Market Overview

The domestic beverage market size rose to 5.28 trillion yen for FY2024, representing 102.3% of the previous fiscal year, based on the shipment value of manufacturers. Fueled by heat waves and consumer stockpiling, market exhibited growth for four consecutive years.

However, the sales volume remained nearly the same as the preceding fiscal year, indicating that the market is not experiencing substantial growth. Since most of the growth has resulted from product price increases, it is important to assess numerical and structural demand separately. Although consumer remain budget conscious, after a series of phased price hikes, consumers have become desensitized to price increases, preventing a sharp drop in demand. Nonetheless, in terms of volume, sales have largely stabilized at prior fiscal year’s level, suggesting that the market may be approaching capacity.

Noteworthy Topics

Strong Sales of Mineral Water and RTD Teas

​Looking at the beverage market by category in FY2024, record-breaking heatwaves drove strong consumer demand for thirst-quenching products. The mineral water segment performed particularly well, showing notable growth both in value and volume. Private brand (PB) mineral water products increased their market presence with competitive pricing, while national brand (NB) products maintained steady sales, supported by strong branding and the market release of new products. For example, Suntory Tennensui Mineral Water achieved commercial success by targeting a new demand segment with its 1L PET bottle offering.

Demand stayed also strong for tea beverages. In the Japanese tea category, leading brands such as Iyemon (Suntory), Ayataka (Coca-Cola), and Namacha (Kirin) underwent full renewals, contributing to market revitalization. Meanwhile, Oi Ocha (Ito En) garnered attention by featuring a world-famous athlete in its advertising. Underlying demand for tea drinks continues to be supported by unsweetened, health-oriented products as well as products with a bold, bitter flavor.

Future Outlook

Against the backdrop of post-pandemic recovery in consumption, the beverage market continues to grow in value. Nonetheless, with sales volume appearing to reach capacity, leading beverage manufacturers are setting conservative sales target for FY2025. Since most companies plan to raise prices, this could restrain demand for beverages.


Given this environment, where unit prices are expected to rise even as sales volume may decline, the domestic beverage market in FY2025 is forecasted to reach 5.35 trillion yen, up 1.3% from the previous fiscal year. The impact of heatwaves is anticipated to be minimal.

Research Outline