Nutraceutical Beverages in Japan: A Growing Market

Reviewing the latest on tea-based beverages and innovations based on nutraceutical ingredients.

ByRon Bailey

The solid growth of the nutraceutical beverage market in Japan is continuing, reflecting the increasing interest by Japanese consumers in health and wellness foods and beverages. This growth has been ongoing for several years, with internal category re­arrangements of course, but with a definite continuing trend upward.

Traditional Nutraceutical Beverages

Green tea in leaf tea form has been the traditional hot beverage of choice in Japan, with anecdotal health claims for a variety of conditions like prevention of dental caries, weight maintenance and even anti-cancer properties. Prepacked leaf tea/tea bags is still an 80,000 ton per year business in Japan, although that product form has been in decline in recent years, and the use of green tea leaves for ready-to-drink (RTD) green tea has more than doubled in the past five years to over 20,000 tons. Much of the consumption of RTD green tea is by younger Japanese, who have been shifting their interest to green tea, oolong tea and blended tea drinks, and away from carbonated drinks and fruit-based beverages. RTD green tea drinks are now as large a market as all carbonated drinks, including traditional health drinks. Much of the growth is related to the known health benefits of the green tea catechins, both natural and fortified.

At the same time, the market for soymilk, while still relatively small in Japan, has also nearly doubled in the past five years. Again, the basis for the growth is primarily related to the demonstrated health benefits from the soy isoflavones and soy proteins in the soymilk. Recently several soymilk products were granted Foods for Specified Health Use (FOSHU) status. Health claims include: “soy protein actively lowers serum cholesterol,” for example.

Important Beverage Distribution Approaches

Although the number of soft drink vending machines in Japan has leveled off at just under 2.2 million reflecting near saturation conditions in the marketplace, and the annual sales from a single average vending machine has also leveled off at just under $10,000, Japanese consumers continue to expect new beverage introductions through the vending machine distribution channel. The Japanese beverage industry is more than willing to support this consumer interest, given the nearly $600 per household that is spent on vending machine purchases (not just beverages) per year.

The convenience store distribution channel is another favorite for new beverage introductions. Large chains such as 7-Eleven, now with just under 11,000 stores throughout Japan, are commonly entering into joint new product development relationships with food and beverage companies for products to be sold exclusively through its stores.

FOSHU Nutraceutical Beverages

As of August 1st, 59 new FOSHU products were approved by the Japanese Ministry of Health, Labor and Welfare—over half were designated as “soft drinks” (including the official category of “powdered soft drinks”). So far this year there have been many more powdered soft drink approvals (33) than liquid soft drinks (8), indicating at least a short-term shift in emphasis.

The FOSHU soft drinks in beverage form approved so far this year include products with sardine peptide containing valyl-tyrosine for “mild hypertension;” globin protein hydrolysate, which “suppresses a rise in serum neutral fat after meals;” Tochucha saccharide (geniposidic acid) for “mild hypertension;” indigestible dextrin dietary fiber to “improve bowel movement;” indigestible dextrin dietary fiber that “moderates the absorption of sugar;” soy protein, “which actively lowers serum cholesterol” and sesame peptide for “mild hypertension.”

In addition, this year’s approvals list also includes other product forms that can be considered nutraceutical beverages, including lactic acid bacteria drink with lactotripeptides (VPP, IPP) for “mild hypertension;” coffees with coffee bean manno-oligosaccharide to “regulate the intestines” and soymilks with soy protein, “which actively lowers serum cholesterol.”

Lactotripeptide is the functional ingredient developed by Calpis Company in Japan. This ingredient was recently licensed to Unilever for inclusion in selected foods and beverages in Europe. Unilever is now reporting positive re­sults from its clinical trials for hypertension, which confirms the Calpis FOSHU clinical experience in Japan.

Nutraceutical Ingredients in
Non-FOSHU Beverages in Japan

On-label health claims are not allowed in Japan except for FOSHU products and the newer generic health claims for vitamins and minerals within the Foods with Nutrient Function Claims category. Japanese consumers, however, are ex­posed on a regular basis to health and wellness messages in television and print advertising, as well as television infomercials. Non-FOSHU nutraceutical beverage ingredient examples from the June and July 2005 issues of Japanscan Food Industry Bulletin include:

• soy isoflavones in a functional drink
• GABA (gamma aminobutyric acid) and sesame lignans in a functional drink
• kale juice and soymilk in a functional drink
• vinegar drink to improve serum cholesterol
• glucosamine, chondroitin and collagen peptide in a functional drink
• mineral water with natural vanadium and electrolytic reduction processing
• soymilk soy isoflavones to improve bone metabolism
• coffee with medium-chain triglycerides for body fat reduction
• green tea with added catechins
• berry juice anthocyanins “kind to the eyes” in a functional drink
• green tea L-theanine for a “relaxing effect” in a functional drink

For some of these products, the (im­plied) health claims are included in the promotional literature that is part of new product introductions. In others, such green tea catechins, the Japanese consumer awareness of the health benefits is well known and does not need to be restated. Some of these products may eventually be converted to FOSHU status as marketing experience is gained for the products. In some cases, the company introducing the product will have conducted at least one clinical study using its own product rather than simply borrowing supporting science from the public domain. Both ap­proaches have been effective.

Notable Nutritional Beverage
Market Trends

Japanscan Food Industry Bulletin in its May 2005 issue translated into English portions of the 2004 annual survey from the Japan Soft Drinks Association. The categories of soft drinks covered included carbonated, fruit-based, coffee drinks, tea drinks and “other drinks.” There were several interesting trends in the 2003 to 2004 data. The most prominent included:

• Tea and coffee drinks now have a nearly 50% share of the “soft drinks” market by volume;
• Green tea drinks continued their growth, with sales value approaching $4 billion;
• Blended tea drink sales were up 10%, with a value about one-half of green tea sales;
• Soymilk was up another 10%, more than doubling in volume in only two years; and
• Packaged water continued its growth, up another 15% in value in 2004, with a market value over $1 billion.NW