Ireland, Scotland, the United States, and maybe even Canada spring to mind when you think of the largest and most recognised distillers and makers of whisky in the world. Except Japan. It’s not likely that Japan is producing whisky on par with the world’s best. Surely they’re just famous for being famous. Stop right there, ladies and gentlemen. There is a new wave of popularity for Japanese whisky. The recognition and appreciation for Japanese whisky has skyrocketed in recent years.
There are two primary types of Japanese whisky. Whiskies of both the single malt and blended variety. The equivalent of single malt whisky in Japan would be Scotch. Meaning it’s brewed from malted barley, as you’ll recall from reading our page on Scottish Whisky. The peculiar flavor of blended whisky is achieved by combining several different types of Japanese whisky.
Incredible growth after 25 years of decline
The statistics bear this out as well. The popularity of Japanese whisky increased as the country’s economy flourished in the decades following World War II. The global record for a single brand of whisky was reached in 1980 when Suntory Old sold 12.4 million cases (12 bottles per case). In 1983, 380 million liters of whisky were taxed, representing the peak of domestic consumption. The National Tax Agency collected this data, and as they treated whisky and brandy as interchangeable at the time, brandy is included. However, whisky makes up 90% of the total volume delivered.
The decrease started after 1983, when it reached its apex. Consumption had dropped to 230 million liters by the time the spirits tax law was changed in 1989 to do away with the grading system. The economic situation quickly deteriorated once the bubble burst. In 2001, 110 million liters were used, but by 2008, that number had dropped to 75 million liters, or about 20% of its all-time high. It was like going down from heaven to hell.
Whisky’s popularity declined steadily throughout the 25 years between 1983 and 2008. There was a financial crisis, a rise in popularity of nihonshu and wine, and even a surge in honkaku shochu during those years. Whisky rode along with the postwar economic boom, but it seems to have fallen behind as consumer tastes varied.
Whiskey’s fortunes turned around after hitting rock bottom in 2008. The high was reached in 2013, when consumption reached 100 million liters, and has since returned to around 170 million liters in 2018. This leads us to the unprecedented growth of the Japanese whisky market.
Both import and export numbers have seen remarkable growth since the recovery began. Data from the National Tax Agency shows that between 2009 and 2020, exports increased sixteen fold, from 1.7 billion yen to 27.1 billion yen. In 2020, whisky will become the most exported alcoholic beverage from Japan, surpassing sake for the first time. Only a twentieth as much was exported in the form of shochu, another distilled liquor. While $27.1 billion JPY is a staggering sum, considering the global scope of COVID-19, the crisis continues to escalate. As of August of this year (2021), exports totaled 34 billion yen; at this rate, they could reach 50 billion yen by year’s end (ed. — the actual tally was 46 billion yen). This is incontrovertible evidence of the worldwide success of Japanese whisky.
You can bet that at least one of the bottles pictured above has been on display in the aisles of your neighborhood liquor store at some point in the previous few years. You probably wouldn’t see them again if you went looking for them right now. This is a regrettable side effect of the widespread acclaim that Japanese whisky has received over the previous decade. But don’t worry! There’s a glimmer of good news in every cloud. Companies producing Japanese whisky have adjusted to meet rising demand. The percentage of imported Japanese whisky has surged 50 times between 2010 and 2019! The imported whisky price ranges from $1,000,000 to $50,000,000.
For the typical whisky drinker, this means a few things:
The increasing demand for Japanese whisky means we now have more options than ever before.
The rise in demand, however, creates a more competitive market, which could make some bottles tougher to come by as their popularity rises.
Common pours may rise in price until production can keep up with the surge in demand. However, this should become more balanced as time goes on and supply meets demand.
The Japanese whisky market was worth $650.0 million in 2020. For such a young industry, this is an incredible sum. Over the next five years, it is projected to increase by over 100%. The whisky industry is experiencing a second golden age. The demand for this venerable spirits is skyrocketing, and producers all around the world are scrambling to meet up. What the future holds for whisky is unknown at this point. But the future is certain to be a wonderful amber color.
The Rising Popularity of Japanese Whisky
In recent years, the world of whisky has witnessed a significant rise in the popularity of Japanese whisky. This trend is evident not only in the increased market share of Japanese whisky on platforms like Drizly but also in the growing average unit price of these coveted spirits. Japanese whisky has firmly established itself in the realm of luxury spirits, captivating the palates of whiskey enthusiasts and collectors alike.
On Drizly, Japanese whisky has experienced a notable surge, with its share of the total whiskey category increasing by 13 percent from the previous year. In 2021, the average unit price of Japanese whisky on Drizly reached $79.38, surpassing the average unit price for all whiskies, which stands at $36.72. This upward trajectory aligns with the broader trend of premiumization in the spirits industry, where luxury spirits have demonstrated a remarkable annual growth rate of 17.7 percent from 2015 to 2020, significantly outpacing the growth of other spirit brands.
The success of Japanese whisky extends beyond domestic consumption, with exports experiencing a staggering 233 percent increase in sales value since 2013. This growth has been primarily driven by industry giants Suntory Holdings and Asahi Group Holdings, which collectively account for over 90 percent of Japanese whisky production. With iconic brands such as Yamazaki, Hakushu, Nikka, and Miyagikyo under their portfolios, these distilleries have captivated whiskey aficionados worldwide with their exceptional craftsmanship and distinctive flavor profiles.
The growing interest in Japanese whisky can be attributed to the overall surge in global whiskey appreciation. As Alex Le, owner of Nasa Liquor in Houston, suggests, the increased fascination with whisky as a whole has undoubtedly fueled the interest in Japanese whisky. The meticulous attention to detail, unique production methods, and commitment to quality have earned Japanese whisky a well-deserved reputation for excellence.
As the popularity of Japanese whisky continues to soar, enthusiasts and collectors are eagerly exploring the diverse range of expressions available. From the delicate and elegant notes of Yamazaki to the smoky richness of Hakushu, Japanese distilleries offer a remarkable tapestry of flavors to tantalize the senses. Whether sipped neat, enjoyed on the rocks, or incorporated into craft cocktails, Japanese whisky promises an extraordinary drinking experience that transcends borders and captivates discerning palates.
Best Whiskey Online, the purveyor of exceptional spirits, invites you to discover the allure of Japanese whisky through their carefully curated collection. Their dedication to sourcing the finest expressions ensures that you can embark on a memorable whisky journey, exploring the rising stars of the Japanese whisky scene. As the popularity of Japanese whisky continues to ascend, it serves as a testament to the artistry and innovation that permeate the world of whisky.