Soft drinks in 2024: The big picture
After the price increases that began in 2022, many soft drinks categories failed to achieve off-trade volume growth in Japan in 2023, and this trend is set to continue in 2024. Meanwhile, categories that experienced growth due to the recovery in consumer movement in 2023, such as RTD coffee and sports drinks, are also set to see a negative turn in 2024.
2024 key trends
According to the Japan Meteorological Agency, the summer of 2024 (June to August) had average temperatures that tied with the record set in 2023, marking them the hottest summers since statistics began in 1898. Average summer temperatures in Japan have shown a consistent upward trend, indicating that this phenomenon is not merely a short-term fluctuation, but rather a long-term trend associated with global warming.
Competitive landscape
There has been a significant shift towards private label products in the Japanese market, and this is set to continue in 2024, particularly in categories in which consumers find it difficult to perceive differences in taste, such as bottled water. This has led to a noticeable decline in sales for established brands.
Retailing developments
In May 2023, the Japanese government reclassified COVID-19 from a high-risk Category 2 infectious disease to Category 5, aligning it with seasonal influenza. This change led to a relaxation of various preventive measures, and consumers therefore took it that the pandemic was over.
Foodservice vs retail split
Since the Japanese government reclassified COVID-19 from Category 2 to Category 5 in May 2023, the foodservice industry has continued its recovery from the long-lasting impact of the pandemic in Japan. Sales of soft drinks through the on-trade (foodservice) channel therefore increased in 2023, and this trend is set to continue in 2024, although at a slower rate.
What next for soft drinks?
Players in soft drinks in Japan are at the forefront of developing functional ingredients and launching new products each year, increasingly appealing to consumers by linking beverages to health management. This trend is expected to continue, with certain drinks being marketed as health-oriented products.
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Overview:
Understand the latest market trends and future growth opportunities for the Soft 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:
- Bottled Water
- Carbonates
- Concentrates
- Juice
- RTD Coffee
- RTD Tea
- Energy Drinks
- Sports Drinks
- Asian Speciality Drinks
If you're in the Soft 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 Soft 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 Soft Drinks in Japan?
- To what extent are health considerations impacting consumption of Soft Drinks in Japan?
- How are changing social attitudes and legislation (eg sugar tax) reshaping demand and consumption?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Soft Drinks in Japan?
- Which are the leading brands in Soft Drinks in Japan?
- What potential exists for multinational or domestic soft drinks companies to expand in Japan?
- How are products distributed in Soft Drinks in Japan?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How have home seclusion and social distancing measures following COVID-19 impacted sales of Soft Drinks?
- How are sustainability issues, such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, impacting the soft drinks industry?
- Where is future growth expected to be most dynamic?
Soft Drinks in Japan
Soft drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for soft drinks?
Fountain sales in Japan
Trends
DISCLAIMER
Bottled Water in Japan
KEY DATA FINDINGS
Prices rise, but demand for bottled water remains high
The carbonated/sparkling water trend starts to cool down
Suntory leads bottled water, but some consumers turn to private label
Demand for bottled water demand will remain high in Japan amidst earthquake fears and pandemic lessons
Suntory launches home water purification products
Rise in products fortified with dietary fibre
Carbonates in Japan
KEY DATA FINDINGS
Carbonates sees tough competition from bottled water and RTD tea
After growth in 2023, cola carbonates faces decline in 2024
Nostalgia trend shapes carbonates
Declining birth rate and health trend threaten carbonates in Japan
On-trade sales set to continue to recover, but fail to reach the pre-pandemic level
New concepts set to emerge as consumers value innovation
Concentrates in Japan
KEY DATA FINDINGS
Liquid concentrates faces notable decline as consumers return to outdoor activities
Craft cola and ginger ale remain popular
Asahi maintains its lead but other players make their mark
Liquid concentrates adapt as consumers shift towards convenience and creativity
Powder concentrates set to continue to decline, but may be marketed as eco-friendly
Health benefits will continue to be significant
Concentrates conversions
Juice in Japan
KEY DATA FINDINGS
Volume sales of juice decline as prices soar in 2024
Tomato juice thrives in a challenging market
Kagome maintains its lead in juice
Juice set to struggle as Japan’s population shrinks
Companies strive to discover the next hit ingredient
Health consciousness expected to have differing effects on demand for juice
RTD Coffee in Japan
KEY DATA FINDINGS
Heatwaves and price increases drive down sales of RTD coffee in Japan
New products featuring plant-based milk are rapidly emerging in Japan
Suntory regains its leading position in RTD coffee
RTD coffee faces further decline as consumers shift away from canned convenience
Functional RTD coffee is underdeveloped in Japan
Shift from cans to PET bottles and paper cartons to drive changes
RTD Tea in Japan
KEY DATA FINDINGS
Green tea continues to lead RTD tea
Price gap widens between national brands and private label products
ITO EN Ltd remains the top player in tea
Functional innovations expected to continue in RTD tea
Kirin plans to invest in RTD black tea
Tea Ade and Asian tea culture find success in RTD format
Energy Drinks in Japan
KEY DATA FINDINGS
Energy drinks faces crisis as prices rise and sales plummet
More consumers focus on caffeine management
Asahi Soft Drinks Co Ltd leads energy drinks in Japan
Energy drinks must adapt to an ageing consumer base and capture youth interest
Natural energy drinks underdeveloped in Japan
Relaxation drinks is expanding
Sports Drinks in Japan
KEY DATA FINDINGS
Sports drinks struggles as some consumers turn to cheaper hydration options
Importance of heatstroke prevention amidst intensifying competition
Major brands collaborate with the government and retailers to promote heatstroke prevention
Sports drinks faces further decline as health-conscious consumers choose alternatives
Shift towards functional beverages for health maintenance
Older people are a valuable target demographic
Asian Speciality Drinks in Japan
KEY DATA FINDINGS
Asian speciality drinks begins a slow recovery amidst price sensitivity
Asahi leads with a dominant share
Vinegar drinks remain important with Asian speciality drinks
Asian speciality drinks set to see negligible growth, but will have to compete with liquid concentrates
Asahi’s Calpis faces challenges in expanding beyond young consumer base
Vinegar drinks may attract younger consumers for their beauty benefits
The following categories and subcategories are included:
Soft Drinks
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- Carbonated Natural Mineral Bottled Water
- Carbonated Spring Bottled Water
- Carbonated Purified Bottled Water
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- Still Flavoured Bottled Water
- Sparkling Flavoured Bottled Water
- Functional Bottled Water
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- Still Natural Mineral Bottled Water
- Still Spring Bottled Water
- Still Purified Bottled Water
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- Regular Carbonates
- Reduced Sugar Carbonates
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- Regular Cola Carbonates
- Reduced Sugar Cola Carbonates
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- Regular Non-Cola Carbonates
- Reduced Sugar Non-Cola Carbonates
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- Regular Lemonade/Lime
- Reduced Sugar Lemonade/Lime
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- Regular Tonic Water/Mixers/Other Bitters
- Reduced Sugar Tonic Water/Mixers/Other Bitters
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- Regular Orange Carbonates
- Reduced Sugar Orange Carbonates
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- Regular Other Non-Cola Carbonates
- Reduced Sugar Other Non-Cola Carbonates
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- Liquid Concentrates
- Powder Concentrates
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- Not from Concentrate 100% Juice
- Reconstituted 100% Juice
- Coconut and Other Plant Waters
- Juice Drinks (up to 24% Juice)
- Nectars
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- RTD Coffee
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- Carbonated RTD Tea and Kombucha
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- Regular Still RTD Tea
- Reduced Sugar Still RTD Tea
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- Regular Energy Drinks
- Reduced Sugar Energy Drinks
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- Regular Sports Drinks
- Reduced Sugar Sports Drinks
- Asian Speciality Drinks
Soft Drinks
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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This report originates from Passport, our Soft Drinks research and analysis database.
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