Japan Craft Beer Market Research Report By Type (Ale, Lager, Stouts), By Ingredients (Malt, Yeast, Enzymes, Hops) and By Distribution channel (Store, Non-store) - Forecast to 2035

Japan Craft Beer Market Overview

As per MRFR analysis, the Japan Craft Beer Market Size was estimated at 3.06 (USD Billion) in 2023.
The Japan Craft Beer Market Industry is expected to grow from 3.5(USD Billion) in 2024 to 13 (USD Billion) by 2035. The Japan Craft Beer Market CAGR (growth rate) is expected to be around 12.67% during the forecast period (2025 - 2035).

Key Japan Craft Beer Market Trends Highlighted

The Japan Craft Beer Market is growing fast because of several important market factors. One of them is local consumers’ growing demand for unique and regionally made beers which has resulted in the setting up of many microbreweries and craft beer manufactures within the country. Japan's traditional beer consumption is under threat as the youth seem to prefer artisanal drinks with diverse flavors and innovative brewing techniques. This trend is supported by increasing interest in the craft beer culture rightfully propelled by breweries offering educational tastings.

There is great opportunity in the Japan Craft Beer Market, particularly in metropolitan areas with an active nightlife and a more refined clientele ready to experience new flavors. Regional producers of craft beer can widen their market reach by teaming up with local eateries and taking part in food festivals to promote Japanese cuisine through specialized craft beer pairings. Also, with the worldwide tourism increase in Japan, craft beer producers can easily access the global market by introducing unique local beers that appeal to tourists and locals alike. A more recent development suggests that an increasing number of consumers are committed to environmental responsibility and organic production.

To appeal to eco-conscious consumers, many craft breweries are replacing traditional packaging with sustainable materials and sourcing ingredients from within the region. These initiatives, commonly associated with greener practices, create a more positive image of the region in which the beer is produced and provide a bridge to attract eco-minded drinkers. The changes being observed within the Japan Craft Beer Market stem from deeper shifts in cultural perception towards innovation, increased attention to quality, and local identity within beverages.

Japan Craft Beer Market Drivers

Rising Consumer Preference for Craft Beer

The consumer shift towards craft beer in the Japan Craft Beer Market Industry is driven by an increasing interest in artisanal and locally produced beverages. According to a survey by the Japan Craft Beer Association, approximately 60% of consumers aged 20 to 40 years reported a preference for craft beer over mass-produced options in recent years, highlighting a significant trend. This demographic is particularly influenced by the desire for unique flavors and the story behind the products, leading to an expansion in the craft beer sector.

In response, many established breweries, such as Asahi Group Holdings and Kirin Holdings Company, have started their own craft beer brands to cater to this growing market segment. These companies are also investing in Research and Development initiatives to innovate and create bespoke beer varieties that resonate with local consumers, ultimately driving the growth of the Japan Craft Beer Market.

Expansion of Craft Beer Festivals and Events

The rise of craft beer festivals and local beer events across Japan is acting as a catalyst for the growth of the Japan Craft Beer Market Industry. Events like the Tokyo Craft Beer Festival and the Osaka Craft Beer Weekend attract thousands of attendees, showcasing numerous local breweries and their offerings. Reports from the Japan Beer and Alcohol Manufacturers Association indicate that participation in these events has increased by 25% over the past five years, showcasing public interest in craft beer.

These festivals provide not only exposure for craft breweries but also promote tasting experiences that foster community engagement and customer loyalty. The involvement of established breweries as co-sponsors or participants in these events further reinforces their significance in enhancing the visibility of the craft beer segment.

Increasing Import of Quality Ingredients

The Japan Craft Beer Market Industry has witnessed an increase in the import of high-quality brewing ingredients, which enables local craft breweries to enhance their beer offerings. According to the Ministry of Agriculture, Forestry and Fisheries of Japan, the import of malt and hops has risen by approximately 15% in the past three years, which is crucial for the production of distinctive craft beers. The sourcing of superior ingredients from regions renowned for their brewing quality, such as Germany and the United States, contributes to the burgeoning reputation of Japanese craft beer on the international stage.

This trend fosters collaboration between local brewers and international suppliers, which ultimately supports innovation in brewing processes and product quality.

Supportive Government Policy and Regulations

The Japanese government's supportive stance towards the craft beer industry is fostering growth in the Japan Craft Beer Market Industry. Recent policy changes aimed at deregulating the liquor licensing process have made it easier for small breweries to enter the market. As per the National Tax Agency's report, the number of craft breweries in Japan has increased from approximately 200 in 2010 to over 500 in 2023, showing a clear impact of these favorable regulations.

Furthermore, government initiatives to support local businesses encourage innovation and funding opportunities for small craft breweries, making the environment conducive for market expansion. This legislative support plays a significant role in attracting new entrants and stimulating competition in the craft beer sector.

Japan Craft Beer Market Segment Insights

Craft Beer Market Type Insights

The Japan Craft Beer Market, particularly when examining the Type segment, showcases a diverse and dynamic landscape characterized by various styles, notably Ale, Lager, and Stouts. The craft beer revolution in Japan has been gaining noticeable momentum, driven by a multitude of factors including the rising consumer preference for unique and locally-produced beverages. As Japanese breweries continue to experiment with traditional brewing techniques injected with innovative flavors, Ales have emerged as a prevailing choice among craft beer aficionados. Ales, celebrated for their rich, fruity notes and complex profiles, resonate well with consumers seeking distinct taste experiences.

Lager, on the other hand, typically exhibits a lighter, crisper finish, aligning with the palate of a broader audience. This style appeals to consumers who are transitioning from mainstream beers to craft options, effectively bridging the gap between conventional and craft brewing. Furthermore, Lagers serve as a versatile option for various occasions, enhancing their popularity in social gatherings and celebrations across Japan.

Stouts, recognized for their deep, roasted flavors and creamy textures, cater to a niche market craving a more robust and heartier beverage. This segment has experienced increased attention as consumers seek diversity in flavors, particularly during cooler seasons when darker beers become more appealing. The craftsmanship involved in creating these varied styles adds an essential layer of value to the Japan Craft Beer Market, contributing to increasing consumer engagement and loyalty.

The market growth in Japan is attributed to continually evolving consumer preferences, with beer drinkers becoming increasingly adventurous in exploring new tastes and textures. Specialty craft beers that blend traditional Japanese ingredients, such as rice or local fruits, are carving a unique niche within this market, further diversifying the Type segment. Additionally, the influence of Japan's rich food culture synergizes with craft beer offerings, allowing for a remarkable pairing potential that elevates culinary experiences.

However, while the craft beer movement flourishes, challenges such as regulatory restrictions and market saturation persist. With an increasing number of breweries entering the market, standing out requires creativity and dedication to quality, ensuring that each Type segment maintains its distinct characteristics. Opportunities lie in leveraging local sourcing and sustainable practices, as these resonate well with environmentally conscious consumers who are increasingly favoring brands that prioritize sustainability alongside flavor.

Thus, the Type segment of the Japan Craft Beer Market encapsulates a vibrant range of offerings, each with its place in the evolving narrative of Japanese beer culture. As the country continues to embrace craft brewing, the significance of each Type within the market landscape will likely grow, presenting numerous avenues for growth and innovation in the coming years.

Craft Beer Market Ingredients Insights

The Japan Craft Beer Market is undergoing significant growth, with the Ingredients segment playing a vital role in shaping its dynamics. This segment, which encompasses Malt, Yeast, Enzymes, and Hops, enables breweries to create unique flavors and appeal to diverse consumer preferences. Malt serves as the primary source of fermentable sugars, crucial for the brewing process, and is often sourced locally to enhance the craft beer's character. Yeast is equally important, as different strains can impart distinct aromas and flavors, catering to the increasing demand for innovative brews among Japanese consumers.

Enzymes assist in optimizing the brewing process, leading to more efficient production and craft beer quality, while Hops provide bitterness and aroma that balance the sweetness of malt. The rising popularity of artisanal beers in Japan, driven by consumers' inclination towards premium and locally sourced products, has led to a heightened focus on these Ingredients. As the craft beer industry continues to expand, the demand for diverse and high-quality Ingredients is expected to strengthen, creating opportunities for local producers to establish their brand identities and contribute to the market's overall growth.

The Japan Craft Beer Market revenue is benefiting from these trends, with heightened interest in unique flavors and locally influenced brewing techniques shaping consumer choices and market statistics.

Craft Beer Market Distribution channel Insights

The Japan Craft Beer Market is observing significant growth within the Distribution channel segment, highlighting the importance of both Store and Non-store channels. While stores, including supermarkets and liquor shops, traditionally play a pivotal role in the distribution of craft beer due to their accessibility and ready customer base, the Non-store channel is experiencing a surge, driven by increased online shopping trends. The rise of e-commerce platforms has enabled smaller craft breweries to reach a broader audience, allowing consumers to conveniently access a diverse range of products directly from producers, enhancing the market's reach.

The evolving preferences of Japanese consumers, who are increasingly seeking unique and local craft beer options, are encouraging distributors to adapt their strategies accordingly. This shift not only supports community-centered breweries but also aligns with the overall consumer trend toward personalization and product variety. Additionally, the demand for craft beer in Japan is intricately linked to growing awareness of quality and artisanal processes, making the Distribution channel a crucial component in driving both market growth and consumer education.

Japan Craft Beer Market Key Players and Competitive Insights

The Japan Craft Beer Market has seen significant growth in recent years, propelled by a shift in consumer preferences towards locally produced and unique beverage options. This market is characterized by a diverse range of breweries, each offering distinctive flavors and styles that reflect the cultural heritage and culinary diversity of the region. With a solid foundation of both established and emerging craft breweries, competition in this sector is fierce. These breweries not only compete for market share but also cultivate brand loyalty by emphasizing quality, craftsmanship, and authenticity in their products. As a result, understanding the competitive landscape is crucial for companies aiming to thrive in this dynamic environment, as they navigate evolving consumer tastes and preferences while adhering to regulations and industry standards.

Asahi Group Holdings has established itself as a formidable player in the Japan Craft Beer Market, leveraging its extensive experience in beverage production and distribution. The company benefits from a well-developed supply chain and established distribution networks, enabling it to efficiently deliver its craft beer offerings to a wide audience. Asahi Group's strengths lie in its robust marketing strategies that resonate with consumers looking for high-quality, refreshing craft beer experiences. The company also invests in innovation to enhance its product lineup, adapting to changing customer preferences. The strong reputation and brand equity built over the years contribute to Asahi Group’s competitive advantage, allowing it to maintain a prominent position in the market while ensuring consistent growth.

Nagahama Brewing Co has made notable strides in the Japan Craft Beer Market, primarily recognized for its commitment to high-quality ingredients and artisanal brewing methods. The company specializes in producing a range of craft beers that reflect local flavors and seasonal ingredients, establishing a strong connection with the communities it serves. Nagahama Brewing Co enjoys a favorable market presence due to its dedication to craftmanship and sustainability in brewing practices. Its portfolio includes various styles, from IPAs to stouts, catering to diverse consumer preferences. The company's strengths further extend to its innovative spirit and willingness to experiment with new flavors, gaining attention in both local and regional markets. Although Nagahama Brewing Co may not have made significant mergers or acquisitions, its strategic collaborations with local farmers provide a unique advantage, promoting local agriculture and enhancing product authenticity in the ever-evolving Japanese craft beer landscape.

Key Companies in the Japan Craft Beer Market Include:

• Asahi Group Holdings


• Nagahama Brewing Co


• Coedo Brewery


• Brewery in Nara


• Kirin Holdings


• Shiga Kogen Brewery


• Hitachino Nest Beer


• North Island Beer


• Yokohama Brewing Company


• Swan Lake Brewery


• Sapporo Breweries


• Miyashita Brewing


• Nara Brewery


• Yamaguchi Beer


• Ginza Brewery

Japan Craft Beer Market Industry Developments

The Japan Craft Beer Market has seen significant developments recently, with growing consumer interest and a surge in local breweries. Companies like Asahi Group Holdings and Kirin Holdings are diversifying their portfolios by investing in craft beer brands to appeal to younger consumers who favor unique, locally made products. Notably, Nagahama Brewing Co and Coedo Brewery continue to thrive by emphasizing quality and innovation. In September 2023, Sapporo Breweries announced a strategic partnership with local craft breweries, aiming to expand distribution and product offerings across the country. 

There have also been acquisitions, such as those of Miyashita Brewing by Yokohama Brewing Company in August 2023, allowing for increased market share in the rapidly expanding craft segment. Additionally, market valuations are on the rise, anticipated to grow by 15% annually, reflecting the increasing popularity of craft beers among Japanese consumers, particularly as more people explore artisanal products. 

Over the last two to three years, initiatives to promote local Japanese ingredients in brewing have led to a surge in unique craft offerings, enhancing the overall landscape of the market.

Craft Beer Market Segmentation Insights

Craft Beer Market Type Outlook

• Ale


• Lager


• Stouts

Craft Beer Market Ingredients Outlook

• Malt


• Yeast


• Enzymes


• Hops

Craft Beer Market Distribution channel Outlook

• Store


• Non-store

 

Report Attribute/Metric	Details
Market Size 2023	3.06(USD Billion)
Market Size 2024	3.5(USD Billion)
Market Size 2035	13.0(USD Billion)
Compound Annual Growth Rate (CAGR)	12.67% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Asahi Group Holdings, Nagahama Brewing Co, Coedo Brewery, Brewery in Nara, Kirin Holdings, Shiga Kogen Brewery, Hitachino Nest Beer, North Island Beer, Yokohama Brewing Company, Swan Lake Brewery, Sapporo Breweries, Miyashita Brewing, Nara Brewery, Yamaguchi Beer, Ginza Brewery
Segments Covered	Type, Ingredients, Distribution channel
Key Market Opportunities	Rising consumer interest in craft, Expansion of local breweries, Unique flavor profiles and styles, Increasing craft beer festivals, Growth of e-commerce platforms for sales
Key Market Dynamics	Rising consumer preference for craft, Strong regional brewery presence, Increasing variety of flavors, Growing online sales channels, Health-conscious drinking trends
Countries Covered	Japan