Alcoholic beverages market in Japan - statistics & facts
The alcoholic beverage industry is a major segment in Japanese beverage manufacturing and an important part of social life. Enjoyed at drinking parties (nomikai) with coworkers, clients, and friends, the market supplies consumers with a broad range of fermented and distilled drinks. Sake is a fermented rice wine and Japan’s national beverage. However, the beer market is leading the fermented drink segment, favored in casual drinking. Meanwhile, liqueurs, which also include mixed drinks like highballs according to liquor tax laws, dominate the distilled liquor segment. Carried by the popularity of chuhai, a highball using Japanese clear distilled liquor (shochu) as a base, liqueurs outperform beer by sales volume.
While these four brewers are undisputed in the beer segment, smaller ventures and family businesses in other segments limit their portfolios to core products and focus on establishing their signature flavor profiles. Distilleries in shochu manufacturing and sake brewers have successfully defended their positions against new market entrants. The wine market, however, is more fragmented, with imported brands joining in the competition.
The multi-brand strategy in Japan’s alcoholic beverage industry
Large holding companies established a century ago dominate alcoholic beverage manufacturing in Japan. Asahi Group Holdings, Kirin Holdings Company, Sapporo Holdings, and Suntory Holdings have expanded their brand portfolios vertically to include other food and beverage segments since their founding, which has anchored their position in the domestic food manufacturing industry.While these four brewers are undisputed in the beer segment, smaller ventures and family businesses in other segments limit their portfolios to core products and focus on establishing their signature flavor profiles. Distilleries in shochu manufacturing and sake brewers have successfully defended their positions against new market entrants. The wine market, however, is more fragmented, with imported brands joining in the competition.
