Fonterra Seizes Growth Opportunity in Japan’s Dairy Market

Simon Tucker, Fonterra's Director of Global Sustainability, Stakeholder Affairs, and Trade, emphasized Japan’s growing demand for products supporting healthy living, particularly as the country faces an aging population. Fonterra's grass-fed dairy products are especially well-suited for products aimed at promoting healthy aging, a significant market opportunity in Japan.

Fonterra’s dairy protein ingredients are widely popular in Japan, with many products developed specifically for the market. Tucker highlighted the company’s close collaboration with customers and technical experts at Fonterra’s Research and Development Centre to meet the unique requirements of the Japanese market.

For example, protein-fortified drinks and yogurts containing Fonterra milk can often be found in 7-Eleven stores across Japan. Japanese consumers, known for their focus on health and wellness, are willing to pay up to 50% more for products that offer added health benefits. Fonterra’s proteins help maintain muscle mass, its dairy lipids support mood improvement, and its probiotics boost immunity and digestion—factors that are increasingly in demand among Japan’s aging population.

Additionally, Japan remains one of Fonterra's largest markets for cheese, which it supplies through its ingredients channel. As the world’s fourth-largest economy and New Zealand's fifth-largest export market, Japan presents ample opportunities for Fonterra to continue its focus on innovation, food science, and agriculture.

By leveraging its expertise in dairy nutrition and sustainable practices, Fonterra is well-positioned to meet Japan's evolving dietary needs and continue to grow its presence in this key market.