Japanese beer drinkers are highly loyal to their favourite brands, particularly domestic ones, according to new insights from CGA by Nielsen IQ. Beer has become the most popular alcoholic beverage in Japan this year, with consumption on the rise. Over 80% of Japanese beer drinkers report maintaining or increasing their beer consumption compared to the previous year, reflecting a boom in the country’s beer market.

As beer remains the drink of choice, it plays a key role in Japan’s hospitality industry, with more than half (51%) of consumers selecting beer when visiting bars, restaurants, and other venues. Japanese beer, in particular, stands out as the most frequently consumed, with 73% of surveyed consumers saying they drink it every or almost every time.

The dominance of domestic beer brands

Loyalty to domestic beer brands is a significant feature of the Japanese beer market. According to CGA’s on-premise insights, nearly a third (31%) of Japanese consumers prioritize familiar domestic brands when choosing beer, a notable contrast to only 10% of consumers who opt for craft beer and 17% who choose imported beer. This strong preference for well-known local brands presents a challenge for new and international entrants hoping to gain a foothold in the Japanese market.

Among beer drinkers, 65% prefer established Japanese beer brands, further highlighting the importance of brand recognition and consumer trust in driving purchasing decisions. These findings underscore the dominant position of legacy Japanese beer brands in the market.

Openness to new options in craft and imported beers

While Japanese beer drinkers exhibit a strong attachment to traditional brands, those who drink craft and imported beers are generally more open to trying new options. This trend presents an opportunity for innovation in the beer market, particularly for international brands or new craft beer entrants that can offer unique products to a growing segment of adventurous consumers.

Despite the strong loyalty to domestic beers, the data indicates that there is still potential for growth in Japan’s beer market. With an increasing number of consumers willing to explore craft and imported beers, brands that can offer distinctive, high-quality products are poised to tap into this expanding market.

Opportunities for innovation in the Japanese beer market

Kotaro Katayama, Senior Manager of New Business Development for CGA, emphasized the significance of understanding both consumer loyalty and the openness to innovation. "While Japanese consumers have a clear preference for heritage brands, craft and imported beer drinkers show a dynamic willingness to try new options," said Katayama. "This presents an exciting opportunity for brands and operators to innovate, shaping the future of beer consumption in Japan and driving sustained growth."

The continued strength of traditional beer brands combined with the growing interest in craft and international beers creates a vibrant landscape for future beer market growth in Japan. Understanding the preferences and behaviours of both loyal and exploratory beer drinkers will be key to success in this evolving market.