Japan: Japanese Food Manufacturers Expand Overseas Amid Labor Crunch

Japan’s food manufacturing output has remained strong despite a long-term decline in domestic agricultural production. However, demographic challenges have made it difficult to secure sufficient labor in recent years, leading many companies to expand business operations overseas, including in the United States. These investments are targeted both at expanding sales in local markets and exporting finished products back to Japan. Reduced tariffs on agricultural imports under recent trade agreements is likely to spur Japanese food companies to continue investing overseas.

Japan: Japanese Food Manufacturers Expand Overseas Amid Labor Crunch