Japan Sake Market Size, Share,Industry, Forecast and outlook (2024-2031)

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.

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Market Dynamics

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.

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Segment Analysis

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.

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