Japan Whisky Market to Grow at a CAGR of 10.2% during Forecast Period
Published | 24 August 2022
Japan Whisky Market is gaining significant traction owing to the rising interest in cocktail culture, experimental mixology, as well as increasing socializing are some of the main factors influencing demand for and consumption of Japanese whiskey.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Japan Whisky Market was worth USD 721.8 million in the year 2021. The market is projected to grow at a CAGR of 10.20%, with revenues reaching around USD 1412.6 million by the end of 2028. Japan Whisky Market is booming because of high urbanization, rising disposable income, and increasing demand from young customers. Moreover, the consumption of spirits has surpassed that of beer and wine. Millennia have valued quality, authenticity, and provenance, and are willing to pay more for them. Furthermore, millennia have been known to experiment with their alcoholic beverages, which has resulted in the rise of 'cocktail culture.' This tendency has increased the use of whiskey as a component, moving the Japan whiskey industry forward. Additionally, drinking whiskey in moderation can be beneficial to one's health and lower one's chance of developing cardiac problems as well as the likelihood of developing high or low blood pressure, both of which are increasing demand for whiskey globally throughout the forecast period. However, it is anticipated that restrictions on whiskey production imposed by various governments in various locations may limit the market's expansion.
Japan's Largest Production Facility
Globally growing bars and pubs have promoted the usage of uncommon and foreign alcoholic drinks in professional contexts, like Japanese whisky. The popularity of Happy Hours, which are provided by numerous for-profit eateries, bars, lodging establishments, and breweries that sell alcoholic beverages, is boosting foot traffic. However, the popularity of home bars and interest in mixology is driving the consumption of Japanese whiskey in the residential market. The Asia Pacific is also the biggest market for Japanese whiskey due to the presence of Japan's largest manufacturing plant and significant product penetration in the area. Japanese whisky is especially popular outside of Japan in France, China, the United States, and the Philippines. Previously available only in Japanese restaurants or karaoke bars, product penetration across many verticals has secured market development.
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Growth of Cocktail Culture
People are encouraged to experiment with new alcoholic beverages by the growing popularity of cocktail culture and experimental mixology. Thus, this circumstance is increasing the demand for Japanese whisky. In addition, the introduction of a wide variety of whiskies in Japan and India has drawn consumer attention to the premium spirits made in these countries. The industry is witnessing a rise in the popularity of Japanese whisky among many cultures as a result of rising awareness of various cultural alcoholic beverages. These elements all contribute to the Japan Whisky Market's growth during the anticipated term (2022-2028).
Challenge: Tight Regulations and Expensive Production
Alcohol intake in large quantities can lead to dependence, addiction, and health issues from overconsumption. Governments are concerned about the rise in consumer alcohol addiction. Because of this, several nations have passed stringent regulations and legislation governing the promotion and distribution of these commodities. Additionally, the high cost of creating and storing Scotch whisky prevents the market from growing due to its high price. The negative health effects of alcohol consumption have also had a substantial impact on the market success of scotch whisky. As a result, it is projected that these restrictions will prevent the Japan Whiskey Market from growing.
Segmental Coverage
Japan Whisky Market – By Distribution Channel
Based on the distribution channel, the Japan Whisky Market is segmented into On-Trade and Off-Trade. The off-trade sector has the biggest market share and is expected to maintain its dominance over the projection period. All retail sites such as supermarkets or hypermarkets, wine and spirits shops, and convenience stores are included in the off-trade sales channel. Large retail chains account for the vast majority of whiskey sales. This is attributed to in-store sales campaigns such as price reductions, product sampling, and so on. As a result, the off-trade category accounted for a larger market share and is predicted to maintain its position in the global whiskey market during the forecast period.
Impact of COVID-19 on Japan Whisky Market
Japan's whisky market has been impacted by the economic crisis and lockdown brought on by the COVID-19 outbreak. This came about as a result of the decline in whiskey sales brought on by the global closure of numerous hotels, restaurants, and liquor stores. Due to a 65 percent decrease in international visitor expenditure as well as a drop in exports, the whiskey industry has also experienced a significant decline. Throughout the year, many suppliers also encountered significant resource limitations in their logistical and material supply chains, which had a detrimental effect on their operations. The market, on the other hand, is improving and is probably going to go back to normal as government aid increases. Due to the quickest recovery rates, the market is anticipated to grow throughout the forecast period (2022-2028).
Competitive Landscape
The leading market players in the Japan whisky market are Suntory Holdings Ltd., Nikka Whisky Distilling Co., Ltd., Chichibu Distillery, Venture Whisky, Ltd., FLAVIAR, Louisville Distilling Co. LLC, Asahi Breweries Ltd., Hombo Shuzo Co Ltd, Yoshino Spirits, and other prominent players. The Japan Whisky Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the Japan Whisky Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Japan Whisky Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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