Cider/Perry in Japan

PRE-COVID-19 PERFORMANCE

Mercian Corp makes strong entry in 2019 with cider/perry flourishing thanks to popularity among younger adults

Cider/perry has a unique positioning between RTDs and wine. Consumers are attracted to its relatively natural positioning, fruity flavours, and low alcohol content, which tends to range from 3% to 5% abv.

Natural positioning of cider/perry suggests potential for craft movement

With a craft trend emerging in beer and spirits, there is also potential for the development of craft cider/perry, with growing consumer demand for locally-sourced and more natural products. As such, an increasing number of wineries and breweries are producing cider from locally grown apples from the country’s three main apple-growing regions – the prefectures of Aomori, Nagano and Yamagata.

Nikka Cider leads but faces increased competition as Mercian Corp enters the market

Nikka Whisky Distilling Co Ltd lost its dominance in cider/perry in 2019 following the entry of Mercian Corp, but it nonetheless retained a strong lead. The company’s Nikka Cidre brand benefits from a long-established presence in the market with it being favoured by women in their 30s to 50s.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of cider/perry are expected to fall by 35% in 2020 in light of the impact of COVID-19. This compares to an expected 2% rise forecast for 2020 during research conducted in May 2019, ie before the spread of COVID-19.

Recovery and opportunities

Cider/perry is targeted more at younger adults of a legal drinking age and as such is not expected to be as hard hit by the growing health concerns of Japan’s sizeable middle-aged and older population. In the short-term sales through the on-trade are expected to be given a boost in 2021 by the hosting of the rearranged Tokyo Olympics, while there are also likely to be large numbers if younger adults who are keen to start socialising in bars and restaurants again.

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