Japan’s hotel, restaurant and institutional food service industry (HRI) achieved record high sales of ¥32.42 trillion ($295.2 billion) in 2016. Japan’s HRI market has experienced 5 consecutive years of growth. Growth in corporate earnings and increasing inbound tourism have contributed to the industry’s success in both 2016 and 2017. However, competition is intense and both Japanese consumers and foreign travelers demand high-quality food and beverages and unique eating experiences. This report highlights the major trends and industry changes. U.S. suppliers are well positioned to compete in many product categories, provided they are willing to adjust to market demands.