Japanese Alcohol Imports Hit Record High on Weak Yen... Double That of China

Consumption Expands as Weak Yen and Demand for Travel to Japan Align

First Quarter Import Value Up 20.9% Year-on-Year

Japanese Beer Accounts for 57%; Sake and Whiskey Also on the Rise

With the increase in imports of Japanese alcoholic beverages, the value of imports in the first quarter of this year reached an all-time high. Analysts attribute the recovery in Japanese alcohol imports, which had plummeted due to the boycott of Japanese products triggered by the deterioration of Korea-Japan relations and the impact of COVID-19, to the weak yen, the highball boom, and growing demand for travel to Japan.

According to export and import trade statistics from the Korea Customs Service on May 18, imports of Japanese alcoholic beverages from January to March this year amounted to 29,445 tons, with a total value of 53.95969 billion won (35.875 million dollars). Compared to the same period last year, import volume increased by 16.7% and import value by 20.9%. This figure is more than double the import value of Chinese alcoholic beverages (21.3568 billion won, 14.196 million dollars).

The scale of imports has surpassed the levels seen prior to the boycott of Japanese products in 2019. In the first quarter of 2019, the value of Japanese alcoholic beverage imports was 35.13207 billion won (23.357 million dollars), but it plummeted to 6.3491 billion won (4.222 million dollars) in 2020 and remained low at 9.49508 billion won (6.314 million dollars) in 2021. At that time, both the contraction of the dining-out market caused by the spread of COVID-19 and the ongoing atmosphere of boycotting Japanese products due to Korea-Japan conflict led to a sharp decline in the consumption of Japanese beer and sake (cheongju).

After rebounding to 16.5389 billion won (10.996 million dollars) in the first quarter of 2022, the value of Japanese alcoholic beverage imports continued to increase, reaching 28.25874 billion won (18.785 million dollars) in 2023, 43.85955 billion won (29.16 million dollars) in 2024, and 44.61907 billion won (29.665 million dollars) last year. This year, in just the first quarter, imports reached 53.95969 billion won, setting a new all-time high.

By product category, Japanese beer accounted for the largest share. In the first quarter of this year, imports of Japanese beer amounted to 30.78882 billion won (20.47 million dollars), comprising 57.1% of all Japanese alcoholic beverage imports. Sake (cheongju) followed at 11.48359 billion won (7.633 million dollars), or 21.3%; whisky at 4.16348 billion won (2.768 million dollars), or 7.7%; and wine at 591.11 million won (393,000 dollars), or 1.1%.

Japanese beer, in particular, showed remarkable growth. Imports, which stood at 10.34071 billion won (6.875 million dollars) in 2022, increased to 21.78698 billion won (14.484 million dollars) in 2023, 83.53344 billion won (55.516 million dollars) in 2024, and 101.4965 billion won (67.446 million dollars) last year. This stands in contrast to declining beer imports from major sources such as the Netherlands, Germany, and China during the same period. For China, beer imports decreased by 45.4%, from 54.80984 billion won (36.442 million dollars) in 2022 to 29.92658 billion won (19.905 million dollars) last year.

Demand for sake and whisky also increased. Sake imports rose from 28.59535 billion won (18.985 million dollars) in 2022 to 41.8816 billion won (27.841 million dollars) last year. During the same period, whisky imports grew from 624.09 million won (414,800 dollars) to 15.88329 billion won (10.56 million dollars). The growing popularity of Japanese dining culture, such as omakase and izakaya, in Korea, as well as the ongoing highball trend, have contributed to the increased consumption of Japanese alcoholic beverages.

The weak yen phenomenon also appears to have had an impact. Analysts note that as more consumers who travel to Japan seek out the alcoholic beverages they tried locally after returning home, and with the weakening of the yen reducing price burdens, consumption of Japanese alcohol has naturally increased.

Companies that import and distribute Japanese alcoholic beverages are also reporting positive results. M's Beverage, the official domestic importer and distributor of Sapporo and Yebisu beer, recorded sales of 65.7 billion won last year, a 48% increase from the previous year's 44.4 billion won.

An official from the liquor industry stated, "At the time of the boycott, there were many restaurants and distribution channels that did not handle Japanese beer, but recently, consumer resistance has disappeared. In particular, as the consumption of highballs and sake has become routine, especially among young people, the Japanese alcohol market is expanding."

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