Major food and beverage manufacturers in Japan are planning price hikes for 3,615 items from June onward, with the total number of items that will have seen increased prices set to reach nearly 8,400 this year on the back of the soaring cost of raw materials, according to a credit research firm survey.
“This summer looks to be a summer of price hikes,” Teikoku Databank said earlier in May.
The surveyed companies — 105 food and beverage manufacturers — have already raised prices for 4,770 items from January through May, covering a wide range of products from spices, vegetables, meat and fish to sweets and alcoholic drinks.
As of May 19, prices for 8,385 items have risen or are set to rise within this year, with the increase coming in at 12% on average.
Amid the soaring prices of wheat and cooking oil, the cost of 3,609 processed foods — items such as ham, sausages, cup noodles and frozen foods — will ultimately tick upward, with the average hike coming in at 13%, according to the survey.
For alcoholic beverages — including beer, wine, shōchū and chūhai cocktails made from shōchū or vodka — prices will rise by an average of 15% due to the soaring cost of malt and corn. The weaker yen has, meanwhile, resulted in an increase in the cost of wine and some other imports.
A rise in oil prices has also made plastic bottles more expensive as well.
More than 80% of the items set for price jumps from June onward will see the change take effect that month or in July.
One of the main causes of the jump in the cost of wheat is Russia’s invasion of Ukraine, which has significantly disrupted the global grain market, as well as supply chains that were already under strain because of the coronavirus pandemic.
Some companies have effectively raised prices by charging same the price for a smaller quantity — which Teikoku Databank calls a “stealth price hike.” But they may be forced to eventually raise prices sharply, the research company said.
The firm also warned that if raw material prices continue getting more expensive, then price hikes may continue into the fall and beyond.
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