![]() ![]() Meanwhile, whiskey racked up a 30% growth in gains, the largest percentage of all spirits. Buying alcoholic drinks via e-commerce has become a significant channel, and spirits had a 7% share in 2020. Although the retailers behind these sites lost sales from bars and restaurants, they improved sales to private consumers. ![]() The main success stories of this strategy were the already established online stores such as Shinanoya, a whiskey specialist site. Most businesses in the Japanese spirits market cut investment in bars and tried to shift towards online sales during the pandemic. The Japanese Spirits Market is Rapidly Adapting to E-commerce Let’s explore the notable developments our marketing experts have observed. Since the lift of pandemic-era restrictions in 2022, some burgeoning trends started to emerge in the spirits market. One pallet of expensive whiskey could result in the same sales revenue as a full container of cheap whiskey, using much few resources and effort. This is true even forsmaller companies, capable of offering the Japanese market a secure supply of high-quality whiskey.Īnother consequence of these supply chain problems is a push toward premiumization. This represents growth opportunities for new entrants. ![]() This situation is impacting historical relationships between leading spirits companies and their distributors. Following this, there has been a shortage of some products such as American whiskey, and some products have been discontinued. The result is that they prioritized their most profitable markets and allocated less stock to Japan. The surge in consumption post-restrictions meant that large overseas companies who have been working with reduced inventories during the pandemic can’t meet demand. ![]() Even if their beverage is bottled, produced, and ready to go, they face delays in transportin to businesses. Distilleries have had issues securing bottles or ingredients. Supplychain disruption means new opportunities in the Japanese spirits marketĪnother knock-on effect of COVID-19 is disruption to the supply chain. The initial whiskey trend has led light users to experiment more and start to understand the liquid profile. It will be driven by the trend towards premiumization (drinkers are discovering more brands and trying out more expensive bottles), broader occasions, broader whiskey consumer segments, and a broader repertory. Experts predict traction to continue accelerating this year. But this is slowly changing, and Japanese people are enjoying more kinds of spirits at home or during outdoor gatherings.ĭespite the pandemic, the overall whiskey market has grown consistently with a CAGR of 11% between 20. The exception being whiskey which has always had higher off-premise consumption. Consumers are traditionally unsure how to enjoy them properly at home. This would drive up total market sales by 10%.Īs for beer and RTD, consumers usually pick these up at the local store and drink them at home. Experts expect it to grow by 30% by the end of 2023 when compared with 2021. How the on-trade channel recovers will reshape the market. It dropped by 28% compared to 2020, and 25% when compared to 2019. Spirits do most business in Japan through the on-trade market, the landscape of which was drastically altered during the pandemic. An Updated Look at the Spirits Market In Japan So, spirits companies turned their attention to improving off-trade sales as a main strategy. The three main channels where drinking trends have historically formed in Japan (izakaya, casual bars/pubs, and nightclubs) were no longer a safe investment for suppliers. This caused major pub chains such as Watami to pause or even shut down their business. Bars and restaurants could no longer sell alcohol after 7 pm, which is the time consumers usually start drinking. The alcohol ban that was put into place between July and October 2021 dealt on-trade a particularly savage blow. The Japanese spirits market took a massive hit during the height of the pandemic due to the Japanese government’s mitigation policies. This article looks at the current hard spirits landscape and emerging trends and innovations to watch out for in 2023. New opportunities are overflowing and players in the spirits industry at home and abroad are looking to capitalize on them. But now restrictions are lifting and the market is recovering. The Japanese spirits market was shaken and stirred by COVID-19. ![]()
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