Japan: Over 80% of consumers maintain or increase frequency of beer consumption, study finds

The notable consumer preference for beer makes it a key focus in the Japanese hospitality industry. Beer’s continued dominance emphasizes the importance of developing an in-depth understanding of consumer behavior around one of the nation’s favorite drinks among brands, suppliers and operators looking to strengthen their market position. For these reasons, the latest findings from CGA by NIQ’s On Premise User Study (OPUS) reveal compelling insights into the consumption patterns and brand loyalty of beer drinkers in Japan’s On Premise sector, CGA reported on August 5.

With over 80% of consumers maintaining or increasing their frequency of beer consumption compared to last year, the market outlook remains positive. More than half (51%) of Japanese consumers choose beer when visiting bars, restaurants, and other venue types.

While Japanese beer stands out as the most regularly consumed beer (73% saying they consume every or almost every time), consumption rates across all beer types in Japan are either maintaining or increasing compared to a year ago. This ongoing stability and growth indicate a robust market outlook for beer brands and operators to capitalise on.

However, consumption rates across all beer types in Japan are either maintaining or increasing compared to a year ago, despite the increasing diversity of beer options. This ongoing stability and growth indicate a robust market outlook for beer brands and operators to capitalize on.

Japanese beer drinkers exhibit strong loyalty to their favorite brands, presenting a challenge for newcomers trying to gain market share. According to CGA’s On Premise insights, nearly a third (31%) of consumers prioritize their familiar brand when choosing Japanese beer, compared to 10% for craft beer and 17% for imported beer.

The data also reveal Japanese beer drinkers are more likely to choose well-known brands over new and interesting options. Specifically, 65% of consumers who drink Japanese beers prefer established brands, highlighting the challenge for newcomers in gaining market share. Conversely, craft and imported beer drinkers show a greater openness to exploring new brands. In addition, the study identifies a strong desire for local beer, especially when compared to other APAC markets. These combined factors present multiple opportunities for innovation and market expansion.

In terms of locking in existing loyalty, beer brands can deepen their emotional connection with customers by reinforcing their value through strategic marketing efforts highlighting heritage, quality, and consistency. On the other hand, the growing segment of craft and imported beer drinkers presents a unique opportunity to leverage this openness by introducing innovative products and marketing campaigns to appeal to this bolder demographic.

Overall, it’s clear a relevant balance between maintaining the loyalty of traditional consumers and capturing the curiosity of new customers can be instrumental in helping brands and operators expand market share, drive sales, and build consumer advocacy.

Kotaro Katayama, Senior Manager-New Business Development said: “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, ultimately driving sustained growth.”

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