The threat posed to the industry by Japanese beer alternatives. Health-conscious consumers are turning to alternatives.

Beer has long been a favorite national drink of the Japanese people.
However, with the recent rise in health consciousness, alternatives to beer are gaining attention.
New alternatives such as non-alcoholic beer and hard seltzer are emerging and are having a significant impact on the traditional beer market.
This article details the threat beer alternatives pose to the industry and their capabilities.

Why Beer Alternatives are in the Spotlight.

There are four main reasons why beer substitutes are gaining attention

1. growing health consciousness
2. Increasing number of people who are concerned about calories and sugar
3. the need for people to cut back on alcohol
4. diversifying consumer preferences

In recent years, health consciousness has been on the rise, and more and more people are seeking foods and beverages with reduced calories and sugar content.
In particular, middle-aged and older consumers are increasingly interested in preventing lifestyle-related diseases and dieting, and beer alternatives are attracting attention as products that can meet these needs.

In addition, the number of people who wish to reduce their alcohol intake is also on the rise.
People who are unable to drink alcohol due to work or family reasons, or who are cutting back on alcohol for health reasons, are seeking alternatives to beer.

Furthermore, people, especially young people, are diversifying their tastes and ways of enjoying beer.
Consumers are increasingly seeking new tastes and experiences in addition to traditional beer, and beer alternatives are attracting attention as products that can meet these diverse needs.

The Rise of Non-alcoholic Beer

Non-alcoholic beer is a beer-tasting beverage with an alcohol content of 0.00%.
It tastes and smells similar to beer, but without the harmful effects of alcohol, so it can be enjoyed by health-conscious people or when driving.
In recent years, major beer manufacturers have launched non-alcoholic beers one after another, and the market is expanding.

Advantages of Non-alcoholic Beer

• No health hazards caused by alcohol
• Low in calories and sugar
• Can be enjoyed while driving or at work
• Relaxation and stress-relieving effects can be expected

Since non-alcoholic beer contains no alcohol, there is no burden on the liver and no need to worry about hangovers or other health problems.
In addition, because it is low in calories and sugar, even dieters can drink it with relative peace of mind.

It is a great advantage to be able to enjoy non-alcoholic beer in situations where alcohol is not allowed, such as during work or when driving.
Furthermore, the ingredients in hops can be expected to have a relaxing and stress-relieving effect, so drinking non-alcoholic beer may help maintain physical and mental health.

Non-alcoholic Beer Market Trends in Japan

• In 2020, the size of the domestic non-alcoholic beer market will be approximately 20 billion yen
• Forecast to reach approximately 40 billion yen by 2025
• Major beer makers are launching new products one after another
• Taste and aroma are improving, and beer-like flavors are being achieved.

The domestic market for non-alcoholic beer is expected to reach a record high of approximately 20 billion yen in 2020.
The market is expected to continue to grow in the future as people become more health-conscious.
Focusing on the growth potential of this market, major beer manufacturers are introducing new products one after another.

In addition, advances in manufacturing technology have greatly improved the taste and aroma of non-alcoholic beer.
The latest non-alcoholic beers, while lacking alcohol content, taste as close to beer as possible, and are of sufficient quality to satisfy even beer lovers.

Popularity of Hard Seltzer

Hard Seltzer is an alcoholic beverage with the refreshing taste of sparkling wine.
Its fruity taste and low sugar and calorie content make it especially popular among young people and women.
The market is already well established overseas, and major manufacturers are beginning to enter the market in Japan as well.

Characteristics of Hard Seltzer

• Fruity and easy to drink
• Low in sugar and calories
• Relatively low alcohol content (around 4-6%)
• Refreshing and suitable for outdoor activities

Hard Seltzer is an alcoholic beverage based on carbonated water with added fruit flavors.
It is low in sugar and calories and has a relatively low alcohol content, making it easy to drink for health-conscious people and those who do not like alcohol.

In addition, the refreshing taste allows people to enjoy a new drinking experience that is different from that of beer.
Another appeal of Hard Seltzer is that it can be enjoyed in a variety of settings, such as outdoor scenes and after-sports drinking.

It is generally defined as follows

• Seltzer -> carbonated water
• Hard Seltzer -> carbonated water with alcohol

Hard Seltzer Market Trends

• In 2020, the domestic hard seltzer market size will be about 2 billion yen.
• Forecast to reach approximately 30 billion yen by 2025
• Major beverage makers and emerging manufacturers are entering the market – Foreign brands are gaining popularity

The market size of hard seltzer in Japan is still small at about 2 billion yen as of 2020, but is expected to grow significantly in the future.
By 2025, the market size is projected to reach approximately 30 billion yen, and in addition to beer makers, major beverage makers and emerging makers are beginning to enter the market.

In addition, foreign brands of hard seltzer are beginning to enter the Japanese market and are gaining popularity, especially among young people.
It is expected that competition in the market will intensify in the future with the introduction of diverse products that pursue taste and functionality.

Impact on the beer industry and countermeasures

The rise of beer substitutes has had a significant impact on the traditional beer market. In fact, domestic sales of beer-based beverages are on the decline, and beer makers are feeling a sense of crisis. In response to this situation, beer makers are taking the following measures

1. development and marketing of non-alcoholic beer and hard seltzer
2. development of beer with reduced sugar and calories
3. development of beer as a functional food
4. development of overseas markets (5) Proposing new drinking scenes

Major beer manufacturers are trying to respond to changes in the market by developing and selling their own non-alcoholic beer and hard seltzer.
They are also focusing on the development of beers with reduced sugar and calories and beers with functional claims.

Furthermore, to compensate for the shrinking domestic market, we are focusing on developing overseas markets.
We are trying to increase awareness of Japanese beer brands and expand sales channels, especially in Asia.

In addition, we are trying to stimulate demand by proposing new drinking scenarios for beer.
For example, we are working to help people rediscover the appeal of beer by suggesting food pairings and seasonal drinking styles.

Challenges and Future Prospects for the Beer Industry

The rise of beer alternatives poses a major threat to the beer industry.
In particular, the growing health consciousness and the shift away from alcohol among young people are serious issues that are directly related to the shrinking beer market. The beer industry needs to seriously address these issues and take countermeasures.

In the future, the beer industry will be required to take the following actions

1. develop products that cater to health-conscious consumers (2) Develop new products that meet the tastes of young people
2. strengthen digital marketing
3. develop and market environmentally friendly products
4. creation of new drinking occasions

To respond to health-conscious consumers, it is necessary to develop beers with reduced calories and sugar content and beers with functional ingredients.
In addition, products with new tastes and drinking experiences must be developed to meet the tastes of young people.

Strengthening digital marketing is also important: effective promotions aimed at young people using social networking services and influencers must be developed to convey the appeal of beer.

In addition, the development and marketing of environmentally friendly products is also required in response to the growing interest in environmental issues.
For example, beer made from plant-derived ingredients and packaging made from recycled materials can be considered.

In addition, it is also important to create new beer drinking scenarios.
It will be necessary to stimulate demand for beer by proposing drinking styles that correspond to the new normal, such as home drinking and online drinking.

Conclusion

The rise of beer alternatives poses a significant threat to the beer industry.
The traditional beer market is shrinking as new alternatives such as non-alcoholic beer and hard seltzer are gaining attention against a backdrop of growing health consciousness and a shift away from alcohol among young people.

The beer industry is responding to these market changes by focusing on the development of alternatives and healthier beers.
It is also working to develop overseas markets and propose new drinking scenarios.

However, the challenges facing the beer industry are deep-rooted and require drastic measures.
A multifaceted approach is needed, including the development of products that cater to health-conscious consumers, the development of new products that cater to the tastes of young people, the strengthening of digital marketing, the development and sale of environmentally friendly products, and the creation of new drinking scenarios.

Beer substitutes are expected to have an increasing impact on the market in the future, and the beer industry must accurately grasp these changes and respond flexibly.
Will the beer industry be able to transform itself to meet the needs of the new era while preserving the traditional values of beer?
We will keep a close eye on the trends in the beer industry.