Japan: Wine is first thought to have been introduced into Japan in the mid 1600s and the first domestic wine was made in 1870 in Yamanashi Prefecture. The wine industry in Japan is now valued at over NZ$5 billion (still and sparkling) per annum. There are 2,800 licensed liquor manufacturers in Japan, over 150,000 liquor distributors and around 14 million cases of wine imported into Japan annually.

Total imports of still wine into Japan are valued at over NZ$1 billion, with exports from New Zealand valued at NZ$7 million (based on Free on Board figures – year end October 2008). France, Italy and the US are the largest exporters to Japan and represent over 70 percent of all wine imports. The first six months of 2008 saw positive growth in volumes from New Zealand; up some 15 percent on the same period in 2007, although recent economic events have slowed that growth for the final quarter of 2008.  Total wine cases exported to Japan in 2007 from New Zealand were 56,000.

The late 1970s and 1980s in Japan saw the introduction of cheaper and sweeter imported wines which boosted demand. The sweet white wines then accounted for more than half of all wine consumption. Total consumption of wine in Japan peaked in 1998 and since then has decreased with the most noticeable decline in the consumption of domestic wines.

In the mid 1990s several reports raised consumer interest in red wine, because of scientific research on the associated health benefits of red wine due to the polyphenol it contains. Subsequently red wine become very popular and now has a larger market share than white wine. The perception of sparkling wine just for special occasions is changing and it has become more accessible and can now be found at more reasonable prices. Rose wine has yet to catch on in a major way with consumers.

Recent growth in wine sales (New Zealand included) has been driven by an increase in lower priced wines targeting the retail price range of JPY500 (NZ$10) to around JPY1,500 (NZ$30). Japanese domestic wines have traditionally been able to target the under JPY500 (NZ$10) price range but imported wines have also started to retail at similar rates and in the process lower average retail prices.

Eight billion litres of alcohol is consumed in Japan each year with only 6 percent of total alcohol expenditure by Japanese spent on wine (for an average consumption per adult of just over 2 litres per person). As with other products in Japan, cost performance is becoming increasingly important for consumers. The quality and safety of a product in Japan is almost a given at the time of purchase. The ability then to reach consumers and connect with a particular angle or story, or with a health related feature, will strengthen the focus on the product and not the price.

Another way is reach the market is to get mentioned in a popular weekly Japanese manga (comics) named Kami no Shizuku (The Drops of the Gods). This manga follows the story of a young man trying to gain access to his inheritance by identifying the 12 wines named in his father's will.  It has been linked to increased sales of the wines named in the story in parts of Asia. The story contains descriptions of the wines, which compare the flavours with scenes from famous art, nature and physical locations rather than traditional sommelier terminology. A few new world wines have appeared in the manga and Ata Rangi Pinot Noir 2001 from New Zealand was mentioned early in the series. The manga is now to be turned into a prime time TV drama from January 2009, starring a young Japanese idol, and might start another wine boom.

Over 100 New Zealand wineries export to Japan through 60 importers.