Market Insights Consumer Alcoholic Drinks

Spirits - Japan

Japan

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to €36.8bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to €19.0bn in 2024.
Revenue, combined amounts to €55.8bn in 2024.
The revenue, at home is expected to grow annually by 1.46% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated in China (€135,700m in 2024).
In relation to total population figures, the average revenue per capita, at home of €300.10 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 2,656.0m L by 2024.
Volume, out-of-home is expected to amount to 387.9m L in 2024.
Volume, combined is expected to amount to 3,044.0m L in 2024.
The Spirits market is expected to show a volume growth, at home of -1.1% in 2025.
The average volume per person, at home in the Spirits market is expected to amount to 21.66L in 2024.

Key regions: United States, United Kingdom, Worldwide, United Kingdom, Australia

Definition:

The Spirits market includes alcoholic beverages that have been produced through the distillation of wine, fermented fruits, or grains. Due to the distillation process, the alcohol content of spirits is much higher than that of most wines and beers, typically ranging from 20% to 50% alcohol by volume (ABV).

Structure:

The Spirits market is divided into 8 markets:

The Whisky market encompasses spirits on a grain basis that have been aged in wooden casks for a duration of at least three years.
The Vodka market encompasses spirits based on grain and/or potatoes.
The Rum market encompasses spirits based on sugar cane.
The Gin market encompasses spirits based on juniper berries.
The Brandy market encompasses spirits based on fermented fruit juice.
The Tequila market encompasses spirits made primarily from the blue agave plant (Agave tequilana) in Mexico.
The Soju market encompasses the Korean distilled beverage, Soju, which is traditionally made from rice, barley, or sweet potatoes.
The Liqueurs & Other Spirits market encompasses all other spirits not previously mentioned as well as Ready-to-Drink (RTD) cocktails.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per liter, as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Diageo (e.g., Johnnie Walker, Smirnoff, and Tanqueray), Pernod Ricard, and Kweichow Moutai.

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Analyst Opinion

The Spirits market in Japan has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Japanese consumers have developed a taste for premium and high-quality spirits, such as whisky and craft spirits. This shift in preferences can be attributed to a growing appreciation for craftsmanship, as well as a desire for unique and exclusive products. Additionally, there has been an increased interest in healthier and more natural options, leading to a rise in demand for organic and low-alcohol spirits.

Trends in the market: One of the major trends in the Japanese Spirits market is the popularity of whisky. Japan has gained international recognition for its whisky production, with several Japanese whiskies winning prestigious awards. This has led to a surge in demand for Japanese whisky both domestically and internationally. Another trend is the rise of craft spirits, with small-scale distilleries gaining popularity among consumers who value authenticity and local production. Furthermore, there has been an increased focus on innovation in the Spirits market, with new flavors and unique packaging being introduced to cater to changing consumer preferences.

Local special circumstances: Japan has a rich cultural heritage when it comes to alcohol consumption, with traditional drinks like sake and shochu deeply ingrained in the country's history. This has created a strong foundation for the Spirits market to thrive, as consumers are already familiar with and open to trying different types of alcoholic beverages. Additionally, the country has a well-developed distribution network, making it easier for both domestic and international spirits brands to reach consumers.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the Spirits market in Japan. The country has experienced a steady increase in disposable income, allowing consumers to spend more on premium and high-quality spirits. Furthermore, the growing tourism industry has played a significant role in boosting the demand for spirits, as tourists from around the world seek to experience Japan's unique drinking culture. Additionally, the aging population in Japan has led to a shift in consumer preferences, with older consumers opting for premium spirits as a form of indulgence and enjoyment. In conclusion, the Spirits market in Japan is experiencing growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. As Japanese consumers continue to seek out premium and unique spirits, the market is likely to see further expansion in the coming years.

Methodology

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.