Non-alcoholic beverages market in Japan - statistics & facts
Japan is the world’s third-largest non-alcoholic beverage market, carried by the popularity of tea and coffee drinks. While marble-sealed bottles containing lemonade (ramune) are iconic refreshers that have spread with popular culture, other commercially available beverages include mineral and value-added waters, carbonates, fruit and vegetable juices, and energy drinks. Soft drinks hold a ten percent share of the production value in food manufacturing, overtaking the alcoholic beverage segment. Classic brick-and-mortar stores like supermarkets and convenience stores are the main retail channels, while the over two million vending machines stocking cooled or heated beverages are a distribution method characteristic of Japan.
Competitors such as Ito En and Kagome, however, built their portfolios around one market segment. Ito En established itself as a major RTD tea manufacturer, with green tea as its core product. Meanwhile, Kagome’s beverage business segment focuses on fruit and vegetable juices, which secure the company’s position against its competitors.
Finding the niche in the market
The demand for non-alcoholic drinks in Japan is covered by domestic brands, with only a minor share of mineral water, carbonated drinks, and juices supplied by imports. Large corporations like Suntory Holdings and Asahi Group Holdings follow a multi-brand strategy that covers several ready-to-drink segments – mainly carbonates, tea, and coffee. Coca-Cola is a major international business that has successfully taken root. Coca-Cola Bottlers Japan is responsible for manufacturing and selling the multinational company’s brands in the Japanese market.Competitors such as Ito En and Kagome, however, built their portfolios around one market segment. Ito En established itself as a major RTD tea manufacturer, with green tea as its core product. Meanwhile, Kagome’s beverage business segment focuses on fruit and vegetable juices, which secure the company’s position against its competitors.
