"Opposite to the World"... Japanese Government Encourages Youth to Drink Alcohol

Sharp Drop in Alcohol Consumption Reduces Liquor Tax Revenue
National Tax Service to Boost Alcohol Consumption with Next Month's 'Sake Viva' Contest
Securing Tax Revenue by Revitalizing the Liquor Industry
UK FT Criticizes: "Most Countries Welcome Drying Up, Japan Goes Opposite Way"

[Asia Economy Reporter Lee Ji-eun] As the annual alcohol consumption among Japanese adults has sharply declined recently, the Japanese government has actively encouraged alcohol consumption among the youth. This is because the tax revenue generated from alcoholic beverages has also decreased as the public's drinking volume has dropped.

The Japanese government plans to increase alcohol consumption among young people to boost national tax revenue and revitalize the stagnant domestic alcohol industry. However, some point out that this approach runs counter to the global trend where most countries are encouraging moderation in drinking.

According to Japan's Jiji Press on the 18th (local time), the National Tax Agency of Japan will hold the ‘Sake Viva’ contest in early September to promote drinking consumption among young people.

This contest is open to participants aged 20 to 39 and focuses on gathering innovative ideas and designs that can help revitalize the alcohol industry.

The Agency for Cultural Affairs of Japan, in collaboration with the National Tax Agency, will offer the grand prize-winning young participant an opportunity to commercialize their idea directly. Through this event, the National Tax Agency plans to identify the reasons behind the decline in alcohol consumption in Japan and devise measures to increase alcohol consumption in line with the changed lifestyle.

The National Tax Agency's direct involvement in revitalizing the alcohol industry is largely analyzed as an effort to secure tax revenue. In 2011, the share of liquor tax revenue in Japan's national tax was 3%, but as the public's alcohol consumption decreased, it fell to 2% as of 2020. According to data released by the National Tax Agency, the average annual alcohol consumption per adult in Japan dropped from 100 liters in 1995 to 75 liters in 2020.

This trend is especially pronounced among the youth. According to the 2017 National Health and Nutrition Survey by Japan's Ministry of Health, Labour and Welfare, 51.0% of men and 61.2% of women in their 20s responded that they "rarely drink alcohol." Considering that in 1997, 40.4% of men and 52.4% of women rarely drank, the proportion of young people who do not enjoy drinking has surged.

The Asahi Shimbun explained that a so-called ‘Sober Curious’ culture, where young people consciously choose not to drink, is spreading recently. Due to various social problems caused by alcohol, such as drunk driving, the idea has taken hold that losing control while intoxicated is unwise and that getting drunk is a waste of time.

However, there are unfavorable views regarding the National Tax Agency's campaign. The British daily Financial Times (FT) pointed out, "While most countries welcome abstinence among young people, Japan is moving in the opposite direction." The Japanese Ministry of Health stated, "We have not cooperated with the tax authorities regarding this contest," adding, "We regularly maintain close contact on drinking and health issues."

The Japanese alcohol industry is trying to overcome sluggish sales by launching non-alcoholic products with less than 1% alcohol content. Japanese liquor company Suntory began selling ‘Chuhai’ with 3% alcohol in 2009 and currently offers 15 types of non-alcoholic beverages. As of 2020, Japan's non-alcoholic beverage market has grown to around 800 billion yen, accounting for 10% of the total alcohol market.

Additionally, recently, bars where non-drinkers or those who do not consume alcohol can spend time have been opening one after another. ‘Sumadori Bar,’ which opened in Shibuya, Tokyo, in June, sells beverages with alcohol content ranging from 0% to 3%, gaining popularity among people in their 20s.

Experts predict that the phenomenon of Japanese youth avoiding alcohol will not change easily. Naoko Kuga, a senior researcher at the Nissei Basic Research Institute, told Jiji Press, "The current generation in their 20s are digital natives exposed to digital products and the internet from childhood and have enjoyed more content than previous generations. Because they have many entertainment options and can enjoy high-quality culture, they tend to view drinking as a bad form of entertainment."

This content was produced with the assistance of AI translation services.