Popular food delivery to benefit from Japan’s reopening: report
Returning tourists will avail services of nearby restaurants.
Popular food delivery services in Japan such as UberEats and Demae-can will benefit from the returning tourists as the market reopens its borders and loosens entry restrictions starting 11 October.
According to GlobalData, revival in tourists will increase use of cashless payments across restaurants including contactless credit cards and mobile payment services “as a measure towards reducing contact.”
“Japan is also optimistic about the return of tourists due to the weakening yen. However, the shortage of regular workers in the foodservice sector will likely impact its growth prospects despite an expected increase in inbound tourism in the coming years,” said Vishakha Rastogi, Consumer Analyst at GlobalData.
The overall Japanese foodservice sector, including on-premise consumption of food and drinks, will also benefit from reopening of borders.
“Together with the country’s initiative to encourage alcohol consumption, it raises hopes of a recovery in the consumption of beverages. For instance, on-premise consumption of soft drinks is expected to grow by 3.8% in 2022, following the 11.6% and 2.9% decline in 2020 and 2021, respectively. Moreover, on-premise consumption of beer is expected to post double-digit growth of 12.5% in 2022 and 14.3% growth in 2023,” Parthasaradhi Reddy, Consumer Analyst at GlobalData, said.
Reports showed that international tourists from South Korea, Hong Kong, Taiwan, Malaysia, Singapore, Thailand, and Australia can enter Japan without a visa.
However, they must present proof of COVID-19 vaccination or negative COVID-19 results before entering Japan.
