Rise of Japanese Beer in Australia

The Australian beer market is experiencing a significant increase in the popularity of Japanese-style beers. This trend is driven by a surge in Australian tourism to Japan and strategic acquisitions by Japanese beverage conglomerates within Australia.

Market Growth and Consumer Shifts

Sales of Japanese beer varieties are on a notable upward trajectory. Asahi reported a 40% increase in its Super Dry sales in Australia since 2020.

The Japanese beer segment has now become the leading country-of-origin beer segment in Australia by both value and volume, surpassing Mexican beers.

Consumer preferences are shifting away from heavy, craft-style IPAs towards crisper, lighter, and more refreshing lagers, a characteristic often associated with Japanese beers.

This change is influenced by a record number of Australians traveling to Japan, with 1 million visitors recorded last year, compared to 101,000 in 1997. Market analysts indicate that this increased travel is significantly impacting domestic consumer choices, leading to a desire to replicate overseas experiences at home.

Local brewers, such as Yulli's in Sydney, have also introduced Japanese-style lagers, like the Karaoke Kingu Rice Lager, which has become a staple product distributed to Japanese restaurants.

Japanese Giants Acquire Australian Breweries

Japanese beverage manufacturers Kirin and Asahi have expanded their operations in Australia. This expansion is driven by changing drinking habits and reduced beer consumption among younger generations in Japan.

These two companies are estimated to control up to 85% of Australia's total beer production.

• Asahi: Completed its acquisition of Carlton & United Breweries in 2020 and employs nearly 4,000 Australians across 17 manufacturing sites.
• Kirin: Acquired Lion Nathan in 2009, subsequently rebranded as Lion. Lion consistently seeks to offer new and relevant products to the Australian market, including those inspired by international trends.

Australia's largest independent brewery, Coopers, also produces Sapporo under license and distributes Yebisu. Coopers reported strong sales growth for these brands over the past two years.

Local Production vs. Imports

While Japanese beer imports to Australia have doubled over the past decade, representing 4% of total beer imports, the actual popularity of Japanese brands is higher. This is because many well-known Japanese beer brands, including Asahi Super Dry, Kirin Ichiban, and Sapporo, are manufactured in Australia.

Discerning drinkers often note a difference in taste between beers brewed in Japan and those made locally. This distinction is partly attributed to the varying mineral content in water supplies; Japan is known for its "soft" water, which can influence the flavor and texture of the beer.

Despite potential differences, Australian water, particularly in Sydney, is considered suitable for producing clean and easy-to-work-with lagers.