Report Overview

Japan Whisky Market - Industry Trends & Forecast Report 2028

Japan Whisky Market was worth USD 5219.3 million in 2021 and is further projected to reach USD 9152.3 million by the year 2028, exhibiting a CAGR of 8.32% during the forecast period (2022-2028). The rapid expansion of the market is predominantly due to the number of taverns, pubs, restaurants, and brewers providing alcoholic beverages having increased dramatically in recent years. This is mostly due to increased consumer spending, product innovation, and expanding urbanization. Moreover, consumers today have more sophisticated palates than they did a year ago, everywhere in the country. They are continuously trying out new, premium alcoholic drinks like whiskey, wine, and others. The changing lifestyle and preferences of customers are elements that are driving the Japan Whiskey Market since the use of natural ingredients in alcoholic beverages improves their functionality and such goods are attracting a lot of attention from consumers.

Whisky - Overview

Any of a wide range of distilled alcoholic beverages prepared from a fermented mash of cereal grains and aged in wooden barrels, which are often made of oak, can be referred to as whiskey (or whisky). Corn, barley malt, rye, and wheat are the most widely utilized grains. Whiskey cannot have any flavorings added to it; it must only have a flavor that comes from the barrel it is aged in. In other words, whiskeys flavored with cinnamon, chocolate, root beer, etc. Moreover, whiskey contains a lot of polyphenols, a type of antioxidant found in plants that may reduce your risk of developing heart disease. Whiskey's polyphenols have been found to lower triglycerides, or blood fat, as well as "bad" cholesterol (LDL) and enhance "good" cholesterol (HDL).

Japan Whisky Market Forecast and Trends

Growth Drivers

Rising Popularity of Cocktail Culture

The growing popularity of cocktail culture and experimental mixology inspires people to try new alcoholic beverages. This scenario is thus popularizing the Japanese whisky market. Furthermore, the emergence of many whisky varieties in Japan and India has focused consumer attention on high-quality spirits produced in these nations. As a result of expanding awareness of different cultural alcoholic drinks, the market sees growing popularity of Japanese whisky across cultures. All these factors boost the growth of the Japan Whisky Market during the forecast period (2022-2028).

Largest Production Facility in Japan

Globally expanding bars and pubs have encouraged the use of uncommon and foreign alcoholic beverages, including Japanese whiskey, in commercial settings. The popularity of Happy Hours, which is being offered by many commercial restaurants, bars, motels, and breweries that serve alcohol, is increasing customer traffic. On the other hand, the consumption of Japanese whiskey in the residential sector is being driven by the growing popularity of home bars and interest in mixology. Moreover, because of the presence of Japan's largest manufacturing facility and considerable product penetration in the region, Asia Pacific is the largest market for Japanese whiskey. Non-Japanese sales of Japanese whisky are particularly strong in France, China, the United States, and the Philippines. While the product was once exclusively available in Japanese restaurants or karaoke bars, product penetration across multiple verticals has ensured market development.

Restraints

Stringent Laws and Expensive Manufacturing

The widespread use of alcoholic beverages may result in dependency, addiction, and health problems from overconsumption. Governments have been concerned about the rise in alcohol addiction among consumers. As a result, several governments have enacted strict laws and guidelines regarding the marketing and distribution of these goods. Moreover, Scotch whisky's high price, which is a result of its high manufacturing and storage expenses, also hinders the expansion of its market. Additionally, the market success of scotch whisky has been significantly impacted by the unfavorable health impacts of alcohol intake. Thus, it is anticipated that these limits will impede the expansion of the Japan Whiskey Market.

Impact of COVID-19 on Japan Whisky Market

The COVID-19 pandemic-induced lockdown and economic crisis have affected several markets including Japan Whisky Market. This resulted from the reduction in whiskey sales caused by the worldwide closure of several hotels, eateries, and liquor stores. The whiskey business has also seen a major decline as a result of a 65 percent decrease in global tourist spending and a decline in exports. Also, many suppliers experienced substantial resource constraints in their material supply and logistics chains throughout the year, which had a notable negative impact on their operations. However, the market, on the other hand, is improving and is likely to return to normal as the government's assistance grows. During the forecast period (2022-2028), the market is expected to rise due to the quickest recovery rates in some regions and rising alcoholic beverage sales. Which in turn anticipated to surge in the demand for whisky.  

Japan Whisky Market - By Application

Based on the application, the Japan Whisky Market is segmented into Commercial (Hotels, Restaurants/Bars/Pubs, Others) and Residential. Among these, commercial comprising bars account for the largest share in the Japan Whisky Market. A bar offers additional seating for satisfied and after-hours clients. Drink promotions during happy hour are one strategy for overcoming lulls. They are, at most, a surefire strategy to draw clients during a slow period. They also serve snacks such as chips or almonds, and some may even serve cuisine from a supper menu. All these factors propel the growth of the Japan Whisky Market during a forecast period (2022-2028).

Japan Whisky Market – By Distribution Channel

Based on the distribution channel, the Japan Whisky Market is segmented into On-Trade and Off-Trade. Among these, the off-trade segment holds the largest market share and is likely to maintain its dominance throughout the forecast period. The off-trade sales channel includes all retail locations such as supermarkets or hypermarkets, wine and spirits shops, and convenience stores. The vast majority of whiskey sales are generated by large retail chains. This is due to sales campaigns conducted in-store, such as price reductions, sampling of certain products, and so on. As a result, the off-trade category accounted for a bigger market share and is expected to maintain its position during the projected period for the global whiskey market.

Competitive Landscape

The leading market players in the Japan whiskey 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.

Recent Development

Scope of the Report

By Application

• • •  
• Commercial

1. Hotels
2. Restaurants/Bars/Pubs
3. Others

• Residential

By Distribution Channel

• • •  
• On-Trade
• Off-Trade

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. Japan Whisky Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Advancement/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. Japan Whisky Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Application
         1. Commercial
            1. Hotels
            2. Restaurants/Bars/Pubs
            3. Others
         2. Residential
      2. By Distribution Channel
         1. On-Trade
         2. Off-Trade
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of Covid-19 on Japan Whisky Market
8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
   1. Suntory Holdings Ltd.
   2. Nikka Whisky Distilling Co., Ltd.
   3. Chichibu Distillery
   4. Venture Whisky, Ltd.
   5. FLAVIAR
   6. Louisville Distilling Co. LLC
   7. Asahi Breweries Ltd.
   8. Hombo Shuzo Co Ltd
   9. Yoshino Spirits
   10. Other prominent players

9. Key Strategic Recommendations

*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1               Japan Whisky Market Segmentation

Figure 2               Japan Whisky Market Value Chain Analysis

Figure 3               Company Market Share Analysis, 2021

Figure 4               Japan Whisky Market Size, By Value (USD Million), 2018-2028

Figure 5               Japan Whisky Market Share, By Application, By Value, 2018-2028

Figure 6               Japan Whisky Market Share, By Distribution Channel, By Value, 2018-2028

Figure 7               Company Market Share Analysis, 2021

List of Tables

Table 1                 Japan Whisky Market Size, By Application, By Value, 2018-2028

Table 2                 Japan Whisky Market Size, By Distribution Channel, By Value, 2018-2028

Table 3                 Suntory Holdings Ltd. Company Overview

Table 4                 Suntory Holdings Ltd. Financial Overview

Table 5                 Nikka Whisky Distilling Co., Ltd. Company Overview

Table 6                 Nikka Whisky Distilling Co., Ltd. Financial Overview

Table 7                 Chichibu Distillery Company Overview

Table 8                 Chichibu Distillery Financial Overview

Table 9                 Venture Whisky, Ltd. Company Overview

Table 10              Venture Whisky, Ltd. Financial Overview

Table 11              FLAVIAR Company Overview

Table 12              FLAVIAR Financial Overview

Table 13              Louisville Distilling Co. LLC Company Overview

Table 14              Louisville Distilling Co. LLC Financial Overview

Table 15              Asahi Breweries Ltd. Company Overview

Table 16              Asahi Breweries Ltd. Financial Overview

Table 17              Hombo Shuzo Co Ltd Company Overview

Table 18              Hombo Shuzo Co Ltd Financial Overview

Table 19              Yoshino Spirits Company Overview

Table 20              Yoshino Spirits Financial Overview