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Domestic beer brands dominate Japanese market, data shows
Japanese beer drinkers show strong loyalty to their favourite brands, particularly when it comes to domestic drinks, according to new data from CGA by Nielsen IQ.
Beer is booming in Japan this year, and is currently the country’s most popular alcoholic drink.
Consumption is up for beer drinkers in the country too. Over 80% of consumers have maintained or increased their frequency of beer consumption compared to last year, CGA data shows.
Beer is therefore a key focus in the Japanese hospitality industry, as more than half (51%) of Japanese consumers choose beer when visiting bars, restaurants, and other venue types.
Japanese beer stands out as the most regularly consumed beer, with 73% of people surveyed saying they consume it every or almost every time.
Japanese drinkers show a strong affinity for their favourite brands, particularly when it comes to those made domestically. This poses a challenge for newcomers trying to gain market share in the country. According to CGA’s on-premise insights, nearly a third (31%) of consumers prioritise their familiar brand when choosing Japanese beer, compared to 10% for craft beer and 17% for imported beer.
Beer drinkers in Japan are also more likely to choose well-known brands over new options. Two thirds (65%) of consumers who drink Japanese beers prefer established brands.
Conversely, craft and imported beer drinkers show a greater openness to exploring new brands.
Consumption rates across all beer types in Japan are also either maintaining or increasing compared to a year ago. This suggests that although some beer drinkers are brand and country loyal, there is still potential in the market for new and international brands to grow.
Kotaro Katayama, senior manager-new business development for CGA, said: “Our latest OPUS study highlights the importance of brand loyalty alongside the opportunities for innovation. Understanding these nuances is crucial for success. While Japanese consumers prefer heritage brands, the intrepid spirit of craft and imported beer drinkers towards new options presents a dynamic opportunity for brands and operators to innovate and shape the future of beer consumption in the Japanese On Premise, ultimately driving sustained growth.”
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