Bankruptcies in Food and Beverage Wholesaling Return to Pre-Pandemic Levels, Exceeding 250 Cases for Three Consecutive Years

Teikoku Databank, Ltd. conducted an investigation and analysis of bankruptcy trends among businesses in the "Food and Beverage Wholesaling" sector.

SUMMARY

In the first half of 2026, there were 133 bankruptcies in the food and beverage wholesaling industry, putting it on pace to surpass the previous year's total (257 cases). This marks the third consecutive year that bankruptcies are expected to exceed 250 cases, returning to pre-pandemic levels. Factors contributing to this increase include rising costs of various materials and labor, as well as fluctuations in harvest and landing volumes due to climate change in the agricultural, livestock, and fishery wholesale sectors. With difficulties in passing on these costs, bankruptcies are anticipated to remain high, particularly among small businesses.

Collection Period: January 1, 2007 - June 30, 2026 Target: Bankruptcies with liabilities of 10 million yen or more, through legal proceedings.

Since 2022, bankruptcy cases have exceeded 100 per half-year.

In the first half of 2026, there were 133 bankruptcies in the food and beverage wholesaling industry (liabilities of 10 million yen or more, legal proceedings), an increase of 7 cases, or 5.6%, from the same period last year (126 cases). Annualized, this amounts to 266 cases, and since 2024, the number of bankruptcies has remained above 250 cases, consistent with pre-pandemic levels. Total liabilities amounted to 25.862 billion yen, an increase of approximately 40% from the same period last year (approximately 18.556 billion yen).

Notable bankruptcies in the first half of 2026 include Kitakokukara no Okurimono Co., Ltd. (Saitama, April 2026, Civil Rehabilitation Law, liabilities approx. 1.7 billion yen), which operated an e-commerce site for seafood, and Merrytime Foods Co., Ltd. (Tokyo, May 2026, Bankruptcy, liabilities approx. 1.2 billion yen), a wholesale dealer of processed seafood products.

By size, there were 59 small bankruptcies with liabilities under 50 million yen (44.4% of the total) and 62 cases with capital under 10 million yen (46.6%), indicating continued struggles for small businesses unable to pass on costs. However, in the first half of 2026, bankruptcies with liabilities of 500 million yen or more increased to 16 cases (10 cases in the same period last year), contributing to the rise in total liabilities.

Agricultural, Livestock, and Fishery Wholesalers Such as Fresh Fish and Meat Wholesalers Face Difficulties

Looking at detailed industry classifications, "Fresh Fish and Shellfish Wholesalers" saw 37 cases (24 cases in the same period last year), the highest number in the past 10 years for a half-year period, matching the second half of 2025. In addition to reduced landing volumes due to climate change, fish prices have risen due to increased global demand for seafood. However, sluggish domestic demand has prevented these price increases from being passed on to retail prices. "Meat Wholesalers" recorded 13 cases (13 cases in the same period last year), facing a shift in demand from expensive beef to cheaper pork and chicken, as well as supply issues due to African swine fever and avian influenza. "Vegetable Wholesalers" also remained at a high level with 21 cases (25 cases in the same period last year) due to significant price fluctuations caused by unfavorable weather.

Compared to "Food and Beverage Wholesalers," where product selling prices are relatively fixed, "Agricultural, Livestock, and Fishery Product Wholesalers," whose product prices fluctuate with market conditions, find it difficult to pass on costs, and struggles continue in sectors other than those mentioned above. Among "Food and Beverage Wholesalers," businesses handling daily necessities used in special sales and promotions, such as perishable goods, often face difficulties passing on price increases for these items compared to gift items or high-value products, leading to a deteriorating business environment for some companies.

The background to the high level of bankruptcies since the COVID-19 pandemic is the current situation where price increases for food are not being adequately passed on to selling prices. In recent years, various factors have contributed to price increases, including unstable harvest volumes and market prices for agricultural, livestock, and fishery products due to global warming and unfavorable weather, rising import costs for ingredients due to the weak yen, and increased costs for packaging materials and transportation. On the other hand, due to heightened consumer frugality, there is a shift towards cheaper products and a reduction in purchase volumes. This suppresses the ability to pass on price increases, leading to reduced profit margins in some cases and driving up bankruptcy numbers.

Concerns about further price increases for various materials due to the situation in the Middle East persist, indicating that the industry continues to face many uncertainties. A challenging business environment is expected to continue, particularly for small businesses, and bankruptcies are anticipated to remain at a high level going forward.