Japan Energy Drinks Market Outlook

in japan, energy drinks have become increasingly popular in recent years, with market penetration increasing steadily and total revenue for energy drinks expected to reach almost 34 billion yen by 2032. this is a trend that is likely to continue, as market analysis has predicted that japan’s energy drinks market will grow at a compound annual growth rate (cagr) of 2.7% from 2018 to 2032. the growing health and wellness trend is also expected to increase demand for such drinks, as consumers become more aware of the benefits of consuming nutritive beverages rather than sugar-filled energy drinks. the majority of the energy drinks market in japan is dominated by domestic producers, such as lion co. ltd. and pokka corporation, who account for over 79% of the total market share; indicating the immense potential of the market for further growth. in particular, there has been a steady increase in the number of private label products being introduced in the market, which is likely to increase competition significantly in the future. the rising number of working individuals in japan is causing an increasing demand of energy drinks among people who need an additional boost of energy to stay productive throughout the day. this demand is likely to drive further growth in the energy drinks market, as consumers opt for healthier options with more natural ingredients. the introduction of innovative and differentiated marketing campaigns by various companies is also likely to attract more customers towards the energy drinks market in japan. for instance, the “chimu chimu” campaign launched by poka corporation in 2017 saw an increase in sales of the product by over 10%. furthermore, the japanese government has implemented several regulations and policies to promote healthy eating and drinking among the population, which could boost the market to a certain extent. this includes stricter labeling and restrictions on the content of certain drinks, which should motivate a shift from unhealthy beverages to healthier alternatives. overall, the japan energy drinks market looks set to continue its growth over the forecast period of 2018-2032, with an increased consumer focus on health and wellness and innovative promotional campaigns helping to drive its growth. it is likely that domestic companies will also continue to dominate the market, although competition from small independent producers is expected to increase in the near future.