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As the COVID-19 pandemic lingers, regional confectionery makers in Japan have started to review their business models — which often depend on demand from tourists — by developing new products or expanding their sales channels.

According to Tokyo-based research company Fuji Keizai Co., the domestic market of confectionery souvenirs in 2020 shrank 43 % from the previous year to ¥230 billion, as the pandemic led to a steep plunge in the numbers of leisure and business travelers domestically and all but eliminated demand from foreign visitors.

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