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Japan Wine 2009: Wine Market Overview
www.calwinexport.com by 2009-05-04   

Consumption trends

Throughout its several decades of steady expansion, the Japanese wine market has experienced at least six surges in consumption. One, the Beaujolais Nouveau boom that came in the late 1980s, continues to be an important seasonal event.

The most important boost to the industry came in the 1990s when a series of scientific reports touting the health benefits of red wine suddenly sparked consumer interest in red wine. In 1998, consumption more than doubled compared to 1996. However, this surge led to a buildup of excess inventories that took more than two years to clear, causing a subsequent bust—one that was exacerbated by stagnant to declining consumption. It was in 2005 that the wine market bottomed out and began a recovery. This was confirmed by 2006 trade statistics, which showed increased imports.

Currently, about 40 percent of Japanese women drink wine once a month compared with 31 percent of men (Japan Times). Sparkling wine was trendy in 2008, especially for women and at Christmas time. Restaurants are offering more varieties and reasonable prices, and some offer them by the glass.

Currently, about 40 percent of Japanese women drink wine once a month compared with 31 percent of men (Japan Times). Sparkling wine was trendy in 2008, especially for women and at Christmas time. Restaurants are offering more varieties and reasonable prices, and some offer them by the glass.

Since the 1990's, the average cost per liter has fluctuated, with prices that were sliding downwards, but are now increasing. Due to the strong yen, the cost per liter rose in 2007.

This reflects both deflations in the Japanese economy as a whole, and increasing sales of more moderately priced New World wines, as well as premium California wines.

Please note that while total spending on alcohol declined significantly over the last decade or so, wine consumption nearly doubled, expenditures on wine rose by close to 70 percent, and wine's share of the total alcoholic beverage market doubled - from 3.0 percent in 1994, to 6.4 percent as of 2003.

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