Hot drinks in 2024: The big picture
In 2024, hot drinks in Japan is set to experience growth in retail current value terms, but a decline in retail volume terms, primarily due to rising unit prices. Major coffee manufacturers had already increased prices in 2021, 2022, and 2023.
2024 key trends
The more prolonged summers resulting from climate change have posed challenges for hot drinks in Japan. However, many manufacturers are seizing this opportunity to focus on iced beverages.
Competitive landscape
In 2024, Nestlé Japan Ltd is expected to maintain its lead in hot drinks in retail value terms, primarily due to its strong brand Nescafé Gold, which also commands the largest value share in overall hot drinks. In 2023, the company unveiled its new brand concept, “Make your World”, aimed at ensuring consumers can enjoy delicious coffee in a sustainable way through purchasing its global Nescafé coffee brand.
Retailing developments
During the pandemic, supermarkets experienced a surge in demand in hot drinks in Japan, as they became the go-to solution for convenient one-stop shopping. As the pandemic subsided, this heightened demand has diminished; however, supermarkets is still poised to remain the largest distribution channel for hot drinks in Japan in value terms in 2024.
Foodservice vs retail split
In 2024, volume sales of hot drinks in the foodservice channel are expected to record growth thanks to the gradual recovery of footfall at cafés and specialist coffee and tea shops. However, foodservice volume sales in this year are not expected to return to the same level as in 2019 (pre-pandemic), as more people are working from home compared with pre-pandemic, and the demand for business meetings or trips to foodservice outlets has continued to be lower.
What next for hot drinks?
Retail volume sales of hot drinks in Japan are projected to experience a steady decline over the forecast period, primarily due to the ongoing decrease in the birth rate and, consequently, the population. Japan’s birth rate has been on a downward trajectory for decades, and the pandemic further exacerbated this trend, as many women opted not to conceive due to concerns over infection and economic uncertainty.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Japan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks industry in Japan, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in Japan report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Hot Drinks in Japan?
- To what extent are health considerations impacting consumption of Hot Drinks in Japan?
- What are the traditional preferences in Hot Drinks in Japan? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in Japan?
- Which are the leading brands in Hot Drinks in Japan?
- How are products distributed in Hot Drinks in Japan?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in Japan
Hot drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
Coffee in Japan
KEY DATA FINDINGS
Shifting dynamics in coffee
Sales through foodservice post growth, but recovery remains slow
Nestlé Japan, UCC Ueshima Coffee Co, and Ajinomoto General Foods (AGF) lead coffee in Japan
Future trends in coffee
Potential market for health-conscious products
Increasing sustainability initiatives in coffee
Tea in Japan
KEY DATA FINDINGS
Trends in tea in 2024
Sales through foodservice post growth, but recovery is slow
ITO EN maintains its lead, while Mitsui Norin holds second position in tea in Japan
Consumer preferences and growth projections in tea
New consumption occasions will be explored to stimulate tea consumption
Health claims have strong potential
Other Hot Drinks in Japan
KEY DATA FINDINGS
Growth for chocolate-based flavoured powder drinks amidst decline in other categories
Expansion of the functional cocoa segment
Kataoka Bussan Co Ltd maintains its lead in other hot drinks in Japan, with Morinaga & Co Ltd in second
Chocolate-based flavoured powder drinks set to see the best performance
Positioning other hot drinks as natural supplementary products has potential to further expand the consumer base
Potential for nutritional support for older consumers could be further explored
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Hot Drinks research and analysis database.
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