Kirin Holdings is expanding its health foods business in Asia Pacific, starting with Taiwan in 2025, as the Japanese beverage maker seeks to offset falling domestic beer consumption.
The company plans to introduce products containing its proprietary LC-Plasma bacterial strain through its newly acquired Australian subsidiary Blackmores. The move comes after Kirin purchased the health food maker for A$1.88 billion ($1.2 billion) in 2023.
Kirin CEO Yoshinori Isozaki said the company is also seeking regulatory approval to sell these products in Australia by 2026, with Thailand and Vietnam in its sights. The expansion leverages Blackmores’ strong market position in Asia-Pacific and its regulatory expertise.
The strategic shift reflects broader challenges in Japan’s beer industry, where sales volume has plunged 40% since 1994. Kirin aims to triple its health science revenue to ¥300 billion ($1.9 billion) by 2030, targeting operating margins between 10% and 15%.
To strengthen its position, Kirin recently took full control of Japanese skincare company Fancl. The company expects its health science division to post a ¥9.1 billion operating loss in 2024 due to investment costs, but Isozaki predicted a return to profitability by 2025.
Despite recent industry setbacks, including safety concerns over a competitor’s supplements, Kirin remains confident in the sector’s growth potential, particularly in Southeast Asian markets where beauty and health products show strong demand.
