A Sake on Air News Bulletin: The State of Sake Exports

0:02Chris:The people of sake actually brought me into sake. Back in 1988 this place was actually in Ginza on the main drag.

0:08Hitoshi Utsunomiya:At first it was kind of soy sauce, it was miso.

0:10Chris:To the point where it actually changed my life. New Year's Day 1989.

0:15Shuso Imada:Not just sake as a beverage but all the culture and history. Hello, and welcome to another episode of Sake On Air The world's first podcast dedicated to expanding the dialogue around Japan's iconic beverages Sake, shochu, and of course, awamori I'm one of your regular hosts, Chris Hughes And this is another of our new bulletin format episodes So, grab a sake, or other tasty beverage make yourself comfortable, and I will begin. At the start of each year, the Japan Sake and Shochu Makers Association, JSS, holds a press conference to share the past year's export figures and future export strategies.

1:07Shuso Imada:I went along this year to get the lowdown for sake on air. The conference was presented by Hitoshi Utsunomiya, director of the association, and our very own Imada-san. Those of you who've tuned into our future Sake Summit some years back may remember Utsunomiya, but suffice to say he is a prominent figure in the sake industry with a wealth of experience and expertise, and he has also penned a number of books, including one with popular gastronomist Maria Chiba. In other words, we're in good hands for this conference. First up, some great news. Export volume and value was up 6 % and 8 % respectively.

1:49Shuso Imada:So to give you the figures, that's 30 ,350 kilolitres and a total approximate export value of 45.9 billion yen, which is roughly 306 million US dollars. The official production yield for 2025 is not yet available. But given that in 2024 it was approximately 285 ,000 kilolitres, and every year this is decreased by about 6%, which in itself is a bit of a talking point, that puts my estimate of the export ratio at around 11%. So basically 11 % and everything that's crafted in Japan is exported. But please do take this figure with a bit of a pinch of salt, because the official ratio wasn't revealed in the press conference, which I did find a little bit strange.

2:43Shuso Imada:Perhaps that's not such a big talking point. But I think based on, I think it was about 7 % last year or the previous year. So I think that's quite a realistic estimate. Anyway, even more impressively was that sake was exported to a record 81 countries. Is there anywhere that they don't export sake to, that we're not exporting sake to? I don't know. I mean, I've had a look at the list and I can't see many obvious ones missing. The top export country by value, as always, was China, which was also the second by volume. Approximately 13.3 billion yen, that's up 14%, and 6 ,660 kilolitres, up 25%.

3:33Shuso Imada:The top country by volume, but second for value, was the US, with 7 ,720 kilolitres and 11.1 billion yen. But in the case of America, it actually saw a 3 % drop, respectively. Third for value was Hong Kong, but only fifth for volume. In third place for volume and fourth for value, Korea saw a 17 % and 12 % increase respectively. And Canada and France both recorded their highest ever figures. There was very little movement from fifth place and below. We will put a kind of a ranking of all the maybe top 10, top 20 countries in the show notes. So please check that. The top three countries accounted for about 85 % of the total volume and 89 % of the total value.

4:35Shuso Imada:It's normally highlighted the fact that the overseas average price per litre was double that of domestic, which is about 740 yen according to official liquor tax office data. However, China saw a slight drop of almost 1 ,000 yen, suggesting that there is a demand for cheaper sake now Perhaps due to the variety that is now available over there Following the post-pandemic peak, prices have pretty much levelled off Hong Kong, Macau and Singapore continue to record the highest average prices at over 2 ,000 yen per litre And to be honest, there were very few surprises for me in those figures Basically, the takeaway is that the sake export industry still relies heavily on the US and China Utsunomia went on to explain that there was room for growth in countries like Mexico and Brazil which have many Japanese restaurants and also in Central Europe, Poland in particular and Africa and the Middle East Utsunomia next went on to explain the various export obstacles tariffs, tax, 10 % in the US versus 100 % in India.

5:49Wow, didn't know that.

5:51Shuso Imada:Inflation, the complex and varied licensing laws, strict labeling regulations, required subscription to specific food safety and quality assurance frameworks, such as the FDA in America, ensuring that accurate messaging about safe alcohol consumption are communicated in the local language, packaging waste restrictions, like recycling, essentially, such as those found in Europe, radiation-related restrictions, which are still being enforced by China, and the fact that sake, seishu, does not easily fit into a lot of countries' existing alcohol categorization. He went on to cite other less regulatory challenges.

6:35Shuso Imada:The rising cost of raw ingredients, namely rice, exchange rate, decreased alcohol consumption, which can be countered with a focus on the experience element, pairing with food and sake culture, the dropout of the middle-class restaurant segment. Basically, there is now only affordable dining or high-class dining. There isn't really anything in between. And finally, quality control. There's also a need to change the way we promote sake overseas, he continued. Rather than just the usual, it's delicious, we need to sell it as a beverage that is sustainable and good for the environment. Of course, now we can also include the UNESCO certification in that.

7:17Shuso Imada:He acknowledged that there was also a need to provide support to smaller buyers who have little or no experience exporting sake, maybe inviting them to Japan to connect face-to-face with the brewers, for example. I learned that every year around the end of January, the Sake Export Association, which was established in 2014 by the JSS Japan Wholesale Liquor Association and the Tokyo Wholesale Liquor Dealers Association, and bear in mind those are rough translations of the Japanese, gathers with trade organizations like Jetro and JFudo and related ministries and agencies to discuss the future basic export strategy.

7:59Shuso Imada:Past strategies included the Cool Japan strategy and in 2020 the Action Plan slash strategy for expanding exports of agricultural forestry and fishery products and foods in which sake was designated as a key export item together with shochu, awamori and Japanese whiskey An export target was also set back then of 60 billion yen by 2025 Now, you've heard the figures Sadly, they haven't achieved that target Largely thanks to a certain pandemic and regulations in China But the target has been updated to quite an ambitious 76 billion by 2030 Furthermore, in 2022, the JSS received certification as an Agricultural Forestry and Fisheries Products and Food Export Promotional Organization which enables them to receive support from Jetro.

8:58Shuso Imada:Reflecting on the previous year, effects were felt from the US tariffs and global inflation and with rising fuel costs it's become difficult for brewers or their representatives to attend or exhibit at overseas exhibitions and other such events. Positive influences include the Osaka Expo which the JSS was able to promote SAKIT at and partnerships with sommelier associations such as the ASI and UDSF, which is helping to get Sake into more fine dining establishments. They also attended the usual exhibitions such as Pro Wine in Dusseldorf and they also worked with the International Sommelier Association to run Sake events on Sake Day, which is October 1st.

9:43Shuso Imada:The JSS has also been playing a supportive role in Sake competitions around the world, such as the ASI Best Sommelier of Asia and Pacific 2025, and masterclasses and running masterclasses for sommeliers around the world. As one press release headline put it, interest in Japanese sake expands among the world's sommeliers. However, the fact remains that despite the positives, sake is just 1 % of the global liquor market. More education, advocacy, and sales routes are needed if SACA is to make any more impact. Utsunomia next broke the strategy down further by country. In the US, they need to expand beyond the southwest.

10:29Shuso Imada:It's also worth noting that one reason for the drop in exports to the US, which was that was 3%, could be attributed to the fact that exports to Canada, which previously went via the US, are now going direct, mainly thanks to the tariffs. More government-approved official sake buyers in Canada are actually adding sake to their portfolios, but more PR and education is still needed to tap the rest. In Europe, Europe has seen 300 % growth over the past decade, the UK and France in particular are the top performers, with France recording around 450%. This is largely thanks to local competitions like the Curremaster and the IWC helping to raise awareness around the beverage among sommeliers and restaurants.

11:17Shuso Imada:However, in the centre of Europe, the market is still quite small, but there is plenty of potential. For example, in Poland, people are switching from beer and vodka to wine and sake. The plan is to focus on partnerships and education programmes to grow sales in this region. And in China and Taiwan, the fact that people are allowed to bring alcohol into restaurants kind of makes sommeliers almost obsolete. And perhaps due to a struggling real estate market, there is less call for high quality sake as gifts for clients, etc. Korea, on the other hand, is really excelling, recording the highest ever export value.

11:58Shuso Imada:This can be attributed to a switch from cheaper to higher priced sake. In China, Taiwan and Southeast Asia, social media is being used to promote sake to the younger demographic and bring them to offline events Utsunomi explained that they would like to support this through sales initiatives to inbound tourists However, running alcohol ads towards potential inbound visitors in those countries is a bit of a minefield And so research will be required before they can actually start designing any promotional campaigns Utsunomiya then passed the baton to Imadesan to elaborate more on their inbound strategy.

12:37Shuso Imada:Imadesan reported that the JSS Information Centre, where we often record this show, has been receiving around 3 ,000 visitors from overseas a year since it newly opened in 2016, and that's accounted for about 30 % of the overall traffic. This kind of traffic ratio is reflected at establishments across the country. Inbound traffic was up 16 % in general on the previous year Foreign tourists are big spenders Spending almost double that of residents However, the liquor industry simply isn't capturing this extra spend for whatever reason First, we need to get people buying sake when they visit, Imada explained To this end, the JSS has been working with airports like Haneda International Airport in Japan to promote sake, sometimes inviting brewers to partake in sales promotions.

13:32Shuso Imada:So progress has been made here. At first, the brewers would bring the same reasonably priced sake that they sell locally. So that's, you know, sake on the cheaper end. But once they realized that visitors were prepared to spend more and were actually looking for higher priced products They began to bring more exclusive premium sake At the end of the day, these high prices are still lower than those in their home countries So tourists from China, Taiwan and Hong Kong in particular Often come to Japan to buy expensive sake cheaper and take advantage of the wider variety here Next we need to get people drinking sake when they visit This is where Japan is still struggling Visitors come to eat Japanese food like sushi, tempura, yakiniku, etc But they rarely order sake in these establishments And to be fair, locals don't either So where are people most likely to go and order sake?

14:29Shuso Imada:Well, of course it's going to be drinking establishments Places that you go to in the evening as opposed to during the day So in the case of Japan, we're talking mainly about establishments called izakayas But it's become clear that many tourists simply do not know where to go or how to order. Izakayas can be quite intimidating places. That's why the JSS is currently working on an Izakaya map that will function like a Google map for sake. We recently put out an episode about Izakaya in general and also the Izakaya map and Dei Marisan joined us. So please check that out. One important part of this project is to train the izakayas that want to cater to inbound traffic how to better meet their needs.

15:16Shuso Imada:A lot of places actually don't realize that it's still possible to provide a satisfactory service with very little English. There are many success stories, but most local places still lack the essentials. Manusan continued, we also need to provide memorable and immersive opportunities for people to connect with sake. It's experiences like these that will create free word-of-mouth promotion, especially on social media and the internet. And it's this promotional PR that sows the seeds for consumption. Outside the so-called Golden Route, the ski resorts are actually also very popular locations for tourists.

15:56Shuso Imada:In the peak season, the skiing areas of Nagano can be almost 50 % overseas visitors. So there are plans to promote sake at these resorts as well. Sake breweries themselves, with easy access and a sake shop, are also reporting sales growth from inbound visitors. And the key to growing sake brewery tourism is integrating breweries into overarching tour packages. So including other tourist spots such as Onsen, for example. I think it's rare that people will want to visit breweries on their own, unless they are obviously big sake fans already. The JSS is also running sake experiences at the Information Center in conjunction with Airbnb.

16:42Shuso Imada:Madison is one of the hosts of that, and I know that he's doing a fantastic job and turning a lot of people into sake fans. Following the presentation, it was time to take questions from the press. Now, I'm only going to provide a kind of a snapshot of the questions because there was quite a few. So one reporter asked about country-specific trends, and this is a question I often get asked whenever I'm doing sort of a seminar for Japanese tour guides or people in the industry. It's not me that explained that the US generally prefers drier sake. China prefers sweeter and fruity sake, while Europe prefers more complex styles like Yamaha and Kimoto.

17:22Shuso Imada:And basically, if you try and go and sell a lighter sake over there, kind of the fruity floral sake, it can struggle a bit because it's kind of often regarded as more of an aperitif sake, not something that you can really pair with food, main dishes necessarily. Now, of course, all of these are kind of generalizations, and it might not ring true in your particular experience. If there are any importers listening and this doesn't kind of make sense, well, you know, it is just the kind of, they are just kind of the stereotypes. Another reporter asked about the effect of tariffs and rice prices, a drop in rice exports.

18:01Shuso Imada:It actually turns out that there's been, there hasn't been that much of an effect. that surprised me as well to hear that actually but i guess it makes sense because sake the the timing of when sake is imported might have slightly missed the um that when the tariffs were put into place so maybe the effects of that will be felt in the future and it's kind of it's a delayed effect so to speak but basically while importers are absorbing inflation the exchange rates and tariffs, prices inevitably will have to rise eventually. But what's more important is making sure Saki is able to make the right impression.

18:43Shuso Imada:In other words, communicating its value is key. Utsunomya next shared some data regarding the ongoing rice crisis, and this was really, really interesting. The price per 60 kilograms of Yamada Nishiki rose about 6 ,000 30 US dollars in 2025. That's a huge rise, but even more striking is that the price for ordinary eating rice has almost doubled. These higher prices mean that sake rice farmers are now switching to eating rice, because quite simply it makes them more money. This in turn is creating a sake rice shortage. Some breweries are switching to ordinary eating rice, but are having to ask the banks for money to afford these new prices.

19:29Shuso Imada:However, banks don't just simply hand out more money because rice is more expensive. Well, this is where, thankfully, the government has stepped in and is starting to provide emergency rice stocks to brewers and funding. They basically had a stockpile of rice for sort of emergencies, and it basically, even though funding is available for brewers, it's still very limited. The only way that the majority of brewers are going to be, well, smaller breweries in particular, are going to be able to survive in the long term is to increase their prices. So I think that's on the horizon. So that wraps up my report of the press conference.

20:10Shuso Imada:And I would just conclude with my final thought. And my overall takeaway is that, well, exports of sake are booming. um it's good news but alone are not enough to prop up the sake industry here in japan and with rising rice prices and other factors the waters ahead may still be quite choppy but when people overseas are getting more interested in sake i think kind of with the reverse boomerang effect this actually helps raise the profile of sake in japan as well I think when things are popular overseas that always makes people interested here in Japan and so and at the end of the day we need to get people buying drinking more sake here in Japan that is without a doubt so I found the press conference very interesting I don't know if Sake On Air will attend every year but maybe once every two years because I don't know if the content of the press conference will change that much year on year but i found it very very interesting i'm really glad i went along and i hope you found this little bulletin interesting as well and if you have please be sure to let us know on our social media and rate us wherever you listen to your podcasts and we will be back with more sake on air very soon thanks for listening and kanpai

21:42Hitoshi Utsunomiya:Sake On Air is made possible with the generous support of the Japan Sake On Shochu Makers Association and is broadcast from the Japan Sake On Shochu Information Center in downtown Tokyo. It is produced by Export Japan. And our team is Shuso Imada, Justin Potts, Arlene Lyons, Cindy Bissig, Chris Hughes, Chris Pellegrini, John Gottner, Marie Nagata, Miho Ota, Rebecca Wilson-Wye, Sebastian Juan, and me, Frank Walter. Until next time, Kanpai!