EXECUTIVE SUMMARY
Japan is a wealthy nation of 127 million people and a leading global exporter. In 2011, the country's gross domestic product (GDP) was US$5.8 trillion. However, the economy has seen uneven growth over the past decade, exacerbated by the earthquake and tsunami that hit Japan in March 2011. As a result, Japanese consumers have become frugal and very selective in their spending habits.
In 2011, the Japanese market for alcoholic drinks was valued at US$50 billion, but has seen little growth in recent years. This is largely due to reduced consumer spending on non-essential items, retailer price competition, and a declining population of drinkers. Beer, wine, and spirits are the major segments of the alcoholic beverages market. Only beer and ready-to-drink/high-strength premixes have grown since 2005, with 1.9% and 4.1% in annual volume growth, respectively.
While Japan's imports of alcoholic drinks reached a value of US$2.8 billion in 2011, Canada's exports to Japan have fallen substantially since 2005. Exports registered at US$3.0 million in 2010, less than half of their 2005 value, and were largely comprised of wine and spirits.
Sales volume of alcoholic drinks in Japan is expected to be flat from 2012 to 2016. In terms of market segments, only the ready-to-drink/high-strength premixes category is forecast to experience, albeit modest, annual growth of 1.3%.
