Market Trends of Japan Energy Drink Industry
This section covers the major market trends shaping the Japan Energy Drink Market according to our research experts:
Hectic Lifestyles Leading Toward High Demand for Energy Drinks
- In Japan, "karoshi" is a significant social problem. This condition, which results in illnesses and mental disorders brought on by overwork, is expanding globally. According to a joint World Health Organization (WHO) and International Labor Organization (ILO) estimate from 2021, more than 745,000 people die annually due to extended workdays. According to the Japan Ministry of Health, Labour, and Welfare, the percentage of paid leave taken in Japan in 2021 was 56.6%. The culture of Japanese businesses makes it challenging to take time off. Japan has among the longest working hours in the world. According to a government survey, approximately one-fourth of Japanese companies required their employees to work more than 80 hours of overtime, and 12% of companies had employees breaking the mark of 100 hours a month.
- Therefore, due to the rise in health consciousness among consumers, most Japanese consumers are shifting toward healthier alternatives to soft drinks and carbonated beverages due to their hectic lifestyle, which, in turn, has led to a rise in demand for functional beverages, like energy drinks, especially through kiosks, vending machines, and specialist retail stores that are easily available.
- The increasing consumption of ready-to-drink (RTD) beverages in line with the hectic schedules of consumers due to their work lifestyles has moved their preference toward canned, processed, or ready-to-eat drinks, propelling the functional drink market in Japan.
- For instance, in February 2022, ITO EN North America, the Brooklyn-based green tea company and innovators of healthy beverages, introduced a plant-based functional energy drink under their award-winning brand- matcha LOVE+. The new matcha LOVE ENERGY + line is an innovative green tea and matcha blend with functional ingredients that benefit the body and mind with soothe, immunity, and focus. Each variety contains 50 mg of natural caffeine for a gentle energy boost and is powered by green tea and matcha's unique properties.
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Innovation in Packaging Accelerating the Demand for Energy Drinks
- As a product category, energy drinks are found widely in stores across the country due to their longer shelf life, range of packaging sizes, and convenience. In Japan, energy drinks are famous as pharmaceutical drugs, quasi-drug, and carbonated beverages with innovative packaging to attract new generations of consumers. However, several giant manufacturers of energy drinks are spending huge amounts on product packaging in line with safety measures.
- For instance, Red Bull employs circular packaging technology in all its products to ensure sustainability and decrease plastic usage. The Japanese population spends a significant amount on the food service sector, and the country is witnessing a decent consumption rate of energy drinks.
- For instance, in October 2021, Japanese contract packaging company Cosmo Foods is set to add carton packs to its portfolio by installing SIG's high-speed combismile filling machine at its plant in Komono. The 50-50 joint venture DNP SIG Combibloc Co., Ltd brings true packaging innovation and value-added filling technology to Japan with SIG's unique on-the-go combismile carton pack. Copacker Cosmo Foods will be the first company in Japan to install a state-of-the-art, high-speed combismile filling machine from SIG. This will set the course to bring trendy beverages in modern, convenient and sustainable packaging solutions designed specifically for on-the-go consumption to busy consumers.
