Singapore sake sales experienced a notable year-on-year decline in 2023, with official export volumes from Japan down to just 64.9% of the previous year, according to the Japan Sake and Shochu Association. The figures mark a sharp reversal from 2022, when Singapore saw an explosive 393.8% surge in sake imports compared to the year before.

However, this drop is not necessarily a sign of waning interest. According to Patrick Sng, a leading sake importer, distributor, and retailer in Singapore, the fall is closely tied to a currency-driven surge in outbound travel to Japan.

Strong yen advantage fuels Japanese tourism

Speaking at ProWine Singapore this week during a presentation titled ‘Sip the Future: Expert Insights and Strategies for the Wine and Spirits Trade’, Sng pointed to a favourable exchange rate as the primary driver behind the trend. With the Japanese yen currently trading at around ¥1 to S$0.0087, Japan has become significantly more affordable for Singaporean travellers.

“People are choosing to enjoy their sake experiences directly in Japan,” Sng explained. “It’s not that demand is drying up — it’s that the consumption is shifting geographically.”

He noted that while volume exports to Singapore in 2023 were 76.1% of 2022 levels, value exports lagged even further behind at just 64.9%. This suggests that more affordable sake is being consumed abroad, rather than imported for local resale.

Premium demand remains strong despite slowdown

Despite the statistical downturn, Sng stressed that appetite for quality remains high. “We are more willing to pay for premium sake in Singapore,” he said, highlighting a consumer base that remains engaged and selective.

He also suggested that economic pressures may be impacting discretionary spending. With cost-of-living concerns on the rise in Singapore, many consumers are choosing to tighten their belts, especially when it comes to luxury categories like imported alcohol.

This could partly explain the steeper decline in value exports compared to volume, as buyers opt for mid-tier options or seek out value-for-money sake while travelling.

Regional growth shows wider appeal of sake

While Singapore’s sake imports may be cooling, the rest of the region is telling a different story. In particular, India has seen sake exports increase by over 900% in the last decade. The surge in interest has been driven by a growing number of Japanese restaurants in major cities such as Delhi, Mumbai, Bengaluru, and Chennai. Even tier two cities are showing signs of catching on to the trend.

This reflects a broader global curiosity around sake, as new consumers outside of Japan embrace its versatility and food pairing potential. Sng remains optimistic that Singapore’s sake sector will bounce back once the current wave of travel enthusiasm subsides and spending patterns stabilise.

For now, the story is less about declining demand and more about where that demand is being fulfilled — and in 2023, for many Singaporeans, that place was Japan itself.