Business Opportunities Expanding with the Food Functional Claims System ③ ~Prospects and Challenges for the Functional Claims Food Market Under the New System~ Part 1
Kunihiro Nishizawa
Salta Press Co., Ltd.
Takizawa Naho
Dentsu Inc.
On April 1, Japan's new functional food labeling system came into effect. This major revision, the first in 44 years, raises questions: How will the Japanese market change? What new business opportunities will emerge? Members of Dentsu Inc. Healthcare Team interviewed experts.
How should related industries like food, beverages, and distribution approach the new functional food labeling system? Furthermore, with consumers' health consciousness increasingly high, what should communication strategies and business directions look like? We asked Kunihiro Nishizawa of Nikkei BP, former editor-in-chief of Nikkei Health and an expert on the functional food labeling market, about future prospects and challenges.
Food and beverage manufacturers' responses will vary based on their existing research
Takizawa: First, let's discuss the movements and reactions within industries deeply involved in the functional claims system. Isn't this a major turning point for food and beverage manufacturers?
Nishizawa: I believe companies will fall into two groups: those that submit applications immediately after the system launches and those that won't utilize it right away. This will depend largely on the level of scientific evidence (evidence) they have accumulated.
Takizawa: So, rather than company size, the type of research conducted so far will determine their perspective on the system and their filing status.
Nishizawa: Precisely. However, companies without their own research data could partner with ingredient manufacturers who possess evidence. In fact, ingredient manufacturers will likely actively assist with labeling applications for products using their materials. Carefully observing these movements is another approach.
Furthermore, under the new system, companies can use the results of "research reviews" (systematic reviews) – which comprehensively evaluate and analyze research papers – as evidence, even without conducting their own tests. In other words, they can "piggyback" on existing research. Moreover, for ingredients widely consumed globally and studied in human research—like barley or tomatoes—evidence from overseas can be used as the basis for new systematic reviews. Conversely, if your business involves ingredients consumed almost exclusively by Japanese people, like seaweed or Satsuma mandarins, you'll be limited to domestic Japanese data.
Takizawa: This system places significant responsibility on the businesses, doesn't it?
Nishizawa: With Tokuho (Specific Health Use Claims), once an ingredient is approved, the approving country could potentially be held accountable. If someone questions the validity of the research paper used to obtain that Tokuho approval, the country must respond, including details of its review process. However, this new system allows private companies to make claims under their own responsibility. In exchange, the submitted evidence is made public. Consumers and competing companies can scrutinize the evidence submitted by the applying business at any time. Companies utilizing the new system must fulfill their accountability on their own when evidence is questioned.
Distribution: Store layout is a key theme. Unexpected movement in construction?
Takizawa: Beyond food and beverage manufacturers, are there other industries likely to see new movements triggered by this system? For example, the distribution industry?
Nishizawa: The distribution industry already fully understands that creating sales areas for highly functional ingredients generates strong consumer response. I've heard from a representative of one retail group that when they create a section labeled "Vegetable First," the coupon flyer usage rate is significantly higher than for regular campaigns. Another retail group created a "Superfood Corner," which also reportedly received a very positive response. For the retail industry, a crucial theme will be how to effectively promote foods with functional claims within their existing store layouts.
In unexpected areas, what about construction companies involved in plant factories? When labeling agricultural products with functional claims, you must guarantee a minimum content of the active ingredient. However, when grown in natural environments, factors like weather can affect stability. Plant factories, on the other hand, can almost certainly produce crops with a guaranteed minimum content level. Several construction companies are already operating plant factories, and this new system could provide a tailwind for them.
Takizawa: There might also be cases riding the wave of regional revitalization.
Nishizawa: For example, if a region wants to stabilize the growth of its specialty products and pursue functional claims, a business model could emerge to provide support, including financial backing. Local governments might also get involved, potentially offering incentives to attract such factories.
The interest of middle-aged and older women, who support the health food market, is in "beautiful skin."
Takizawa: From a media perspective, are there any areas, ingredients, or efficacy effects currently receiving attention?
Nishizawa: Women in their 50s to 70s are highly responsive to health foods. This age group reacts most strongly to skincare-related products. While "dark spots and freckles" top women's skin concerns until their early 40s, "sagging" takes the lead from their late 40s onward. Whether it's collagen, chondroitin, or glucosamine, the media will likely continue actively covering products that highly interest women over 50. If this demographic picks up a product, its popularity can potentially spread to those about 20 years younger. For example, the term "anti-aging" is used not just by those in their 30s, but sometimes even by those in their 20s.
Furthermore, measures against lifestyle-related diseases, bone health (represented by osteoporosis), and joint pain are also high-interest areas. After menopause, women experience a sharp decline in female hormone secretion, suddenly facing the same lifestyle disease risks as adult men. Functional claims that raise awareness of these risks would undoubtedly attract attention. Ingredients like collagen and glucosamine have been frequently highlighted, but if other familiar new ingredients emerge, women will likely reach for them. Satsuma mandarins, rich in beta-cryptoxanthin—believed to help prevent liver dysfunction and osteoporosis—are surely one such promising candidate.
What is the Food Functional Claims System?
The Food Functional Claims System began in April. Under this system, if scientific data supporting safety and functionality exists, manufacturers can submit it to the Consumer Affairs Agency and, "at their own responsibility," make claims about the functionality of their food products. Functional claim foods are expected to appear on store shelves as early as around June.
<Key Points of the New System>
1. Unlike the Specified Health Use Foods (SHUF) system, the government does not conduct safety or functionality reviews. The responsibility for the content and explanation of the scientific evidence, as well as ensuring there is no discrepancy between the scientific evidence and the labeling claims, lies with the manufacturer.
2.Notification to the Consumer Affairs Agency must be made at least 60 days prior to the sales date. Except for certain parts, all submitted materials will be disclosed on the Consumer Affairs Agency's website, allowing other businesses and consumers to verify the content.
3.All food products, including fresh foods, are covered. Therefore, participation is expected not only from food and beverage manufacturers but also from functional ingredient manufacturers, trading companies, farmers, and various other industries.
*Excludes beverages containing alcohol and foods that may lead to excessive intake of lipids or sodium.
<Key Points of Functional Claims>
Claims can be made about the effects on maintaining or promoting health.
For example, claims can be made for specific body parts, such as "maintains eye health" or "supports quality sleep." However, expressions implying treatment or prevention of diseases, such as "for people with diabetes" or "for people with high blood pressure," or expressions exceeding the scope of health maintenance and promotion, such as "hair growth" or "skin whitening," are not permitted.
Back Issues
【Business Opportunities Expanding with the Food Functional Claims System ①】
～Background of the New System's Establishment and Future Outlook～ Part 1[2015.04.23]
～Background of the New System's Establishment and Future Outlook～ Part 2[2015.04.24]
【Business Opportunities Expanding with the Food Functional Claims System ②】
～The Evolution of the U.S. Healthcare Market "20 Years Ahead" and Business Case Studies～ Part 1[2015.04.27]
～The Evolution of the "20 Years Ahead" U.S. Healthcare Market and Business Cases～Part 2[2015.04.28]
～The Evolution of the "20 Years Ahead" US Healthcare Market and Business Cases～Part 3［2015.04.29］
【Business Opportunities Expanding with the Food Functional Claims System③】
～Outlook and Challenges for the Expanding Functional Claims Food Market Under the New System～Part 1［2015.04.30］
～Outlook and Challenges for the Expanding Functional Claims Food Market Under the New System～Part 2［2015.05.01］
Was this article helpful?
Share this article
Newsletter registration is here
We select and publish important news every day
For inquiries about this article
Author
Kunihiro Nishizawa
Salta Press Co., Ltd.
Healthcare Journalist (Member of the Diet Journalists Association) / Editor. After working at Shogakukan, joined Nikkei BP in 1991. Appointed Deputy Editor-in-Chief upon the launch of Nikkei Health in 1998. Served as Editor-in-Chief of the magazine from 2005. Launched Premier Nikkei Health in 2008 and served as its Editor-in-Chief until 2010. From 2010 to 2014, concurrently served as producer for magazines including Nikkei Health and as Vice President of Techno Associates, a consulting firm jointly established by Nikkei BP and Mitsubishi Corporation. From March 2016, served as Senior Researcher at Nikkei BP Hit Research Institute. Left the company in March 2018 and became a Visiting Researcher at Nikkei BP Research Institute.
Takizawa Naho
Dentsu Inc.
Specialized Planner in Medical and Healthcare. Responsible for business/marketing strategy and planning/consulting for new business development related to food, pharmaceuticals, cosmetics, and health tech services.
Exploring the Wellness Survey of 10,000 PeopleHealthcare Keywords Revealed by the Wellness 10,000-Person SurveyHow Should Japanese Companies Advance DX in China, a DX Leader?Latest Healthcare Insights from the Wellness 10,000-Person SurveyHealthcare Trend Forecasts for a Healthy and Happy FuturePR-Driven Marketing "MARKETING+PRUS"
