased per visit and household demand.
As specific examples, Life Corporation reported operating revenue of ¥223.296 billion and operating profit of ¥7.230 billion for the first quarter of the fiscal year ending February 2027. ブルーゾーンホールディングス reported operating revenue of ¥223.079 billion and operating profit of ¥11.635 billion for the same period.