Non-alcoholic beverages market in Japan - statistics & facts
Driven by the popularity of tea and coffee, Japan has become the world's third-largest non-alcoholic beverage market. While marble-sealed bottles containing lemonade ("ramune") are iconic refreshers that have been taken up by popular culture, other commercially available beverages include mineral and value-added waters, carbonates, fruit and vegetable juices, and energy drinks. Soft drinks have overtaken the alcoholic beverages segment with a ten percent share of production value in food manufacturing. Although vending machines selling cooled or heated beverages are characteristic of Japan, classic brick-and-mortar stores remain the main retail channels.
Competitors such as Ito En and Kagome, however, built their portfolios around one market segment. Ito En established itself as a major RTD tea manufacturer, with green tea as its core product. Meanwhile, Kagome secured its position within the fruit and vegetable juice segment.
Finding the niche in the market
The demand for non-alcoholic drinks in Japan is covered by domestic brands, with only a minor share of mineral water, carbonated drinks, and juices supplied by imports. Large corporations like Suntory Holdings and Asahi Group Holdings follow a multi-brand strategy that covers several ready-to-drink (RTD) segments – mainly carbonates, tea, and coffee. Of these, one major international business that has successfully taken root is Coca-Cola. Coca-Cola Bottlers Japan is responsible for manufacturing and selling the multinational company’s brands in the Japanese market.Competitors such as Ito En and Kagome, however, built their portfolios around one market segment. Ito En established itself as a major RTD tea manufacturer, with green tea as its core product. Meanwhile, Kagome secured its position within the fruit and vegetable juice segment.
