Sake Market Outlook, 2028

Sake is a traditional Japanese alcoholic drink that is referred to as rice wine or nihonshu. It is made through the fermentation of rice, water, yeast, and a mold called koji-kin, which converts the starches in the rice into sugars. Unlike wine, which is made by fermenting the sugars in grapes, sake is made through a brewing process similar to beer. It is commonly consumed during special occasions, religious ceremonies, and social gatherings. Sake is also enjoyed in various culinary applications and is paired with different types of Japanese cuisine. The flavor profile of sake can vary widely depending on factors such as the type of rice used, the brewing process, and the region of production. Sake can range from dry and crisp to sweet and fruity, and it can be served chilled, at room temperature, or warmed. Japan is the primary producer of sake, and its breweries have been actively exporting their products.

According to the research report Global Sake Market Outlook, 2028, the market is anticipated to cross USD 11.50 billion in size, increasing from USD 8.81 billion in 2022. The market is expected to grow at a 4.91% CAGR by 2023-28. The demand for sake has been primarily driven by the domestic market in Japan, where it holds significant cultural and historical significance. However, there has been an increasing international demand for sake, particularly in countries like the United States, Australia, Europe, and some parts of Asia. This growing popularity has led to the expansion of sake exports and the establishment of sake breweries outside of Japan. The export of sake from Japan has increased over the years, and it can now be found in specialty liquor stores, Japanese restaurants, and bars in many parts of the world. Sake breweries have also been established outside of Japan, catering to local demand and promoting sake consumption globally.

Sake producers have been introducing a wider range of sake styles and flavors to cater to different consumer preferences. This includes variations in sweetness levels, aromas, and production techniques. Craft breweries have also emerged, offering small-batch and high-quality sake to meet the demand for premium products. There are now sake breweries in the United States, Australia, Europe, and other regions, producing sake using traditional Japanese methods or combining them with local influences. Efforts are being made to educate consumers about sake, its production process, and proper serving methods. Sake sommeliers and educators have emerged, conducting tastings, workshops, and pairing events to promote sake appreciation and understanding.

Sake has been gaining popularity in the United States and Europe in recent years. The exploration of diverse alcoholic beverages has contributed to the increased demand for sake in these regions. The rise in popularity of Japanese cuisine, including sushi, has created a demand for sake as a traditional and authentic beverage to accompany the food. There is a growing interest in Japanese culture, including its traditional arts, aesthetics, and rituals. Sake is now more widely available in the US and Europe due to increased importation and distribution. Sake tastings, seminars, and educational events are helping to raise awareness and provide consumers with a better understanding of sake. Artisanal and small-batch sake production has gained attention, offering consumers unique and high-quality sake options.

The use of rice as the main ingredient limits the flavor profile and aroma possibilities compared to beverages made from a broader range of ingredients, like grapes in wine or barley in beer. Improper storage or exposure to high temperatures can lead to flavor deterioration or spoilage. Unlike some other alcoholic beverages like wine or spirits, sake has a shorter shelf life. Ake is typically brewed using a process called multiple parallel fermentation. Outside of Japan, there may be limited knowledge and understanding of sake among consumers. This can lead to misconceptions or lower demand for sake in some regions.

By exporting and promoting sake globally, breweries can tap into new consumer bases and introduce sake to a wider audience. There is an opportunity to explore and promote sake's compatibility with various culinary traditions, such as fusion cuisine, seafood dishes, and other Asian cuisines. Sake producers can continue to innovate by experimenting with different types of rice, yeast strains, and brewing techniques to create new flavor profiles and expand the range of sake offerings. Sake producers can explore collaborations and partnerships with other alcoholic beverage producers, restaurants, and food companies to create unique experiences and reach new audiences. Collaborative projects can include limited-edition sake releases, special events, and joint marketing initiatives.

Junmai sake has been experiencing high demand in recent years. Junmai sake is a type of sake that is made solely from rice, water, yeast, and koji mold without the addition of any additional alcohol or additives. It is considered a more traditional and authentic style of sake, with a pronounced rice character that can range from dry to slightly sweet. The absence of added alcohol allows the natural flavors of the rice and fermentation process to shine. Junmai sake is often associated with higher quality and craftsmanship. Ordinary sake, known as Futsu-shu in Japanese, is the second most consumed sake type with a 21% share. Futsu-shu tends to be more affordable compared to premium sake varieties. It offers a versatile range of tastes, from dry to sweet, and can be enjoyed in various drinking settings, including casual social gatherings and izakayas (Japanese-style pubs). It is widely available in both local markets in Japan and international markets. Junmai Ginjo sake has been gaining popularity in the sake market, increasing at a CAGR of 3.77% historically and continuing to grow. Junmai Ginjo is a premium category of sake that is made from rice polished to at least 60% removal with no additional alcohol or additives. Sake often exhibits a wide range of aromas, including floral, fruity, and sometimes even tropical notes.

The popularity of sake among the middle-aged population is comparatively higher than in other age groups. Consumers in the age group of 40-60 years form a major consumer base for sake. The price of sake is usually higher than regular wine and beer, as a result of which per capita income and affordability have a direct relationship with the consumption of sake worldwide. People belonging to the middle-age group are more inclined towards traditional and luxury drinks; hence, their contribution to the growth of global sake market share is projected to be higher during the forecast years. Low-priced sake is more accessible to a wider range of consumers due to its lower cost. Low-priced sake is typically more widely available, making it easier to find in supermarkets, liquor stores, and restaurants.

While sake is primarily known as a beverage for consumption, it has also found application in various commercial and culinary contexts. It can be used to enhance the flavors of dishes such as teriyaki, stir-fries, sauces, marinades, and soups. It can be incorporated into cocktails, such as sake martinis or sake-based mixed drinks, adding a unique twist to the beverage menu. Sake-infused desserts, like sake-flavored ice cream or sake-soaked cakes, are also gaining popularity. Sake is a key ingredient in the production of rice vinegar. Sake kasu can be used in the production of various food products, such as pickles, miso paste, sauces, and even as a marinade for meat or fish. Sake is believed to have moisturizing, exfoliating, and brightening effects on the skin. It can be found in facial cleansers, masks, lotions, and bath products.

Japan leads the global sake market, as sake is a Japanese drink that has gained popularity around the world lately. The USA is the second-biggest market for sake, as Over the past decade, there has been a significant increase in the popularity and consumption of sake in the United States. Sake has become more readily available in the United States, with an expanding selection in liquor stores, bars, and restaurants. China's position in the global sake market had been growing, and it was considered one of the significant markets for sake consumption. China's rapidly expanding economy has led to an increase in disposable income among the population. As a result, consumers have more purchasing power and are more willing to explore and indulge in premium and luxury products like sake. The availability of a wide range of sake brands and varieties in China has expanded due to increased trade and imports from Japan and other sake-producing regions.

Brazil has a significant Japanese diaspora, and Japanese culture has had a strong influence on the country. The presence of a large Japanese-Brazilian community has contributed to the popularity of sake in Brazil. As part of this gastronomic exploration, sake has gained recognition and appreciation among consumers looking to experience new flavors and pairings. The availability of a wide range of sake brands and varieties in Brazil has increased over the years. Consumers are seeking out premium offerings like Junmai Ginjo and Daiginjo, appreciating the craftsmanship and unique flavor profiles of these sake types.

The sake industry in Europe has been steadily growing in recent years, with an increasing demand for sake and a growing number of sake-related establishments. Importers and distributors play a crucial role in bringing a wide range of sake brands and varieties to the European market, making them accessible to consumers and establishments. Sake bars and restaurants specializing in Japanese cuisine have become more prevalent in major European cities. In recent years, a small but growing number of sake breweries have emerged in Europe. Several sake competitions and awards are held in Europe, recognizing excellence in sake production.

Sake consumption in Southeast Asia has been steadily increasing, driven by the region's growing interest in Japanese cuisine and culture. Countries like Singapore, Thailand, Malaysia, and Indonesia have witnessed a surge in sake appreciation. Sake bars, Japanese restaurants, and specialized stores have become more prevalent, offering a diverse range of sake options. The sake industry in Australia and New Zealand has experienced significant growth. African and Middle Eastern cultures have their own traditional alcoholic beverages and drinking customs, which differ from sake-drinking traditions. The availability of sake in these regions may be limited, with fewer importers and distributors specializing in sake. Sake may not have received significant exposure or promotion in these countries, which affects consumer awareness and interest. Ozekisake, AsahiShuzo Co Ltd., Tatsuuma-Honke Brewing Co. Ltd. , Gekkeikan Sake Co., Ltd, Hakutsuru Sake Brewing Co., Ltd., ARAMASA Shuzo, Takara Holdings Inc, Sun Masamune Pty Ltd, KANPAI LOndon Craft Sake, Blue Current Brewery are some fo the prominent players in sake market.

Recent Developments:

• In February 2016, Nestle Japan launched alcohol-inspired sake KitKat in Japan. The sake chocolate claimed to contain 0.8% of alcohol it.
• In February 2018, Asahishuzo Co., Ltd. signed an agreement with the Culinary Institute of America (CIA), the world’s premier culinary college. Through this partnership, Asahishuzo Co., Ltd. will build their Sake Brewery in the CIA’s backyard, becoming the first Japanese sake producer to set down stakes on the East Coast, strengthening their brand portfolio.
• In 2017, Takara Shuzo Co. launched its novel brand Takara Craft, as its new regional craft chu-hi brand. Takara Craft Kyoto Yuzu is a regional chu-hi brand that uses local raw material and uses local material blended with cask-aged Shochu, with the goal to meet the demand of local communities..

Considered in this report

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Regions & Countries covered in the report:

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, South Africa)

Aspects covered in this report

• Global Sake market with its value and forecast along with its segments
• Region & Country-wise Sake market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type

• Junmai
• Ordinary Sake
• Honjozo
• Junmai Ginjo
• Ginjo
• Junmai Danginjo

By Age Group

• 40-60 years
• 20-40 years
• Above 60 years

By Application

• Commercial
• Home

By Price Range

• Low
• Medium
• Premium

By Distribution Channel

• Off-trade
• On-trade

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Sake industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.