China is Top Overseas Market for Japan’s Sake Exports

Economy Culture Food and Drink Dec 6, 2024

Sake exports have been growing against the backdrop of increased global interest in traditional washoku cuisine. Active promotion by the Japanese government contributed toward the number of export countries rising to 75 in 2023.

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Annual exports of nihonshu, or Japanese sake, consecutively hit record highs from 2010 through 2022. In 2023, a decline in exports to the top two overseas markets, China and the United States, was a factor in the first year-on-year drop in fourteen years. However, at ¥41 billion, the total value of exports was four times what it was a decade before. There was a particularly sharp rise in exports from 2021 onward, when Japan’s government began focusing on promoting nihonshu overseas.

The top destination for sake exports in 2023 by sales was China with ¥12.5 billion, followed by the United States with nearly ¥9.1 billion and Hong Kong with ¥6 billion. Exports to China fell by 12% year-on-year due to economic slowdown, as well as a slump in business for Japanese restaurants after exports of the country’s seafood were suspended following the release of treated wastewater from Fukushima Daiichi Nuclear Power Station. Nonetheless, nihonshu remains ever-popular, especially among the wealthy, as a luxury alcoholic beverage.

By annual export volumes, the United States came first with 6,502 kiloliters, a year-on-year fall of 28.4% due to inflation and inventory adjustments. China was second, with 5,793 kiloliters and South Korea third with 4,191 kiloliters.

In Asian countries, where nihonshu has been successfully branded as a luxury drink, the average export value per liter was over ¥2,000, with Macau having the highest price by far.

Traditional washoku cuisine has generated a lot of international interest due to healthy ingredients that are used in such a way as to make the most of their flavors. Since it was registered as an intangible cultural asset in 2013, the number of Japanese restaurants overseas has soared. In line with this growth, interest in Japanese sake has similarly increased. The growing number of visitors to Japan is also leading to more new fans of nihonshu.

The National Tax Agency is working hard to boost exports, including by appointing alcohol export coordinators in prospective cities around the world, planning business negotiations, and holding seminars to promote Japan-produced alcoholic drinks.

sake exports