The Japanese beer industry : driven by innovation

The Japanese beer market is an oligopoly dominated by two major players, Asahi and Kirin, who account for 75 per cent of the domestic market. Despite their market dominance, a range of demographic and other factors such as stagnant domestic demand, rising health consciousness and a declining population undermine their prospects for sustained growth. In this climate, the major brewers have introduced a wave of innovative products in recent times. While the major global brewers have focused on their core competencies, Japan’s brewers have instead opted for diversification. This paper offers an overview of the Japanese beer market, with a focus on the innovative products developed, the main features of market competition among the Big Four brewers, and a summary of their strategic directions.