Japanese Restaurants in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: May 2024
ANZSIC OD5648Revenue
$1.9bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
13,996
Businesses
1,763
Wages
$XXX.Xm
Japanese Restaurants in Australia industry analysis
Australians' expanding palates have significantly influenced the Japanese Restaurants industry's performance. Consumers have sought diverse ethnic cuisines triggered by net migration and inbound tourism. Higher discretionary income has boosted consumers' purchasing power to spend on dining out, which has particularly inflated demand at the higher end of the pricing spectrum for Japanese restaurants. For example, the likes of Nobu and Tempura Hajime have benefited from Omakase’s growing popularity as they provide a chef-curated, luxury dining experience. With that said, demand for the low- to mid-pricing tier have risen in line with consumer pessimism and budget-conscious mindsets. In turn, revenue is expected to grow by an annualised 2.1% over the five years through 2023–24, to $1.9 billion. The COVID-19 pandemic brought unprecedented disruption to the industry, dulling its performance. Lockdowns and social-distancing requirements plummeted dine-in earnings for restaurants, but those that shifted towards takeaway could benefit from a prosperous home-delivery market. Post-pandemic inflation pressures encourage consumers to pull back discretionary spending, contributing to the market’s modest anticipated revenue growth of 0.9% in 2023-24.
Trends and Insights
- The industry has benefited from Australians' discerning tastes. Japanese cuisine’s aesthetic presentation, balanced flavours and health benefits have attracted consumers, as have urbanisation and multiculturism.
- Japanese restaurants can specialise in one product segment (like sushi or teppanyaki) or offer a diverse range. Hearty and reasonably priced dishes like ramen and rice bowls have become well-known specialties in Australia.
- Competition is high and on the rise, with many established Japanese restaurants vying for customer spending. This poses a risk to potential entrants and emphasises the need to establish a strong reputation for quality and authenticity from the get-go.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.1 % over the past five years, to reach an estimated $1.9bn in 2024.
Trends and Insights
The pandemic affected Japanese restaurants, prompting adaptation through takeaway and delivery
- The COVID-19 pandemic caused patronage limitations, ingredient shortages and inflated prices for Japanese restaurants. However, by adapting to options like takeaway, delivery and self-service ordering, some found profitable opportunities.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Positive external factors will boost Japanese restaurants’ trading landscape
- Higher net migration, a return to positive consumer sentiment and improved discretionary income will enhance consumers' purchasing power, encouraging more spending at Japanese restaurants.
Biggest companies in the Japanese Restaurants in Australia
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 |
|---|
There are no companies that hold a large enough market share in the Japanese Restaurants in Australia industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Sushi and sashimi, Noodles and Tempura and grilled dishes . Sushi and sashimi is the largest segment of the Japanese Restaurants in Australia.
Trends and Insights
Sushi and sashimi have gained popularity for their health benefits and variety
- Sushi consists of vinegared rice combined with various fillings or topped with various ingredients, including raw or cooked fish, seafood, seaweed or vegetables. Conversely, sashimi is typically made from thinly sliced raw meat or fish and can be accompanied by different garnishes.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Fast Food and Takeaway Food Services in Australia
- Chain Restaurants in Australia
Complementors
- Online Food Ordering and Delivery Platforms in Australia
- Catering Services in Australia
- Tourism in Australia
International industries
- Japanese Restaurants in the US
- Sushi Restaurants in the US
- Cafes and Restaurants in New Zealand
- Japanese & Sushi Restaurants in the UK
- Asian Restaurants in the UK
Table of Contents
About this industry
Industry definition
The industry comprises restaurants (independent, chain and franchised) that serve Japanese food to patrons. These establishments may also offer alcoholic and other beverages with the food. Restaurants may offer home-delivery services in addition to their physical locations.
What's included in this industry?
Sushi and sashimiNoodlesTempura and grilled dishesRice bowls and bento boxesIzakaya-style dishesCompanies
Purchase this report to view all major companies in this industry.
Related Terms
FOOD SERVICE FRANCHISE OMAKASEIndustry Code
ANZSIC 4511 - Japanese Restaurants in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The industry has benefited from Australians' discerning tastes. Japanese cuisine’s aesthetic presentation, balanced flavours and health benefits have attracted consumers, as ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Japanese restaurants can specialise in one product segment (like sushi or teppanyaki) or offer a diverse range. Hearty and reasonably priced dishes like ramen and rice bowls ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Purchase this report to unlock analyst insights.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition is high and on the rise, with many established Japanese restaurants vying for customer spending. This poses a risk to potential entrants and emphasises the need t...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Japanese restaurants must comply with Food Standards Australia New Zealand regulations. The code ensures the highest standards regarding cleanliness, food handling practices ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Japanese restaurant’s cost structures depend on factors like size and capital investment. Chains and franchises typically leverage economies of scale to lower costs. Average ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Japanese Restaurants industry in Australia in 2024?
The market size of the Japanese Restaurants industry in Australia is $1.9bn in 2024.
How many businesses are there in the Japanese Restaurants in Australia industry in 2024?
There are 1,763 businesses in the Japanese Restaurants industry in Australia, which has grown at a CAGR of 5.6 % between 2019 and 2024.
Has the Japanese Restaurants industry in Australia grown or declined over the past 5 years?
The market size of the Japanese Restaurants industry in Australia has been growing at a CAGR of 2.1 % between 2019 and 2024.
What is the forecast growth of the Japanese Restaurants industry in Australia over the next 5 years?
Over the next five years, the Japanese Restaurants industry in Australia is expected to grow.
What does the Japanese Restaurants in Australia include?
Sushi and sashimi and Noodles are part of the Japanese Restaurants industry.
How competitive is the Japanese Restaurants industry in Australia?
The level of competition is high and increasing in the Japanese Restaurants industry in Australia.
