Sales value of drinking establishments in Japan 2012-2021

In 2021, drinking establishments in Japan generated sales amounting to approximately two trillion Japanese yen. Sales revenues from the drinking establishment segment peaked in 1992 at over 7 trillion yen and had since declined, eventually stabilizing at around 5 trillion yen. With the advent of the COVID-19 pandemic, the market size declined significantly in 2020 and further in 2021 to less than half of its value from 2019. Drinking establishments include a variety of shops, such as izakaya, bars, coffee shops, and nightclubs.

Change in consumer behavior

With the advent of the COVID-19 pandemic and the related restrictions issued by the Japanese government, consumer habits in gastronomy changed, moving away from dining out in favor of food delivery, as well as buying food at supermarkets and cooking at home. Despite this shift, the majority of consumers in metropolitan areas still used restaurants to a certain degree.

Karaoke at drinking establishments

Karaoke is commonly enjoyed in specialized karaoke boxes, but some restaurants in Japan have purchased or rented karaoke gear to offer customers the possibility to enjoy karaoke in the shop. Revenue generated from karaoke at drinking establishments forms an important segment of the karaoke industry. At the same time, it also fuels the karaoke machine distribution market, as software and hardware need to be purchased or rented.