Japan Craft Beer Market

Japan Craft Beer Market Overview:

The Japan craft beer market size reached USD 8.0 Billion in 2024. The market is projected to reach USD 23.4 Billion by 2033, exhibiting a growth rate (CAGR) of 12.61% during 2025-2033. The growing consumption of alcohol, rising number of bars and pubs, and increasing occurrence of craft beer events and festivals providing a platform for craft breweries represent some of the key factors driving the market.

Craft beer refers to a type of beer that is produced by independent breweries using traditional and innovative brewing methods. It is known for its emphasis on quality, flavor, and distinctiveness and made by selecting high-quality ingredients, such as malted grains (such as barley) and hops, which are milled and mixed with water and yeast to ferment and produce alcohol. It offers various options, including pale ales, India pale ale (IPAs), stouts, and porters. It can be enjoyed on its own or paired with a variety of foods, as it complements and enhances different flavors. It helps the agriculture sector to grow as hops and malts are used as raw materials that are grown and sold by local farmers. Furthermore, as craft beer contributes to local economies and promotes sustainability, its demand is increasing in Japan.

Japan Craft Beer Market Trends:

Increasing establishment of pubs

Rising establishment of pubs is positively influencing the market in Japan. According to industry reports, as of May 5, 2025, Japan had 2925 pubs, reflecting a 3.69% growth since 2023. As more pubs are opening across urban and semi-urban areas, they are creating greater access and exposure to a wide variety of craft beer options. These pubs often emphasize local and artisanal brews, encouraging people to explore new flavors and styles. They also serve as platforms for small and independent breweries to showcase their unique products to a broader audience. The casual and social atmosphere of pubs attracts the younger demographic that seeks premium and experiential drinking options, further driving the demand. Additionally, many pubs are collaborating with local brewers, hosting tasting events and promoting seasonal and limited-edition batches.

Innovations in flavors

Innovations in flavors are fueling the market growth. Brewers are experimenting with local ingredients like yuzu, matcha, and wasabi to create unique flavor profiles. This approach not only reflects Japan’s culture but also sets its craft beers apart in a competitive market. The establishment of new brewhouses is supporting this trend by providing space and resources for experimentation. In January 2024, Great Dane Brewing Japan celebrated the official launch of its new brewhouse in Sendai, Japan. The Japanese operation commenced with two locally crafted beers: Amber Ale and its signature brew, Great Lager. Great Lager, with an ABV of 5.1%, offered a subtle caramel taste with a dry ending. Collaborations with chefs and food brands are also leading to new flavor combinations that surprise and delight customers. These creative efforts help craft beer gain popularity among younger generations and non-traditional beer drinkers.

Expansion of retail outlets

The broadening of retail outlets is propelling the market growth. According to the IMARC Group, the Japan retail market size reached USD 1,779.7 Billion in 2024. Supermarkets, convenience stores, and specialty shops offer a variety of craft beers, helping small breweries reach new customers. Online retail platforms also play a key role by allowing individuals to explore and purchase craft beer from across the country. As the demand for craft beer is increasing, more retailers are dedicating shelf space to local brews. This visibility is boosting brand recognition and encouraging trial among shoppers. The rise of beer-focused sections in department stores and train station shops is supporting impulse buying. Retail chains often promote seasonal and regional craft beers, thereby increasing sales.

Japan Craft Beer Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Japan craft beer market report, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on product type, age group, and distribution channel.

Product Type Insights:

• Ales
• Lagers
• Others
   

The report has provided a detailed breakup and analysis of the market based on the product type. This includes ales, lagers, and others.

Age Group Insights:

• 21-35 Years Old
• 40-54 Years Old
• 55 Years and Above
   

A detailed breakup and analysis of the market based on the age group has also been provided in the report. This includes 21-35 years old, 40-54 years old, and 55 years and above.

Distribution Channel Insights:

• On-Trade
• Off-Trade
   

A detailed breakup and analysis of the market based on the distribution channel has also been provided in the report. This includes on-trade and off-trade.

Regional Insights:

• Kanto Region
• Kinki Region
• Central/Chubu Region
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Kanto Region, Kinki Region, Central/ Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, and Shikoku Region.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the Japan craft beer market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Japan Craft Beer Market News:

• June 2025: Agnes B. introduced the second edition of b. BEER, a craft beer. The beer produced using cutting-edge technology, alongside the water and natural surroundings of Japan, reflected a unique outcome of the ‘harmonious relationship with nature’. It would be sold at the brand's stores, starting June 6.
• May 2025: Repubrew and Hansharo, two craft breweries located in Japan’s Shizuoka Prefecture, collaborated to launch limited-edition craft beers with remarkably high alcohol levels. The product, ‘Heaven’s Door,’ was a duo of beers featuring alcohol-by-volume (ABV) percentages of 24.5% and 19.5%, respectively, significantly higher than the usual beer range. The items sought to highlight the inventive possibilities of craft brewing instead of functioning as simple and easy-to-consume drinks.
• May 2025: The Brewin’ Groove Festival, an extraordinary event combining music and craft beer, was announced to take place on November 8 at Tachikawa Stage Garden in Tokyo. CRAFTROCK BREWING, the organization responsible for the renowned event, would choose the craft beer. Early bird tickets would be available for ¥9,900 and would come with a craft beer tasting set.
• April 2025: Fermentis hosted the Beer EXPO 2025 at Makuhari Messe to celebrate the 30th anniversary of craft beer's inception in Japan. This unique beer event united more than 200 breweries from around the nation, giving attendees a chance to explore, enjoy, and engage with the lively Japanese beer culture.
• March 2025: NEC Corp. and Coedo Brewery in Saitama Prefecture, located north of Tokyo, were set to launch ‘Life Brewing Craft,’ a series of craft beers developed with recipes generated by NEC’s Agentic artificial intelligence (AI). The latest product consisted of a collection of four bottles designed for each age group from their 20s to 50s, priced at 1,980 yen (USD 13), tax included.

Japan Craft Beer Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Japan craft beer market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Japan craft beer market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Japan craft beer industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.