Wine in Japan

PROSPECTS

Changes to taxation

The revisions to Japan’s national liquor tax made in 2017 will involve increases to the rate of tax on wine in 2020 and in 2023. The increase to prices could present a further obstacle to wine as it struggles to attract younger adult consumers away from categories such as RTDs (though RTDs is also set to see an increased tax rate).

Need to target younger adult consumers

Both still light grape wine and non-grape wine face the significant challenge of finding a way to replenish their consumer bases. Still light grape wine has established a loyal base of middle-aged drinkers with relatively high personal consumption, but is struggling to attract new, and particularly younger adult consumers.

Nihon-wine development

October 2018 saw the implementation of new legislation relating to the classification of “Nihon-wine”, domestically produced wine made entirely from domestically grown grapes. The legislation allows Nihon-wine to label its place of production, grape varietal and year of harvest, while domestic wines using imported ingredients are required to show that their production involves the use of imported wines and the use of grape juice concentrate on their labels.

COMPETITIVE LANDSCAPE

Suntory continues share expansion

Suntory International Wine Ltd retained the lead in the fragmented wine category in 2018, as it maintained a trend of volume share growth that persisted throughout the review period. The company notably worked to strengthen its Nihon-wine brands towards the end of the review period.

Mercian Corp to expand domestic wine production

Mercian Corp contributed to Japanese producers’ growing commitment to the development of Nihon-wine in 2019. The company announced plans to open its third winery in Ueda, Nagano Prefecture in September 2019.

Takara Shuzo gains the lead in sake

Takara Shuzo Co Ltd overtook Hakutsuru Sake Brewing Co Ltd to gain the lead in sake in 2018. Takara Shuzo’s Shochikubai brand grew strongly in the final year of the review period.

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