Market Update
Japanese hot drinks
sector is forecast to
reach US$23.7bn in
2023, says Global Data
T
he hot drinks
sector in Japan is
forecast to grow
from JP¥2 trillion
(US$18.4bn) in 2018 to
JP¥2.5 trillion (US$23.7bn) in
2023, recording a compound
annual growth rate (CAGR) of
3.7 percent, says GlobalData,
a leading data and analytics
company.
Global Data’s report,
‘Japan Hot Drinks – Market
Assessment and Forecasts
to 2023’reveals that the
sector is led by the hot coffee
category, which held the
majority share of 68.2 percent
in value terms, in 2018. It
is followed by hot tea and
other hot drinks categories.
Furthermore, driven by the
growing demand for coffee
beans and instant coffee,
the hot coffee category is
forecast to record the fastest
CAGR of 4.1 percent during
2018–2023.
The per capita consumption
(PCC) of hot drinks is
significantly high in Japan
compared to the regional and
global averages. It stood at
4kg in 2018 and is expected to
grow further in the next fi ve
years to reach 4.4kg by 2023.
Mohammed Masiuddin
Shajie, a Consumer Analyst
at GlobalData, says: “Rising
disposable income of
Japanese consumers is driving
the per capita expenditure
on hot drinks, which is one
of the largest in the APAC
market.”
Nestle SA, Ajinomoto Group
and UCC Ueshima Coffee
Co Ltd are the leading
companies in the Japanese
hot drinks sector. Nescafe
remains the most popular
brand in the country.
The report also states that
the hot coffee category,
registered the highest per
capita consumption of 2.6kg
in 2018, which is sizably high
compared to hot tea and
other hot drinks (includes
chocolate and malt-based
drinks).
In terms of distribution
channels, on-trade
transactions accounted for
34.2 percent share of the
overall hot drinks sales in
2018. Hot coffee and hot tea
categories held a higher share
of on-trade sales compared
to other hot drinks.
Shajie concludes: “On trade
sales of hot drinks, especially
coffee will continue to
grow in Japan, benefitting
from stimulating influence
of Western culture and an
increasing number of chained
cafes and specialist coffee
shops in the country.”
Drink Asia
16
Nestle SA, Ajinomoto Group
and UCC Ueshima Coffee Co Ltd
are the leading companies in
the Japanese hot drinks sector.
Nescafe remains the most
popular brand in the country.
March-April 2020