Japan Energy Drink Market - Growth, Trends, and Forecasts (2023 - 2028)

The Japanese energy drink market is estimated to register a CAGR of 14.5% during the forecast period 2022-2027.

By packaging, the canned energy drink segment is estimated to be the most preferred and highly consumed owing to its easy availability and convenience as long working schedules and hectic lifestyles become the norm. Despite stringent lockdowns due to the COVID-19 pandemic, Japan has not faced complete lockdowns. No restrictions were placed on residents' movements and businesses. Hence, the working population, which is one of the major consumers of energy drinks, helped the demand for energy drinks stay afloat. However, in Japan, canned energy drinks are estimated to be the most preferred and highly consumed product owing to their easy availability and convenience.

The energy drink market caters to the demand and changing consumer preferences of a large population of millennials in the country owing to their perception that energy drinks are superior to other carbonated drinks in terms of health benefits. Therefore, factors such as these are driving the market studied.

However, increasing consumer awareness of maintaining good health leads to the reduced frequency of gut-related disorders, like ulcers, Gastroesophageal Reflux Disease (GERD), gastroenteritis, etc., which is accelerating the consumption of energy drinks, basically probiotics, to a large extent.

Japan Energy Drink Market Trends

Hectic Lifestyles Leading Toward High Demand for Energy Drinks

Japan has among the longest working hours in the world. According to a government survey, approximately one-fourth of Japanese companies required their employees to work more than 80 hours of overtime, and 12% of companies had employees breaking the mark of 100 hours a month. Due to the rise in health consciousness among consumers, most Japanese consumers are shifting toward healthier alternatives to soft drinks and carbonated beverages due to their hectic lifestyle, which, in turn, has led to a rise in demand for functional beverages, like energy drinks, especially through kiosks, vending machines, and specialist retail stores that are easily available.​ The increasing consumption of ready-to-drink (RTD) beverages in line with the hectic schedules of consumers due to their work lifestyles has moved their preference toward canned, processed, or ready-to-eat drinks, which is propelling the functional drink market in Japan.

Innovation in Packaging Accelerating the Demand for Energy Drinks

Energy drinks, as a product category, are found widely in stores across the country due to their longer shelf life, range of packaging sizes, and convenience. In Japan, energy drinks are famous as pharmaceutical drugs, quasi-drug, and carbonated beverages with innovative packaging to attract new generations of consumers. However, several giant manufacturers of energy drinks are spending huge amounts on product packaging in line with safety measures. For instance, Red Bull has been employing circular packaging technology in all its products to ensure sustainability and decrease plastic usage. The Japanese population tends to spend a significant amount on the foodservice sector, and the country is witnessing a decent consumption rate of energy drinks.

Japan Energy Drink Market Competitor Analysis

The Japanese energy drink market is highly competitive, and the majority of the market share is held by key players, including The Coca-Cola Company, Rockstar Inc., Red Bull GmbH, Taisho Pharmaceutical Holdings, and Otsuka Pharmaceutical Co. Ltd. Manufacturers are focusing on creating wider distribution channels in order to cope with the rising competition and increasing consumer demand for energy drinks in the country. In addition, key players are relying on online distribution channels for the marketing and branding of their products. Advanced distribution network and manufacturing expertise offer an upper edge to manufacturers to expand their range of products across the country.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support