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Non-alcoholic beverages market in Japan - statistics & facts

The Japanese beverage industry can be broken into two distinct categories: alcoholic and non-alcoholic beverages. Alcoholic beverages typically include beer, wine, and spirits, such as whiskey, sake, or shochu. The non-alcoholic beverage industry shows a wider variety, encompassing liquid refreshment beverages (LRB) such as bottled water, carbonated soft drinks, energy drinks, fruit beverages, ready-to-drink (RTD) coffee and tea, sports beverages, and value-added water. Within the segment, RTD tea and coffee are responsible for the lion's share of soft drink sales in Japan.

Finding the niche in the market

While the Japanese alcoholic beverage industry is characterized by the prominence of large breweries, the soft drink market is more diverse in competition. The liquor manufacturers appeal to consumers with a broad product portfolio overstretching sweet drinks, mineral water, and other RTD beverages. Suntory Holdings emerged as the leader among the beer brewers, with non-alcoholic beverages and foodstuff being the holding company’s largest business segment.
In contrast, fellow competitors such as Ito En and Kagome followed a different market strategy by setting their focuses first and foremost on one market segment. Ito En established itself as a major RTD tea manufacturer, with the company’s bottled green tea products being a commercial success in Japan. Meanwhile, Kagome operates in the juice segment, with the company’s Kagome brand being well known for its fruit and vegetable juices.

Hot drinks as consumers’ favorite

Over the past years, tea and coffee specialties gained popularity throughout Japan. Listed as the most popular non-alcoholic beverages among consumers, the brewed beverages are commercially available as bottled RTD drinks. Coffee-based beverages are further sold as canned drinks as well.
To cater to the busy work-life in Japan, major distribution channels of soft drinks are not limited to store-based retailers. The wide availability of vending machines selling RTD beverages contributes a significant part to the success of soft drinks. Installed at street corners, in alleyways, and airports, among other places, beverages are sold either cooled or heated according to the season.

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Non-alcoholic beverages industry in Japan

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Green tea

Canned beverages

Beverage containers

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