Mature Japanese wine market ‘ripe for the picking’?

Japan may not rank high for its per capita consumption but it is an export cornerstone for many producer countries, offering some of the highest price points in the world. And that’s not its only advantage: according to Maxime Alazard at Business France, the Japanese market goes through cycles of peaks and troughs and it could be poised to experience a new uplift after plateauing for the past few years. Interest in the category is fuelled by a number of trends, including the development of a domestic wine industry, curiosity shown by female consumers, innovative packaging formats such as small bottles, cans and cartons, organic wines and Nolo drinks. Additionally, distribution of sales between on-premise and the off-trade is balanced and with many importers forced to exit the market over the past few years, those that remain tend to be resilient with very good payment credentials. Also, inventory accrued due to Covid has now worked its way through the system and ushers in a return to normality, believes Alazard.

Though a mature market, Japan does have its share of challenges, however, among which are its ageing wine demographic, market consolidation putting a squeeze on profit margins and the rise in the value proposition, with 70% of demand now focused on wine retailing for under 1,500 JPY ($10). On a more positive note, there are opportunities to meet Japanese demand for convenience, pairing wine with food and environmentally-friendly products. Organic wine exporters should be aware, though, that as of 1 October 2025, they will need to display the Japan Agricultural Standards logo to demonstrate compliance with local organic regulations.