The Japanese hot drinks market is set to experience a period of real growth, driven by the hot coffee market which continues to thrive in the country.
The Japanese hot drinks market is projected to grow at a compound annual growth rate (CAGR) of 3.8 percent from JPY 2,144.0bn (US$20.1bn) in 2020 to JPY 2,585.9bn (US$27.2bn) – with the hot coffee sector the main driver behind this growth.
That’s according to analytics company GlobalData, whose report ‘Japan Hot drinks – Market Assessment and Forecasts to 2025’, reveals that the hot coffee category is forecast to register the fastest value CAGR of 4.2 percent during 2020–2025. Hot coffee is followed by hot tea, which is expected to record a CAGR of 3.1 percent during the same period.
“Japan is well known for its tea culture. However, with modernisation, the hot coffee category in the country is also growing. Several foreign players have introduced novel hot coffee products in the Japanese market, thus drawing attention of variety-seekers. Furthermore, the cafés have a plethora of hot coffee varieties on their menu – all leading to the growth of the category,” said Isha Katurde, Consumer Analyst at GlobalData.