This article was initially published in the November issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
When visiting Japan’s on-premise channel, nearly two in five consumers are choosing spirits, according to CGA by NIQ’s ‘Japan Reach 2023’ survey. This preference is particularly seen for whisky/whskey (23%), liqueurs & other spirits (9%) and gin (8%).
Cocktails are also popular among consumers in the country’s bars. Topping the favourites list is the Highball (31%), followed by the Moscow Mule (23%), Gin Fizz (19%) and Screwdriver (15%) – all significantly over-indexing when comparing to the global consumer.
Among these trends, one captivating shift stands out: a surge in spending enthusiasm, especially within the spirits-drinking consumer segment. Nearly one-fifth of spirits enthusiasts plan to boost their spend on dining and drinking experiences in the next few months. Food & beverage came a close second to domestic travel, chosen by nearly half of the spirits enthusiasts surveyed.
These figures signify a growing eagerness to engage with spirits, with disposable income being increasingly channelled into the category when out.
More granular data paints an even more compelling picture of why spirits drinkers are an enticing consumer segment in japan. Firstly, they’re the frequent flyers of the on-premise channel, with higher rates of visitation compared with other imbibers – 6% of them go out daily, double the average of 3%. Furthermore, some 41% of spirits enthusiasts visit the on-premise weekly (+6pp versus the average visitor) and 79% at least once a month, providing ample opportunities for brands and operators to tap into.
But, there’s more.
The data reveals that the Japanese on-premise is on a clear trajectory in the direction of premiumisation, and spirits drinkers are leading the charge. Brands and operators should take note as the astounding 43% of spirits drinkers with an appetite for top-tier offerings – compared to just 30% of the general consumer base – offer a golden opportunity to maximise profits.
Adjusting to a shifting landscape
To fully embrace the opportunities offered by this segment, operators and brands need to tune in to its evolving preferences. Sipping spirits neat is no longer the norm. The landscape is gradually shifting, with consumers gravitating to mixed drinks.
As a result, what the spirit is mixed with gains greater importance, suggesting that brands should not only pay attention to what spirits consumers are choosing, but also which mixers will enhance their products. ‘Japan Reach 2023’ figures show that 82% of spirits enthusiasts now opt for mixed serves, with just 32% sticking to the classic neat pour.
By responding to these changing serve preferences, brands can enhance their products and cater to the evolving palate of the modern spirits drinker, unlocking a wealth of opportunities in the process.
Broader consumer habits should also be considered. One such trend is the quest for healthier beverage options, a wave that’s swept up 18% of all consumers. Once again, this trend is more pronounced among spirits enthusiasts, marking a remarkable ten percentage point surge year on year, catapulting from 13% in 2022 to 23% in 2023.
Brands can ride this growing wave of health & wellness by embracing product transparency and providing comprehensive ingredient information, or by offering no-/low-alcohol alternatives. For the growing cocktail segment, exploring mixers that are lower in calories or sugar can be an effective strategy.
Another compelling factor shaping consumer choices bears significant cultural significance – Japan’s spirits enthusiasts (21%) are increasingly drawn towards products of their own national origin (+4% versus 2022). This cultural shift presents an intriguing opportunity for domestic brands to resonate deeply with on-premise visitors.
International brands should pay attention to this trend by tailoring their approach to the needs of the Japanese market.
Other factors that are important to the country’s spirits consumers include brands that are trustworthy (30%) and their ‘go-to’ choice (25%). Consumers are looking for familiarity, which can be communicated through showcasing a product’s heritage and quality.
Brands and operators should also delve into the motivations behind on-premise visits. For a significant 30% of Japan’s spirits drinkers, the primary desire when out is to treat friends and family. This is a noteworthy shift from the 22% reported in 2022, signalling a growing inclination towards creating shared moments with loved ones.
By recognising these motivations, brands and operators can forge deeper connections with consumers, resulting in more meaningful and satisfying on-premise experiences.
This article was initially published in the November issue of Global Drinks Intel magazine. For details on how to subscribe, click here.
