Wine in Japan

PROSPECTS

Ongoing polarisation in wine

Still light grape wine returned to total volume growth in 2017. However, the category was categorised by ongoing polarisation, with consumers preferring economy priced wines under JPY500 and mid-priced wines over JPY1,000 for ienomi (home drinking), a form of cocooning, rather than visiting on-trade channels.

Imported wines hold larger shares, while Nihon-wine can offer added-value

Chilean wine continued to strengthen its presence in both still light grape wine and sparkling wines at the end of the review period, with wines priced under JPY1,000 constituting its highest imported volumes. However, Chilean wines’ new consumers are migrating from other economy-priced wines, both imported and domestic, rather than being entirely new to wine.

Sake, the largest non-grape wine, continues to struggle

Sake, by far the largest non-grape wine category in Japan, saw the continuation of a trend of volume decline that persisted throughout the review period. Declining sales of sake can be attributed to an ageing consumer base and a failure to attract younger consumers.

COMPETITIVE LANDSCAPE

Suntory Wine International Ltd retains the lead

Suntory Wine International Ltd succeeded in maintaining its leading position in wine in 2017 with an 8% volume share. Suntory continued to strengthen its Nihon-wine brands in 2017, with a renewed design for the Shiojiri Winery brand, set apart from the company’s Japan Premium Series to highlight the unique taste derived from grape production and vinification in the area of Shiojiri city, in Nagano prefecture.

Hakutsuru holds top spot in sake

Hakutsuru Sake Brewing Co Ltd maintained the lead in sake in 2017 with an 11% volume share. The company continues to offer a wide range of products from an authentic premium range to economy daily variants.

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