Japanese beer enthusiasts display a marked preference for domestic brands, according to recent data from CGA by Nielsen IQ. This trend underscores a strong brand loyalty among local consumers, presenting both opportunities and challenges within the market.
The latest statistics reveal that beer remains Japan’s most popular alcoholic beverage, with consumption rates on the rise. Over 80% of Japanese beer drinkers have either maintained or increased their beer consumption compared to the previous year.
The Japanese hospitality industry is significantly influenced by this trend, as more than half (51%) of consumers opt for beer when visiting bars, restaurants, and various other venues. Domestic beer, in particular, stands out, with 73% of respondents indicating they consume it every or almost every time they drink beer.
This strong preference for domestic brands presents a challenge for new entrants attempting to break into the market. CGA’s on-premise insights highlight that nearly a third (31%) of consumers prioritize familiar Japanese brands when selecting their beer, compared to 10% who choose craft beer and 17% who opt for imported brands.
Additionally, two-thirds (65%) of Japanese beer consumers prefer established brands over newer options. In contrast, those who drink craft and imported beers exhibit a greater willingness to explore new brands.
Despite the strong brand loyalty among domestic beer drinkers, consumption rates across all beer types in Japan are either holding steady or increasing. This indicates a potential growth opportunity for new and international brands, even in a market dominated by domestic preferences.
Kotaro Katayama, Senior Manager of New Business Development for CGA, emphasized the importance of understanding these market dynamics. “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 market, ultimately driving sustained growth.”
The data suggests that while the Japanese beer market is heavily influenced by established domestic brands, there remains ample opportunity for new and international brands to make their mark by appealing to more adventurous consumers.
