Price increases drive retail value growth and volume decline
In 2025, hot drinks in Japan saw an increase in retail value sales, driven by price hikes, despite a decline in retail volume sales. Coffee prices rose strongly, impacting consumption, although health-oriented products, such as those promoting gut health, continued to attract consumers. Nestlé Japan maintained its lead through innovation, while Kataoka Bussan excelled with functional variants. Supermarkets remained the primary sales channel, with e-commerce growing due to subscription services. The industry is expected to continue to see value growth moving forward, driven by products offering health benefits, with a focus on catering to Japan's ageing population.
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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
Price increases drive retail value growth and volume decline
KEY DATA FINDINGS
Retail value growth along with volume decline as costs and prices rise
Constant rises in coffee prices leads to frustrated consumers and declining volumes
The narrowing premiumisation window
Wellness in a chaotic world
Continued value growth expected as functional products highlight health benefits
Catering to the ageing population will be crucial
Nestlé Japan maintains its lead through constant product development
Kataoka Bussan sees dynamism thanks to its functional variant
Supermarkets remains the leading channel for sales of hot drinks
Convenience and subscriptions drive continued growth for retail e-commerce
Foodservice volumes continue to rebound
COUNTRY REPORTS DISCLAIMER
Coffee in Japan
KEY DATA FINDINGS
Significant prices rises drive volume decline but value growth
Price rises drive dynamic retail value growth but strong volume decline
Instant standard coffee drives value growth, as it sees the strongest price rises
Continued but more moderate rises in prices and volume declines
Adapting coffee products for Japan's ageing population
Navigating health trends in coffee
Innovations from Nestlé, such as caffeine reduction and sustainability efforts
UCC Ueshima Coffee also makes significant strides
Supermarkets leads the way in coffee distribution
Retail e-commerce maintains its rising trend thanks to new online services
Tea in Japan
KEY DATA FINDINGS
Although retail volumes continue to decline, value sales rebound to growth
Return to growth, although green tea fails to rebound
Fruit/herbal tea sees the strongest increase due to wide product range
Value growth anticipated, but shifts expected in consumption and product formats
Continued renaissance for tea in the foodservice channel
Rising health awareness set to boost demand for non-caffeinated and functional tea
Leading player ITO EN adapts to climate change with the launch of cold brew tea
Second-placed Mitsui Norin expands its product range
Supermarkets maintains its lead, but consumers value the convenience of retail e-commerce
Foodservice sees notable development due to changing trends
Other Hot Drinks in Japan
KEY DATA FINDINGS
Functional products and products targeting adults drive growth
Cocoa products surge in popularity: Meeting health demands drives growth
Malt-based hot drinks maintains a significant volume decline, but sales remain high
Cocoa craze and functional benefits to drive growth in other hot drinks in Japan
Adapting to Japan's declining birth rate: A shift in strategy
Nutritional supplementation likely to be a growing focus
Kataoka Bussan Co sees success with gut health product promoting year-round consumption
Morinaga & Co appeals to adults with the launch of a less sweet variant
Milo increases the iron content in its Milo for Adults to attract adults, especially women
Supermarkets extends its lead, as one-stop-shopping remains popular
Dynamism for retail e-commerce as consumers look for the best prices
COUNTRY REPORTS DISCLAIMER
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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This report originates from Passport, our Hot Drinks research and analysis database.
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