Everyone's Drinking 'Highball'... Soaring Prices of Japanese Whisky Due to Supply Shortage

Exports Increased 22-Fold in 10 Years
Price Rise Due to Supply Shortage
Some Items Up 40% in 5 Years

As 'highball' made with whiskey becomes popular mainly among the MZ generation, the value of Japanese whiskey is also rising. With steady demand increasing not only in Korea but worldwide, the price of some premium Japanese whiskeys has surged by nearly 40% over the past five years.

On the 13th, Nihon Keizai Shimbun released an analysis of Nikkei POS (Point of Sale information management system) data collected from supermarkets nationwide.

According to the report, the average price at stores specializing in whiskey and brandy was 1,624 yen last October, about 20% higher than in October 2018, five years ago. Analyzing the purchase amount per person by category, the price increase was particularly notable for premium whiskeys from the two major Japanese whiskey brands, Suntory and Asahi (Nikka Whiskey).

Japan Establishes Japanese Whiskey Brands with High Quality

As highballs made with whiskey are becoming popular mainly among the MZ generation, the value of Japanese whiskey is also rising.
[Photo by Asia Economy DB]

Above all, the price increase in whiskey is driven by a supply shortage relative to demand. Since whiskey requires aging, it is difficult to increase supply all at once. This ongoing supply shortage is pushing prices up.

Moreover, as Japanese whiskey gains popularity not only domestically but also overseas, supply cannot keep up with demand. From the 2000s through the 2010s, Japanese whiskey made efforts to gain recognition abroad and establish high-quality Japanese whiskey brands.

As a result of these efforts, a major boom in Japanese whiskey occurred overseas in the 2020s, which quickly led to supply shortages. Over the past five years, Suntory Hibiki’s price rose about 40%, and Yamazaki’s by about 25%. Nikka Whiskey’s Yoichi and Miyagikyo, part of the Asahi Group, also saw price increases.

Additionally, Suntory, which produces Kakubin whiskey mainly used for highballs, raised the suggested retail price of Yamazaki by 7% starting from shipments in April last year, citing increased costs due to expanded production facilities; however, the market average price has already surpassed this.

Japanese Whiskey Export Value Increased 22 Times Compared to 10 Years Ago

As the highball boom surged, the price of Gakubin whiskey, which gained attention, also rose sharply in a short period. Suntory increased the price of Gakubin starting from shipments in July. The price is about 20% higher compared to October 2018.
[Photo by Asia Economy DB]

Whiskey’s popularity had been steadily declining since its peak in the early 2000s, but after COVID-19, the culture of drinking at home (home drinking) and drinking alone (solo drinking) has taken hold, leading to a rapid resurgence.

In particular, unlike in the past, whiskey has gained a reputation as a 'hip' drink, making it quite popular among younger generations. The trend of drinking whiskey mixed with soda water or tonic water, known as 'highball,' has also contributed to the whiskey boom.

With the highball boom, the price of Kakubin whiskey, which gained attention, also rose sharply in a short period. Suntory raised the Kakubin price starting from shipments in July. The price is about 20% higher compared to October 2018.

Meanwhile, according to Japanese Ministry of Finance trade statistics, whiskey export value reached 56 billion yen last year, 22 times higher than 10 years ago. In terms of volume, it increased sevenfold. Supply shortages are the same issue in Japan as well.