Beer - Japan

The Beer market in Japan has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Japanese consumers have traditionally favored sake and shochu as their alcoholic beverages of choice. However, there has been a shift in customer preferences towards beer, particularly among the younger generation. This can be attributed to the growing influence of Western culture and the increasing popularity of beer as a social and recreational drink.

Trends in the market: Craft beer has emerged as a major trend in the Japanese beer market. Consumers are increasingly seeking unique and flavorful beer options, leading to the rise of small, independent breweries that focus on producing high-quality craft beers. This trend has been fueled by the growing demand for premium and artisanal products, as well as the desire for a more diverse and personalized drinking experience. Another notable trend in the market is the increasing popularity of low-alcohol and non-alcoholic beers. Health-conscious consumers are opting for these alternatives, which offer the same taste and experience as traditional beer but with reduced alcohol content. This trend has been further accelerated by the introduction of innovative brewing techniques and ingredients that allow for the production of low-alcohol and non-alcoholic beers without compromising on flavor.

Local special circumstances: Japan has a rich brewing tradition and is home to several well-established beer brands. The country's unique climate and water sources contribute to the production of high-quality beer. Additionally, the popularity of beer in Japan is also influenced by cultural and social factors, such as the tradition of drinking beer during festivals and social gatherings.

Underlying macroeconomic factors: The Japanese beer market has benefited from a favorable economic environment, with steady economic growth and increasing disposable incomes. This has led to a rise in consumer spending on leisure activities, including dining out and socializing, which has positively impacted the beer market. Furthermore, the government has implemented policies to promote the consumption of domestically produced products, including beer. This has created opportunities for local breweries to thrive and has contributed to the overall growth of the beer market in Japan. In conclusion, the Beer market in Japan has experienced significant growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. The rise of craft beer, the popularity of low-alcohol and non-alcoholic options, and the country's brewing tradition and favorable economic environment have all contributed to the development of the Japanese beer market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.