Japan’s Food Exports to the UAE Surge Amid Growing Demand for Premium Products and Halal Certification

Published Oct 4, 2024
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In 2023, Japan's agricultural, forestry, and fishery product exports to the UAE reached USD 9.9 billion (JPY 1.45 trillion), driven by the rising popularity of Japanese cuisine and products like halal-certified Wagyu beef and matcha. Government initiatives, including an Export Support Platform, help Japanese businesses navigate local regulations. With a focus on quality and authenticity, Japan is well-positioned to expand further in the UAE's premium food market, catering to its young and growing population.

Significant Growth in Japan's Food Exports to the UAE

In 2023, Japan's agricultural, forestry, and fishery product exports reached a record high of USD 9.9 billion (JPY 1.45 trillion), increasing by 2.9% year-on-year (YoY) owing to demand from markets, such as the UAE. Japan's traders are increasingly focusing on the Middle East region as an emerging market, characterized by its expanding population of 500 million in 2023 and a substantial youth demographic with an average age of 29 years.. With increased exports, the UAE's market for Japanese food products has expanded, with a 163.4% increase in Japanese restaurants from 2013 to 2022, according to the United Arab Emirates Full Service Restaurants Market Trends report. Japanese cuisine now represents about 3% of all restaurant types in the UAE, with average menu prices remaining stable. Cultural curiosity, health correlation to Japanese food, along with the booming tourist sector in the UAE contributed to the rising popularity of Japanese cuisine.

One of the important factors for Japanese food traders are standards and certificates. Halal certification is essential for Japanese exporters seeking to penetrate Muslim-majority markets, particularly in the Middle East and North Africa (MENA) region. It provides market access and consumer trust, ensuring products meet religious dietary laws. Japanese companies have adapted their products and business practices to meet halal requirements effectively, such as product reformulation, collaboration with certification bodies, and investing in training programs. Some examples include Japanese Wagyu beef, renowned for its marbling and tenderness, which has gained popularity in the UAE due to its premium quality. Japanese exporters have successfully adapted Wagyu production by obtaining halal certification to meet the demand in Muslim-majority markets. This ensures that the beef is processed by Islamic dietary laws, providing consumers with the luxury of a premium product and the assurance of religious compliance. Halal-certified Japanese Matcha, a finely ground green tea powder, has become popular in the UAE’s health-conscious market. Japanese exporters have worked closely with halal certification bodies to ensure that the production process, from cultivation to packaging, meets halal standards. This adaptation has opened doors for matcha products in the Middle East, where consumers are increasingly drawn to the health benefits of authentic Japanese Matcha alongside its halal assurance. Countries like Malaysia and Indonesia have established frameworks for halal certification, making it essential for exporters to comply with these standards. However, the need for a uniform global standard for halal certification poses challenges for businesses entering multiple markets.

Japan's Competitive Edge in the UAE's Premium Food Market

Japan's food exports face increasing competition from countries like France, Italy, Türkiye, and the United States. However, Japan maintains a competitive edge with a strong focus on quality, authenticity, freshness, and presentation, which are highly valued in the UAE market. The country's proactive approach to halal certification is crucial for accessing this Muslim-majority market.

Japanese food exports to the UAE and MENA region are expected to grow, driven by government initiatives and increasing consumer interest in Japanese cuisine. Japan aims to export JPY2 trillion (USD 14 billion) by 2025 and JPY5 trillion (USD 34 billion) by 2030, supported by specialized export support platforms, as announced by the Ministry of Agriculture, Fisheries, and Food (MAFF). Established in August 2024 in the UAE, the Export Support Platform is a framework with its main members being the Japan External Trade Organization (JETRO) overseas offices and diplomatic missions. From a locally-driven perspective, it provides ongoing support to exporters of Japanese agricultural, forestry, and fishery products, as well as domestic food-related businesses operating in overseas markets. The UAE is a critical hub for promoting Japanese food, with a growing population and a young demographic open to international cuisines.

Although Japanese restaurants only represent about 3% of all restaurant types in the UAE, they are synonymous with high standards of safety and hygiene, as well as a focus on fresh ingredients and aesthetic appeal. This positions Japanese cuisine as a premium dining experience in the region despite its smaller market share.

Japan excels in catering to specific consumer preferences through niche offerings such as wasabi, sake, matcha, and unique sushi varieties. These specialty items help Japan carve out a distinct presence in the competitive UAE market by appealing to consumers who seek authenticity and unique culinary experiences..

Japan's success in exporting premium food products to the UAE offers valuable lessons for other countries, including prioritizing quality and authenticity, niche marketing, and adapting to local regulations. By focusing on quality, niche marketing, and adherence to local dietary laws, Japan can continue to grow in the UAE's premium food market.

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