Japan Tequila Market Research Report, 2028

The popularity of cocktails, including margaritas, has been rising in Japan. Tequila is an essential ingredient in many cocktails, and this has contributed to the increased demand for tequila among Japanese consumers. Bartenders and mixologists are also experimenting with tequila-based cocktails, showcasing the versatility of the spirit. While the consumption of tequila in Japan has been on the rise, it is still not as popular as other spirits like whiskey or shochu. However, there is a growing interest among Japanese consumers, particularly in urban areas, to explore tequila as a premium and exotic spirit. The demand for premium tequila has been increasing in Japan. Consumers are willing to pay higher prices for high-quality, aged tequila with complex flavors. As a result, many tequila producers have started introducing premium and ultra-premium offerings in the Japanese market. The tequila market in Japan is still relatively young, and there is a need for education and awareness about the spirit. Japan has a strong appreciation for high-quality and artisanal products, and this preference extends to tequila as well. There is a growing interest in premium and craft tequila among Japanese consumers. This has led to an increase in the availability of high-end tequila brands and limited-edition releases in the Japanese market, catering to the demand for unique and exclusive offerings. Japanese cuisine is renowned for its delicate flavors and intricate food pairings. In recent years, there has been a growing interest in pairing tequila with traditional Japanese dishes. Tequila's versatility and flavor profiles make it an intriguing choice for pairing with sushi, sashimi, yakitori, and other Japanese culinary delights. This trend has contributed to the exploration of tequila as a sophisticated spirit in Japan. According to the research report "Japan Tequila Market Research Report, 2028," published by Actual Market Research, The Japan Tequila market is expected to add more than 92.09 Million by 2028. The tequila market in Japan had some unique characteristics and trends. Some of a few notable aspects such as Limited Tequila Production in Japan, Premium and Craft Tequila, Pairing with Japanese Cuisine, Collaboration and Limited-Edition Releases, Tequila Bars and Specialist Retailers. The government's involvement in the alcohol industry in Japan are as Regulatory Framework, Taxation and Excise Duties, Licensing and Permits, Trade Agreements. In the Japanese tequila market, you can find various types of tequila, including Blanco tequila, also known as silver or white tequila, is clear and typically unaged or aged for a short period of time (up to two months). It has a crisp and pure agave flavor. Reposado tequila is aged in oak barrels for a minimum of two months but less than a year. It develops a golden color and has a smoother taste compared to Blanco tequila, with hints of caramel and vanilla. Añejo tequila is aged in oak barrels for a minimum of one year but less than three years. It has a darker color and a complex flavor profile with notes of oak, chocolate, and spices. Añejo tequila is generally smoother and more refined than Reposado and Blanco tequila. Apart from Blanco, Reposado, and Añejo, other variations of tequila in the Japanese market are Extra Añejo tequilas that are aged for a minimum of three years, as well as specialty tequilas that are infused with different flavors such as fruit or spices. Some popular brands of Blanco tequila available in Japan include Patrón Silver, Don Julio Blanco, Herradura Silver. Some well-known Reposado tequila brands in Japan include Casamigos Reposado, Jose Cuervo Tradicional Reposado, El Tesoro Reposado. Some notable Añejo tequila brands available in Japan include Don Julio Añejo, Herradura Añejo, Casa Noble Añejo.

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The tequila market in Japan can be categorized into different grades based on price and quality. These grades typically include Value tequilas are generally more affordable and cater to price-sensitive consumers. They are often younger expressions, such as Blanco (unaged) or joven (Blanco with added colorings or flavorings). Value tequilas offer a basic tequila experience without extensive aging or complex flavor profiles. Premium tequilas represent a step up in terms of quality and price. They are often aged for a short period, typically up to one year in oak barrels, which imparts some complexity and smoothness to the spirit. Premium tequilas may include reposado (aged for a minimum of two months) and occasionally añejo (aged for a minimum of one year). High-end premium tequilas are positioned as more luxurious and refined offerings. They are typically aged for a longer period, usually between one and three years, resulting in a richer flavor profile and smoother character. Añejo tequilas often fall into this category. Super premium tequilas are the pinnacle of quality and price in the market. They are often made from the finest agave plants and aged for an extended period, frequently exceeding three years. Extra añejo tequilas, aged for a minimum of three years, are common in the super premium category. These tequilas offer exceptional complexity, refined flavors, and a luxurious drinking experience. In recent years, there has been an increasing interest in premium and high-quality tequila among consumers in Japan. While value tequilas are still available and consumed, the demand for higher-end and super premium tequilas has been growing. This trend can be attributed to a combination of factors, including a greater appreciation for artisanal and craft spirits, the influence of mixology culture, and a desire for unique and high-quality drinking experiences. In the Japanese tequila market, tequila is typically distributed through two main channels: off-trade and on-trade. The off-trade channel refers to the retail distribution of tequila through stores where consumers can purchase tequila for consumption at home. This includes supermarkets, liquor stores, convenience stores, and online retailers. Off-trade channels are popular for consumers who prefer to buy tequila bottles to enjoy at their own convenience or for hosting gatherings or events. Off-trade distribution allows consumers to choose from a wide range of tequila brands and types available on the market. The on-trade channel refers to the distribution of tequila through establishments where consumers can consume tequila on-site, such as bars, clubs, restaurants, and hotels. In the on-trade channel, consumers have the opportunity to explore different tequila offerings, try cocktails or mixed drinks, and engage with knowledgeable bartenders who can provide recommendations and guidance based on individual preferences. On-trade establishments often curate their tequila selections to cater to the preferences of their target audience. both off-trade and on-trade distribution channels play significant roles in making tequila accessible to consumers in Japan, catering to different consumption occasions and preferences. Considered in this report • Geography: Japan • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028

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Kripa Shah

Senior Analyst

Aspects covered in this report • Japan Tequila market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type • Blanco • Reposado • Anejo • Others

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By Grade • Value • Premium • High - End Premium • Super Premium By Distribution Channel • Off-Trade • On-Trade By off-trade Distribution Channel • Supermarkets and Hypermarkets • Discount Stores • Online Stores • Others By On-trade Distribution Channel • Restaurants and Bars • Liquor Stores • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us. we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Tequila industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.