Amid the "Reiwa Rice Riots": Japan's Food System and Consumer Attitudes ―Sustainability and Pricing Part 1―

The challenges of the food system, linking production to consumption, including rising agricultural prices and supply concerns that have gained attention in recent years, triggered by the "Reiwa Rice Riots." While the situation varies by country, the phenomenon of "high food prices straining livelihoods" is not unique to Japan.

To enable comparison under the same conditions as the Economic Sentiment Tracker survey conducted by global research firm Toluna across 13 countries in June 2025, Dentsu Inc. conducted a Japanese version of the survey (by Toluna) during the same period ( see survey overview here). This article introduces the latest consumer attitudes regarding food, comparing Japan with other countries in the first half and focusing solely on Japan in the second half.

<Table of Contents>
▼High Prices Are Not Limited to Japan

▼Rising Rice Prices Are Not Temporary; Food System Transformation Is Needed

▼Expectations for Companies to Support Agriculture and Connect with Producers

Price Hikes Extend Beyond Japan

According to a mid-June web survey, regarding the "economic outlook for the next three months," 50% of respondents in Japan answered "will worsen," while less than 10% answered "will improve." Other countries where the majority outlook was "will worsen" included the UK, France, the US, Canada, Singapore, Australia, and Thailand. Conversely, India was the only country where the majority outlook was "will improve."

Conducted in June 2025 (Japan: Dentsu Inc. "Economic Sentiment and Food Sustainability Survey"; other countries: Toluna "Economic Sentiment Tracker". See article end for survey details)

When asked "If you were to increase discretionary spending within the next three months, what would be the condition?" the top reason cited in many countries was "Once high prices subside." This reaffirms that high prices are not a problem unique to Japan.

Conducted in June 2025 (Japan: Dentsu Inc. "Economic Sentiment and Food Sustainability Survey"; other countries: Toluna "Economic Sentiment Tracker". See article end for survey details)

While the graph is omitted, the question asking about "changes in spending attitudes compared to last month" showed that in all 14 countries, only around 20% reported "no change in shopping habits," indicating that many people feel their shopping habits have changed.

Particularly significant differences by country were observed in the items "Switching to cheaper brands or substitutes" and "Cutting back on non-essential spending." Comparing these two items side-by-side, the proportion "Switching to cheaper brands or substitutes" was notably higher than the 14-country average in Thailand, Singapore, India, and the Philippines. Conversely, the proportion "Cutting back on non-essential spending" was notably higher in Japan and Australia.

Conducted in June 2025 (Japan: Dentsu Inc. "Economic Sentiment and Food Sustainability Survey"; other countries: Toluna "Economic Sentiment Tracker". See article end for survey details)

While the graph is omitted, when respondents who answered "spending increased" (41.0% on average across countries) were asked which category saw increased spending, "groceries" ranked first in every country. In Japan too, among the 92 respondents who reported "increased spending compared to last month," "groceries" (72.8%) stood out significantly higher than other categories, ranking first. This was followed by "dining out/takeout" (25.0%).

Overall, Japan's consumer sentiment appears to be: "People believe the economic outlook will worsen further and are consciously cutting back on non-essential spending while prices feel high, but switching to cheaper alternatives is not common. They feel their monthly food expenses, necessary for daily life, have increased." The next chapter will focus specifically on food and examine Japan-specific data.

The surge in rice prices is not temporary; a transformation of the food system is needed.

Here we examine Japan-specific survey results. Regarding the statement "The rice price surge and shortages are temporary and will soon subside," 72.4% of respondents disagreed. Regarding the statement "Japan's food system, from agricultural production to consumption, requires fundamental reform," 82.4% agreed. This indicates that many people feel a need for deep-rooted, not merely temporary, change.

From Dentsu Inc.'s "Survey on Economic Awareness and Food Sustainability," June 2025, Nationwide Japan, N=250

When asked about behaviors they "do regularly + occasionally" when buying food or eating out, 92.0% responded that "choosing discounted or sale items" applied to them. Other responses included "choosing products that earn the most points possible" (78.4%) and "choosing the cheapest option" (78.0%), indicating a strong cost consciousness.

However, 80.0% also reported "feeling the impact of international circumstances through shortages or high prices," 76.4% "choosing items mindful of food waste," and 73.2% "selecting ingredients or dishes with clearly marked origins." This confirms that many consumers are not only price-conscious but also concerned about the broader environment surrounding food, including its origin.

From Dentsu Inc.'s "Survey on Economic Awareness and Food Sustainability," June 2025, Nationwide, N=250

Expectations for companies supporting agriculture and connecting with producers

Looking at responses to each question in the graphs below, two sentiments stand out: "Protecting daily life (economically)" (blue box) and "Wanting to contribute to transforming Japan's food system" (red box). This suggests a coexistence of two mindsets: a long-term awareness of the need to support domestic agriculture with a sense of crisis, and a short-term desire to prioritize price due to economic anxiety.

From Dentsu Inc.'s "Survey on Economic Awareness and Food Sustainability," June 2025, Nationwide, N=250

Among these, "I have a favorable impression of companies tackling challenges in domestic agriculture" scored highest, with 85.2% agreeing. This suggests high expectations for companies to engage not just as buyers, but as drivers of new systems and transformation.

Whether using organic farming methods or domestic feed/fertilizers, producers cannot commit to transformation unless increased production costs translate into profits, such as through branding. The survey results also reveal that, given Japan's strong price consciousness, simply promoting "reduced environmental impact" does not easily lead to consumer choice.

Source: Dentsu Inc. "Economic Awareness and Food Sustainability Survey," June 2025, Nationwide Japan, N=250

Various consumer behavior studies and empirical experiments both domestically and internationally have pointed out that while consumers express a willingness to pay for sustainability, this often does not translate into actual purchasing behavior. Regarding "food products consumers would buy even if priced 1.5 times higher than their usual purchase price," the proportion willing to accept higher prices for products reducing environmental impact or considering biodiversity was just under 40% (green box).

However, over half respondents indicated they would pay 1.5 times more for "products meticulously quality-controlled by producers investing significant time and effort" (58.0%) and "products supporting producers sustaining Japanese food and local communities" (54.8%) (red box). Of course, "choosing the 1.5 times price range every day" is physically difficult. However, it appears that consumers are more accepting of food that is "priced higher for a reason," rather than simply "the same items becoming more expensive due to rising prices."

Next time, we'll move beyond food specifically to explore "pricing for sustainability-conscious products." From a marketing perspective, we'll introduce practical business application tips based on insights from economics.

[Survey Overview]
Dentsu Inc. "Survey on Economic Awareness and Food Sustainability"
Target Area: Nationwide Japan (weighted to match population demographics)
Respondent Criteria: Ages 18–79 (gender response options: "Male," "Female," "Other/Prefer not to say")
Sample Size: 250 people
Survey Method: Online survey
Survey Period: June 2025
Survey Company: Toluna
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Toluna "Economic Sentiment Tracker"
Target Regions: 13 countries (United States, Canada, Brazil, Mexico, United Kingdom, France, Germany, Italy, India, Singapore, Thailand, Philippines, Australia)
Respondent Criteria: Ages 18–79 (Gender response options: "Male," "Female," "Other/Prefer not to say")
Sample Size: 3,500 respondents (500 from the United States, 250 each from other countries)
Survey Method: Online survey
Survey Period: June 2025
Survey Company: Toluna
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