Spotlight on Beer in Japan: Lessons to be Learnt from a Unique Market?

Japan: a global beer market anomaly

Japan is something of an anomaly among global beer markets: a result of the combined effect of its regulatory, social and demographic environment. However, many of the challenges faced by mature markets around the world, primarily linked to saturation and maturity, are equally relevant in Japan, as are many of the trends seen globally in beer.

Total beer volumes in Japan

Total beer volumes in Japan have been in consistent decline since 2013. Consumer desire for healthier lifestyles, competition from other categories and changing consumption patterns are among the key factors behind this fall in sales.

Tax brackets for beer in Japan

Tax brackets for beer in Japan are currently linked to malt content. This has led to the development of “happoshu”; a lighter beer-style drink with a low level of malt. There are also“new genre” beers which are positioned as an alternative to standard beer and utilise crops other than malt. Expected changes to the tax system are likely to have a notable impact.

Beer volumes in Japan to fall

Overall beer volumes in Japan are forecast to continue falling up to 2021; however, there are opportunities to be found in niche categories. The rise of craft is generating renewed enthusiasm for diverse beer styles that have been, to date, less prevalent than the ubiquitous pilsner-style products. Non/low alcohol beer is also highly dynamic, and is being boosted further by ongoing innovation.