Bottled Wine Remains Japan's Top Choice

Japan's wine import market displayed a nuanced performance in the first half of 2024, revealing shifts in both volume and value that underscore the complexities of the global wine trade. According to data released by Japanese customs authorities, the country saw a modest 0.6% increase in the volume of wine imported, amounting to nearly 112 million liters. However, this rise in quantity was met with a 2.3% reduction in expenditure, with total spending reaching 111.9 billion yen. This dual trend—higher volume, lower spending—reflects a 2.8% decrease in the average price per liter, which fell to 999 yen.

When converted to euros based on the current exchange rate, Japan's wine imports for this period equate to approximately 700 million euros, with an average price of 6.24 €/liter. This price point is significantly higher than the global average, indicating Japan's preference for higher-quality or premium wines. Despite the slight dip in spending, the first half of 2024 ranks as the second-best period in terms of value for Japanese wine imports, surpassed only by the record set in 2023. However, the volume of imports remains lower than in previous years, pointing to a shift in consumer behavior or market dynamics.

Japan's import patterns were uneven throughout the first half of 2024. The year began with a sharp 20% reduction in wine imports during January and February. This decline was subsequently offset by four consecutive months of growth in volume. However, the value of imports only saw an increase in May and, to a lesser extent, in April. This indicates a potential stabilization of the market following the volatility observed in early 2023, where the year closed with a 12.5% decrease in volume but a 2% increase in value.

Within Japan's diverse wine portfolio, sparkling wine experienced the most significant decline in value, dropping by 12.2% to 41.1 billion yen. Despite this decrease, sparkling wine remains the second most acquired wine category, though still trailing behind bottled wine, which saw a 3.4% increase in value to 66.1 billion yen. Bottled wine also dominated in terms of volume, with 70.3 million liters imported, albeit with a slight 1.8% decrease compared to the previous year. Sparkling wine followed with 17 million liters, marking a 5% drop.

On the other hand, bulk wine imports grew by 6.9% in volume and an impressive 15.3% in value, totaling 16.5 million liters and 2.7 billion yen, respectively. This growth is indicative of a shifting preference towards more economical options or possibly the growing popularity of blending and local bottling within Japan. The bag-in-box category also saw remarkable growth, with a 27% increase in volume and a 34.6% rise in value, reaching 8.2 million liters and 2.1 billion yen. This suggests an increasing consumer acceptance of alternative packaging formats, likely driven by convenience and cost-effectiveness.

France Leads in Value, Chile in Volume

Japan's wine imports in the first half of 2024 were sourced from 52 different countries, reflecting the global nature of the wine trade. France continued to dominate the market, despite a significant 8.9% drop in value to 61.3 billion yen, which still accounted for 55% of Japan's total wine import expenditure. Italy and Chile followed, with Italy seeing a 5.9% increase to 14.3 billion yen and Chile a substantial 13.8% rise to 11.1 billion yen.

In terms of volume, Chile maintained its lead with 32.3 million liters imported, representing a 4.6% increase. This was 10 million liters more than France, which saw a 13.4% decline in volume to 22.4 million liters. Spain and Italy were close contenders, with imports of 20.8 and 20 million liters respectively, both reflecting healthy growth. Notably, Australia experienced a 19% surge in volume, securing its position as the fifth-largest supplier, while the United States saw a 2.9% decline, highlighting the shifting dynamics among Japan's key wine suppliers.

France's dominance in the Japanese wine market is further underscored by its premium pricing. The average price of French wine in Japan was 2,731 yen per liter, an increase of 5.2%, making it the most expensive among the top ten suppliers. In contrast, Chile offered the most competitively priced wines, averaging 344 yen per liter, although this represented an 8.8% increase from the previous year. Spain followed with an average price of 399 yen per liter, up by 7.8%, while Italy's pricing remained stable at 717 yen per liter.

While France, Chile, and Italy largely dictated the trends, other regions saw notable changes. Argentina, New Zealand, and Germany experienced significant declines in their export volumes to Japan, reflecting either logistical challenges or shifts in consumer preferences. Conversely, South Africa emerged as a key player, recording the steepest price decrease among the analyzed countries, which may indicate aggressive pricing strategies aimed at capturing market share.

The first half of 2024 reveals a Japanese wine market in a state of transition. While overall import volumes have seen a slight increase, the accompanying decline in value and changes in the composition of wine types and sources suggest a market responding to a range of economic and consumer pressures. As Japan continues to navigate these shifts, the wine industry worldwide will likely see further adjustments, with premium wines maintaining their stronghold and alternative packaging and bulk imports gaining ground. The coming months will be crucial in determining whether these trends solidify or if new patterns emerge in response to global and domestic influences.