In 2023,the Japanese government reclassified the COVID-19 virus to Class 5. 2023 was a year when tourist spots, restaurant industries, etc., recovered and showed great vigor due to domestic recovery and inbound demand. However, in addition to the increase in raw materials and energy prices in recent years, a decrease in consumption due to rising prices caused by the weaker yen was observed, and the demand for vegetable oil has not yet reached full-fledged recovery. As a result, difficult conditions remained in 2023, with the quantity of vegetable oil consumed decreasing compared to 2022. Amidst these circumstances, the vegetable oil industry is working of fulfill its responsibility to continue the stable supply of safe and secure products. While the environment surrounding vegetable oil is severe as in the previous year (for example, there is uneasiness in regard to geopolitical situations in Ukraine and the Middle East, and increased demand for biofuel in response to the concept of decarbonization), expectations for premium oils and functional oils have increased even further due to changes in lifestyle and eating habits, a trend which has been accelerating in recent years. Consequently, the value of vegetable oil continues to increase. Furthermore, a joint venture for oil extraction was established as the result of the movement which started last year to strengthen the vegetable oil industry. The Top 10 News Stories in the Vegetable Oil Industry for 2023 reflect these conditions.
| Ranking | Item |
| 1 | Although grain prices have declined from the soaring prices experienced last year, they remain at a high level. Furthermore, the weakening yen has resulted in high costs, and the industry continues efforts to establish prices which match the value. |
| 2 | Sightseeing and dining out have recovered due to the recovery of people movement and inbound demand caused by reclassification of the COVID-19 virus to Class 5. However, the amount of vegetable oil used has decreased due to rising prices, and demand for commercial oil has not yet returned to pre-COVID levels. |
| 3 | Despite the decrease in vegetable oil consumed as the result of price revisions, the market size of the home use market is expected to remain the same due to the effect of increasing unit prices, added-value products such as paper packaging and “50% usage amount,” and premium oil. |
| 4 | Due to heat waves and drought along the Mediterranean coast, the oil-producing country Spain has had poor harvests for the second consecutive year, the import price of olive oil soaring, and domestic companies have revised product prices to maintain stable supply. |
| 5 | With the risk of global climate change, increasing population, and increasing energy demand, there is heightened competition between oil for food and oil for industrial use, and tight supply and demand for food continues. |
| 6 | Established Oilseed Processing Partners Japan, Ltd., a joint venture for oil extraction, in western Japan in order to secure sustainable international competitiveness and long term stable supply, and to solve environmental and social issues. |
| 7 | In the first half of 2023, each company's financial results are in a recovering trend due to the contributions of product price increases, etc. |
| 8 | There is a rapid increase in food prices. In 2023, the number of products that had their price raised was more than 32,000, which exceeded 2022. This trend has increased the consumer price index and established an attitude of defensive spending patterns. |
| 9 | Even as the consumption of rice oil increase in the home use market, the production of rice overseas decreased due to unseasonable weather, and each company has strengthened the procurement of raw materials in an aim for stable supply. |
| 10 | The Japan Fair Trade Commission and the Consumer Affairs Agency have certified and approved the Fair Competition Codes and Enforcement Rules in regard to the labeling of extra virgin olive oil. |
Note: The Top 10 News stories for the year are chosen by votes from 9 oil production industry trade paper companies and the chairman of the Japan Oilseed Processors Association.
