Embracing Change: Asahi Breweries' Shift to Low-Alcohol Alternatives

Asahi Breweries will refrain from releasing new chūhai products with alcohol concentrations above 8%, reflecting Japan's changing drinking situation. This move signals a significant shift in beverage consumption trends, as the country gradually transitions to low-alcohol options.

The Rise and Fall of High-Alcohol Chūhai

Suntory Holding's Strong Zero is a popular chūhai brand in Japan, offering canned cocktails with shōchū or vodka as main ingredients. Despite a consistent drop in beer sales, these products were extremely popular, to the point where they were mocked on social media. The high-alcohol chūhai era appears to be ending.

ndustry-Wide Transition: Asahi and Sapporo Lead the Way

Asahi's new strategy, developed in the fall, was announced last month with the dual goals of reevaluating the company's product portfolio and encouraging responsible drinking. According to a spokesperson, the company is committed to improving its portfolio of low-alcohol alternatives in order to achieve 20% of sales volume from goods containing 3.5% alcohol or less by 2025.

Despite this statement, Asahi offers a variety of chūhai alternatives, including the notable 9% Clear Cooler Strong collaboration with Seven & I Holdings.

Sapporo Breweries, like other companies, has indicated that it will not release new canned chūhai products with alcohol levels higher than 8%.

The Rise of Mindful Drinking

These strategic decisions by key players in Japan's beverage industry reflect a broader trend toward low- or no-alcohol alternatives. In the face of a declining market, industry leaders are scrambling to adapt to changing client tastes and habits.

Despite Japan's long-standing drinking culture, which is intimately related to social and professional contexts, there has been a definite drop in alcohol usage, which corresponds with the decreasing population. In addition, the health-conscious and sober lifestyles of millennials, and particularly Generation Z, are driving the need for alcohol-free and low-alcohol options.

While drinking was once an integral part of hanging out with friends, consumers now have more options for entertainment, such as streaming services and video games, which has led to a decline in drinking's social primacy and a shift in what people drink.

This ‘mindful drinking’ culture is becoming popular around the world, including in Japan, as people become more aware of the hazards of alcohol and its effects on their health.

Expanding Low-Alcohol Offerings

The advent of alcohol-free gins and other similarly branded non-alcoholic alternatives has changed customers' perceptions of drinks in recent years.

Recognizing the significance of this trend, Asahi Breweries intends to expand its offering of low- and non-alcohol beverages. Orion, an Okinawan corporation, also hopes to capitalize on this increasing market.

Consumers looking for healthier and more refreshing options are increasingly turning to non-alcoholic beer, and Kirin, another key industry participant, understands this trend.

Although there is significant development in Japan's low-alcohol sector, it remains modest in comparison to traditional alcoholic beverages. Nonetheless, researchers believe that the market for alcoholic ready-to-drink beverages will continue to grow, with large retail sales projected by 2026.

Government Oversight and Public Health Concerns

Concerned about public health and safety, government officials are also monitoring changing drinking trends and emphasizing the importance of responsible alcohol use.

The hazards of drunkenness, which include liver disease, stroke, and an increase in marital violence and abuse, have caused health officials to issue a warning. The so-called "strong-kei" goods are particularly concerning because of their similarity to potentially harmful substances, as well as their high alcohol content and inexpensive cost.

Amid these concerns, the Japanese government is preparing to establish national drinking guidelines, which will encourage people to limit their alcohol consumption in order to avoid health risks. A previous misstep by the government in pushing increased alcohol consumption during the pandemic sparked public outrage; thus, the need for balanced messaging is recognized.

As early as this spring, they are likely to encourage the public to cut back on alcohol consumption, with daily limits set at 40 grams for males and 20 grams for females.

Adapting to Changing Consumer Dynamics

Customers' preferences and habits in Japan's beverage industry are always changing, therefore, enterprises serving the country must adapt as well. Companies must innovate and diversify their offerings to remain relevant in a dynamic economy as their customer base decreases and ages.

People are seeking more options and moderation in their drinking habits, which reflects broader cultural developments. Whether it's a refreshing mocktail or a deliberately crafted low-alcohol beverage, the industry is making it clear that there's something for everyone as it navigates these changes, inviting everyone to join the burgeoning drinking culture.

Based in Tokyo, An-yal is the leading independent advertising agency for global lifestyle brands in Japan and worldwide. Contact us to get ahead with your integrated marketing and creative needs.