Japan Sake Market - 2023-2030

Japan Sake Market - 2023-2030

Japan Sake Market reached US$ 1.21 billion in 2022 and is expected to reach US$ 1.67 billion by 2030, growing with a CAGR of 4.1% during the forecast period 2023-2030.

Sake, perceived as having a simpler fermentation process compared to some other alcoholic beverages, is sometimes viewed as a healthier option. This can appeal to consumers who are making more conscious choices about what they drink. Sake producers are responding to changing tastes by offering a wider range of products. Diversification with innovation in flavor and other criteria helps attract new consumers who might not have been interested in traditional sake.

The Japanese government has implemented initiatives to support the sake industry, such as promoting exports and assisting with production techniques. This can help sake producers compete in a global market. The Japan Sake and Shochu Makers Association announced that there will be a continuous increase in the growth of sake exports in 2022. The Japanese sake export reached a record-high of 47.5 billion Japanese yen in 2022, an 18% increase from 2021 and a 452% jump from 2013.

The total value of sake export reached 47.492 billion JPY, surpassing the previous year's data in 2022. In addition, the total volume of sake export achieved a record-high of 35,895 KL according to Trade Statistics of Japan. The top 3 export markets for Japanese sake are Hong Kong, China, and the USA. In 2020 the average export value per liter exceeded for the first time 1000 JPY with an average of 1109 JPY per liter exported Japanese sake.

Dynamics

New and Innovative Product Introductions

Sake producers are innovating with new flavors, sparkling varieties, and lower alcohol content sakes to appeal to younger consumers and changing preferences. For instance, Heiwa Doburoku Kabutocho Brewery, a new pub in Tokyo, is serving unique doburoku flavors made in-store alongside snacks. As of March 2023, in addition to plain, the pub offers about 10 other flavors, such as strawberry and hops.

The launch of a new product meeting consumer demand supports market expansion. In Japan, major players in the market are reformulating sake by reducing its alcohol content for healthy habits, changing the packaging, and making it more sophisticated to attract customers. For instance, Okuhida Brewery, a 300-year-old sake brewery launched a new sake brand in December 2023. The new product contains just 8% alcohol and was developed to meet the demand for the low alcoholic breweries in Japan.

New Approaches Taking Place in Japan Sake Market by the National Regulatory Bodies

Alcohol consumption in Japan, particularly among young people, has been steadily decreasing for the past 25 years. This has led to a decline in tax revenue from alcohol sales, which is a significant source of income for the government. To address this issue, the National Tax Agency launched the Sake Viva! Campaign in August 2022. This initiative targets young adults and aims to make drinking more appealing to them.

The Sake Viva! competition encourages young people to submit ideas for new alcoholic beverages or ways to make drinking more enjoyable and relevant to their lifestyles. This could involve promoting at-home drinking experiences or creating new types of drinks that cater to younger tastes.

Further, in 2023, the Japan Sake and Shochu Makers Association ramped up sake promotion locally and globally through events in Europe, Asia, and the Americas, partnering with sommelier associations and attending trade shows. It also took the initiative by participating in ProWein 2023 and enhancing the promotion of sake at international airports.

High Competition from Other Alcoholic Beverages

The Japan sake market is hindered by the presence of various other alternative alcoholic beverage options in the market. Beer, wine, and whiskey offer a wider variety of tastes, price points, and drinking occasions. This abundance of choices can make sake seem less appealing, especially to younger consumers who may be exploring different alcoholic beverages. Sake can be perceived by some, younger drinkers, as an old-fashioned drink associated with older generations.

Beer and many RTD options are readily available in vending machines, convenience stores, and supermarkets. Sake, on the other hand, might be less accessible, requiring a trip to a specialized store or a restaurant. While high-end sake can be expensive, some alternative beverages offer good quality at a more competitive price. This can be a deciding factor for budget-conscious consumers.

Segment Analysis

The Japan sake market is segmented based on type, age group, price range, distribution channel and application.

Increasing Consumer Preference Towards Clean Flavor Profile of Junmai

The Japan sake market is segmented based on type into ordinary sake, junmai, honjoro, junmai ginjo, ginjo and junmain daiginjo. Junmai sake dominated the higher market share due to its clean and pure flavor profile, which appeals to a wide range of consumers. It offers a good balance of taste and affordability compared to some premium types. Junmai sake is brewed using traditional methods.

Unlike some other sake types, junmai only allows rice, water, koji mold, and yeast, adhering to stricter regulations favoured by some consumers seeking a more traditional, authentic experience. The adherence to traditional brewing techniques and the purity of ingredients often make junmai sake highly regarded among sake enthusiasts and connoisseurs. According to the report of the National Tax Agency 202o, within the premium sake category, the share of junmai sake is increasing at a rapid rate.

Junmai sake is often associated with higher quality and craftsmanship. The focus on using premium rice and meticulous brewing processes contribute to the complexity of flavors and the overall character of the sake. The attention to detail and the commitment to traditional brewing methods can result in a product that is valued for its taste and quality.

Competitive Landscape

The major Japanese players in the market include Aramasa Co, Ltd., ASAHI-SHUZO SAKE BREWING CO., LTD., HAKUTSURU SAKE BREWING CO., LTD, Tatsuuma-Honke Brewing Co. Ltd, Kizakura Co., Ltd., SAWANOTSURU co, TAKARA SHUZO INTERNATIONAL CO., LTD., NIHONSAKARI CO., LTD., Kiku-Masamune Sake Brewing Co., Ltd. and Miyasaka Brewing Company, Ltd.

COVID-19 Impact Analysis

The COVID-19 pandemic had a moderate impact on the Japan sake market. Lockdowns and restrictions on restaurants hit sake sales hard. Sake is traditionally paired with meals, and with fewer people dining out, demand dropped significantly. Travel limitations and disruptions in international trade likely caused issues for sake exports and the import of brewing ingredients.

On the other hand, as people stayed home more, some may have shifted to at-home sake enjoyment, potentially boosting retail sales. The rise of online shopping has benefited some sake breweries as consumers turned to e-commerce platforms. Overall, the pandemic likely had a negative effect on the sake industry. However, some breweries adapted by focusing on online sales and targeting at-home consumption.

By Type
• Ordinary Sake
• Junmai
• Honjoro
• Junmai Ginjo
• Ginjo
• Junmain Daiginjo

By Age Group
• 20-40 years old
• 40-60 years old
• Above 60 years old

By Price Range
• Low
• Medium
• Premium

By Distribution Channel
• Hypermarkets/Supermarkets
• Specialty Stores
• Online Channels
• Others

By Application
• Commercial Use
• Home Use

Key Developments
• In December 2023, Okuhida Brewery, a 300-year-old sake brewery launched a new sake brand. The new product contains just 8% alcohol and was developed to meet the demand for the low alcoholic breweries in Japan.
• In January 2022, Tsunan Sake Brewery launched a new sustainable sake brand called Tsunan. This exciting line is all about celebrating and supporting their local community. Tsunan sake is a true terroir experience, crafted by local people using rice and water sourced directly from the Tsunan region.
• In August 2020, Sato Sake Brewery created a brand new blue sake, Seilan. It is. The product is Ginjo sake, made with the flowers of butterfly peas with a rice polishing rate of 60%.

Why Purchase the Report?
• To visualize the Japan sake market segmentation based on type, age group, price range, distribution channel, and application, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of agriculture tires market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Japan’s sake market report would provide approximately 78 tables, 73 figures and 225 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies