Japan’s Beverage Industry Embraces Alcohol‑Free Cocktails to Hook Gen Z

Japan’s Beverage Industry Embraces Alcohol‑Free Cocktails to Hook Gen Z

Rethinking the Drink Culture: Japan’s Low‑Alcohol Revolution

Forget the image of college kids drowning themselves in cocktails. 22‑year‑old Manaka Okamoto plans her day, checks her schedule, and decides whether a glass of something sober fits the bill before she even thinks about a drink.

“If I have to get up early, I’ll hold off on the booze and slip into a non‑alcoholic option instead,” she explains. “That way I stay keen on how alcohol feels when I’m alone. And when I’m with friends who prefer a dry toast, it’s great to have something to clink against.”

A Global Trend in Growth

The rise of low‑ and non‑alcoholic beverages is a worldwide wave, a surge that blew up during the pandemic. Analysts say the global market for these drinks hit just under $10 billion in 2021, up from about $7.8 billion in 2018.

Japan’s Unique Shift

  • Japan’s aging population has shrunk the domestic drinking pool.
  • Only 7.8 % of Japanese people in their 20s were regular drinkers in 2019.
  • That’s a fall from 20.3 % in 1999.

With revenue from alcohol in drag, Japan’s tax office issued a contest in July, asking for fresh ideas to entice younger palates.

Industry Players Going Global

Major manufacturers are eyeing markets beyond their borders. Asahi Group’s chief told Reuters that North America represents a key frontier. Suntory is launching a canned cocktail line in the U.S. as well.

Turning Bars into Inviting Boulevards

In Roppongi, a no‑alcohol “beer garden” emerged, courtesy of Suntory and TV Asahi, offering mocktails and non‑alcoholic wine in place of the usual lager.

  • “People don’t just drink for the booze anymore; they crave the chatter and the ambiance.” – Masako Koura, Suntory GM.
  • Kirin Holdings’ booze‑free beer sales jumped over twice in the first half of the year.
  • Sapporo Holdings reported a 20 % rise in domestic low‑/no‑alcohol beer sales, though its canned beer dipped 4 %.

Sumadori Bar: A Friendly Gathering Spot

Located in Shibuya, the Sumadori Bar—“smart drinking” in Japanese—serves elaborate sugary drinks that can be alcohol‑free or have up to 3 % alcohol.

Chief executive Mizuho Kajiura brings a unique perspective, having spent two years in Indonesia, a largely Muslim country where hospitality practices shaped his vision.

“Our bar values those who choose not to drink and invites them to share moments with those who do,” Kajiura says. “If more restaurants and bars hop on this, it could open a floodgate of new customers.”

With the cocktail culture shifting, Japan isn’t just keeping pace—it’s redefining it.