Q1 Japan Beer Import Value Up 22% YoY
Whiskey Also Recovers Due to Home Drinking
[Asia Economy Reporter Koo Eun-mo] Japanese alcoholic beverages are showing signs of consumption recovery. This is attributed to the weakening momentum of the prolonged boycott against Japanese products and the increased consumption of alcoholic beverages in households due to COVID-19.
According to customs import-export statistics on the 22nd, the import value of Japanese beer in the first quarter of this year was $2.666 million, a 22.6% increase compared to the same period last year ($1.738 million). Compared to 2020, when the boycott was in full swing ($1.038 million), the amount has increased more than 2.5 times. The import volume also increased, rising from 1,235 tons in the first quarter of 2020 to 1,980 tons in the same period last year, and further to 3,068 tons in the first quarter of this year, a 54.9% increase year-on-year.
Japanese beer already showed signs of recovery last year. The amount of Japanese beer imported last year was $6.875 million, a 21.3% increase from $5.668 million in 2020. As Japanese beer imports hit their lowest point and began to rebound, Lotte Asahi Liquor, which imports Asahi beer, significantly reduced its operating losses from 12.4 billion KRW in 2020 to about 400 million KRW last year.
The recovery trend is not limited to beer. The import value of Japanese whiskey, represented by Suntory, in the first quarter of this year was $1.239 million, a 41.8% increase from $874,000 a year earlier. Compared to the first quarter of 2020 ($416,000), it has increased about threefold. On an annual basis, $3.157 million worth of Japanese whiskey was imported last year, more than doubling compared to $1.364 million in 2019.
The recovery in imports of Japanese alcoholic beverages is believed to be due to the prolonged boycott of Japanese products triggered by the 2019 Korea-Japan conflict, which has somewhat cooled the initial heated atmosphere of the boycott. Additionally, the increase in ‘home drinking’ and ‘solo drinking’ after COVID-19 has boosted demand for alcoholic beverages for home use, and the overall increase in sales of imported alcoholic beverages appears to have positively affected Japanese alcoholic beverages as well. In particular, whiskey’s long shelf life aligns well with the home drinking trend.
The industry expects the demand recovery for Japanese alcoholic beverages to continue for the time being. However, it is assessed that it will not be easy to restore sales to pre-boycott levels. An industry insider said, "Compared to when the boycott was at its peak, the recovery trend is clear," but added, "Unless a special occasion arises to promote goodwill between Korea and Japan, it will be difficult to restore sales to pre-boycott levels with home drinking demand alone."
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