Alcoholic Drinks - Japan

The Alcoholic Drinks market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese consumers have a strong preference for traditional alcoholic beverages such as sake, shochu, and whisky. Sake, a rice-based alcoholic beverage, has a long history in Japan and is often consumed during traditional ceremonies and celebrations. Shochu, a distilled spirit made from various ingredients such as barley, sweet potatoes, and rice, is also popular among Japanese consumers. Whisky, both domestic and imported, has gained popularity in recent years, with many Japanese consumers developing a taste for high-quality and aged whiskies.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Japan is the increasing demand for craft beer. Craft beer, which is typically produced by small, independent breweries, has gained popularity among Japanese consumers who are looking for unique and high-quality beer options. This trend has led to the emergence of a vibrant craft beer scene in Japan, with a growing number of craft breweries and beer festivals. Another trend in the market is the rising popularity of low-alcohol and non-alcoholic beverages. With an increasing focus on health and wellness, many Japanese consumers are opting for lower-alcohol or alcohol-free options. This trend has led to the introduction of a wide range of innovative and flavorful non-alcoholic beverages in the market, including non-alcoholic beers, wines, and spirits.

Local special circumstances: Japan has a unique drinking culture, with many social and business interactions taking place over drinks. Drinking establishments such as izakayas and bars play a significant role in Japanese society, providing a space for people to relax, socialize, and build relationships. This cultural aspect contributes to the demand for alcoholic beverages in Japan.

Underlying macroeconomic factors: The Alcoholic Drinks market in Japan is influenced by several macroeconomic factors. The country has a stable economy and a high standard of living, which allows consumers to have disposable income to spend on luxury and premium alcoholic beverages. Additionally, the aging population in Japan has led to changes in consumer preferences, with older consumers often opting for higher-quality and premium alcoholic beverages. In conclusion, the Alcoholic Drinks market in Japan is driven by customer preferences for traditional beverages, such as sake, shochu, and whisky, as well as the growing demand for craft beer and low-alcohol/non-alcoholic options. The unique drinking culture in Japan and the country's stable economy also contribute to the growth of the market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.