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The production value of traditional confectionery ("wagashi") in Japan amounted to *** billion Japanese yen in 2024. Wagashi refers to a wide array of small confections, initially hand-crafted according to an artistic or a poetic theme. Popular types of wagashi encompass predominantly rice flour or glutinous rice-based products such as stuffed glutinous rice cakes ("daifuku").

Tradition in the modern market

While traditional confections are an integral part of the Japanese cuisine, the industry is operating in a competitive market. Influenced by imported products and the growing awareness of advertised health benefits, major sweets manufacturers have set their focus on the domestic production of chocolate.
To keep up with emerging trends, wagashi manufacturers are combining traditional confections with popular flavors. Commonly available products include chocolate-filled, fish-shaped cakes ("taiyaki"), jam-filled pancakes ("dorayaki"), and strawberry-flavored mochi slices ("yatsuhashi").

Confectionery manufacturers in Japan

As chocolate is the top-selling product in the confection retail market, the success of sugar confection manufacturers overshadows the savory snack segment. Nonetheless, the growing popularity of rice crackers and savory snacks, such as potato chips, have been boosting sales at major manufacturers. Enterprises spearheading the rice cracker industry, such as Kameda Seika and Sanko Seika, have been operating successfully in the domestic market for more than half a century.