[Consumer Goods & Retail] APAC Cross-Border M&A Involving Japanese Companies: Review 2025 and Insight for 2026

In 2025, Japanese companies executed 32 cross-border M&A transactions in the consumer goods and retail sector across the Asia–Pacific region. Activity was shaped by acquisitions of food and daily‑necessity brands, expansion of wholesale and distribution networks, and selective withdrawal from underperforming markets. ASEAN remained the primary growth arena, particularly in food, personal‑care, stationery, and household‑product categories, while China and Myanmar saw rationalisation and market exits in response to structural shifts. The year underscored the growing importance of local brand acquisition and distribution‑platform access as Japanese corporates repositioned portfolios to capture expanding consumer demand across APAC.

Southeast Asia: Acceleration in Food, Daily Necessities, and Household‑Goods Investments

ASEAN demonstrated strong momentum in categories closely tied to everyday consumption. Rising populations and the expansion of middle‑income households created sustained demand in food, daily necessities, and stationery, encouraging Japanese corporates to expand localised brand portfolios and retail‑distribution platforms.

Thailand: Strengthening Food‑Brand Portfolios

Marubeni invested in Win Chance Foods, a liquid‑seasoning manufacturer, to strengthen its presence in the fast‑growing ASEAN food market. Demand for condiments and processed foods has proven resilient, and local‑brand platforms offer strong compatibility with Japanese investors seeking access to stable, high‑frequency consumption categories.

Vietnam: Large‑Scale Acquisition in Stationery and Household Goods

Kokuyo advanced a major acquisition by purchasing Thien Long Group—one of Vietnam’s largest stationery and office‑supply companies—for approximately JPY 27.6 billion. The transaction strengthened its position in a country where education‑related demand and everyday consumer‑goods consumption continue to grow. For Japanese investors, acquiring established distribution networks and category‑leading brands has become a direct route to market dominance.

These cases collectively illustrate how Japanese corporates increasingly rely on the complementarity of “Japanese brand value × local consumer platforms” to strengthen competitive positioning in ASEAN.

China: Selective Withdrawal from Brands and Retail Amid Intensifying Competition

China saw continued divestitures and restructuring, particularly across retail and apparel categories. Local e‑commerce platforms and aggressively priced domestic brands have sharply increased competitive pressure, eroding the viability of traditional brick‑and‑mortar‑centered business models. Several 2025 transactions confirmed a trend toward “selection and concentration” as Japanese companies withdrew from low‑margin operations or repositioned portfolios to focus on niche brands and digital‑native models. Future success in China will increasingly require specialisation, differentiated brand identity, and e‑commerce‑first strategies.

Hong Kong: Acquisition of Wholesale and Distribution Networks

Zojirushi Mahobin acquired Lin & Partners Distributors, a wholesaler and retailer of household goods, strengthening its sales network across Hong Kong and southern China. Hong Kong’s role as a regional logistics and trade hub, combined with its integration with cross‑border e‑commerce flows, makes wholesale‑network acquisition an efficient means of improving inventory turnover and accelerating market penetration.

Myanmar: Continued Withdrawals in Response to Market Instability

Myanmar remained a challenging market due to political uncertainty, logistics disruption, and weakened purchasing power. Several Japanese companies advanced partial or full withdrawals from consumer‑goods operations. Market exit or risk‑controlled continuation emerged as the realistic operating stance, with companies reassessing exposure to volatile frontier markets where demand visibility and distribution reliability remain limited.

Notable Transactions（2025）

Marubeni (Thailand): Invested in Win Chance Foods, gaining access to the expanding ASEAN processed‑food and condiment category.
Zojirushi Mahobin (Hong Kong): Acquired Lin & Partners Distributors, securing a wholesale and retail network across Hong Kong and southern China.
Kokuyo (Vietnam): Acquired Thien Long Group for approx. JPY 27.6 billion, strengthening its leadership in ASEAN’s stationery and office‑supplies market.

Structural Insights from 2025: Key Consumer‑Retail Themes

Four structural movements defined Japanese M&A activity in the consumer goods and retail sector.

First, investment in “everyday‑consumption categories” remained the strongest in ASEAN. Food, stationery, and household goods showed stable and scalable demand patterns, making them reliable targets for growth‑oriented acquisition.

Second, China required explicit choices between reinvestment and withdrawal. As the competitive landscape shifted rapidly, profitability varied sharply by segment, prompting selective divestiture and strategic repositioning.

Third, acquisition of wholesale and distribution channels became a fast and effective route for market penetration. Hong Kong’s distribution hubs, and ASEAN’s fragmented retail systems, offered opportunities to accelerate brand expansion through channel acquisition.

Fourth, consumer goods—particularly food, personal‑care, and daily necessities—continued to represent one of the most durable long‑term themes across APAC. Demographic momentum, rising purchasing power, and evolving consumption behaviour collectively supported sustained M&A relevance.

Syntax Partners, Inc.