Wine in Japan

PRE-COVID-19 PERFORMANCE

Japan-EU Economic Partnership Agreement (EPA) comes into force in 2019

The biggest topic in wine in 2019 was the enforcement of the Japan-EU Economic Partnership Agreement (EPA). Previously, Japan imposed a tariff on European wine of either the lower tariff of 15% of the CIF (cost, insurance, freight) price or JPY125 per litre on still wine and JPY182 on sparkling wine.

Suntory Wine looks to attract younger consumers with new 7% abv wine

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 an established loyal base of middle-aged drinkers with relatively high personal consumption, but is struggling to attract new, and particularly younger adult consumers.

Chilean wine faces renewed competition while Takara looks to add fizz to sake

Asahi Breweries Ltd’s Santa Helena was the representative Chilean brand of wine in Japan during the review period with it seeing strong growth thanks to the favourable import taxes offered under the Japan-Chile EPA. However, following the enforcement of the Japan-EU EPA in 2019 European brands became more price competitive and this resulted in Santa Helena recording a decline in total volume terms in 2019.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of wine are expected to fall by 37% in 2020 in light of the impact of COVID-19. This compares to the 1% decline forecast for 2020 during research conducted in May 2019, ie before the spread of COVID-19.

Affected products within wine

With most grocery retailers remaining open during the state of emergency consumers have still been able to purchase wine through the off-trade. Nevertheless, online sales are expected to rise with some retailers and producers increasing their e-commerce offer in order to reach consumers who might be unwilling or unable to visit store-based retailers.

Recovery and opportunities

Sales of wine through the on-trade are expected to receive a boost in 2021 with consumer confidence about eating out set to improve. The hosting of the rearranged Tokyo Olympics in 2021 should also provide a boost to sales with large numbers of foreign visitors expected to arrive in Japan, many of whom will likely avail themselves of Japan’s foodservice options.

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