Chilean wine under pressure in Japanese market as consumers shift towards more premium products
Japanese drinkers are shifting away from lower priced Chilean wine, which has long dominated the market, towards more premium products.
In addition to an ageing population, the Japanese wine market was also under threat from alternative alcoholic drinks, with the proportion of regular wine drinkers in Japan consuming sake, Champagne and cider having significnalty increased.
This is according to a report by Wine Intelligence, which revealed that still wine consumption in the country currently remains stable, with a majority (84%) of Japanese wine drinkers also drinking beer.
Another challenge facing the wine sector in the Japanese market is that younger consumers are not drinking wine as often as their older peers. However, the more open minded attitude of younger consumers could give the wine category a boost as they are more likely to try new styles of wine and have a wider repertoire of varietals.
Wine Intelligence also claimed that multi national sporting events, such as the 2019 Rugby World Cup and 2020 Summer Olypics presented an “exciting opportunity” for the Japanese wine sector.
At the same time the EU –Japan Economic Partnership Agreement (EPA) which was signed last month to do away with more than 90% of tariffs on Japan’s imports from Europe is expected to give trade in goods and services a boost.