Bottled Water - Japan

The Bottled Water market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese consumers have shown a strong preference for bottled water due to several factors. Firstly, there is a growing awareness among the population about the importance of staying hydrated and maintaining good health. Bottled water is seen as a convenient and accessible way to meet these needs. Additionally, concerns about the quality of tap water in some areas have also contributed to the popularity of bottled water.

Trends in the market: One major trend in the Japanese Bottled Water market is the increasing demand for premium and functional waters. Consumers are willing to pay a premium for bottled water that offers additional health benefits or unique flavors. This has led to the introduction of innovative products such as vitamin-infused water, alkaline water, and flavored water. Another trend is the rising popularity of eco-friendly packaging options. Japanese consumers are becoming more conscious of the environmental impact of plastic waste, and as a result, there is a growing demand for bottled water packaged in sustainable materials such as biodegradable or recycled plastic.

Local special circumstances: Japan's unique geography and climate also play a role in the development of the Bottled Water market. The country is known for its high levels of rainfall, which has led to an abundance of natural springs and underground water sources. This has allowed for the production of high-quality bottled water that is sourced locally. Japanese consumers often prefer domestically produced bottled water due to concerns about the safety and quality of imported products.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the Bottled Water market in Japan. Firstly, the country has a rapidly aging population, with a significant proportion of elderly consumers. This demographic is more likely to prioritize health and wellness, leading to an increased demand for bottled water. Additionally, Japan has a highly developed retail infrastructure, with a wide range of distribution channels available for bottled water. This makes it easy for consumers to access and purchase bottled water, further driving market growth. Furthermore, the tourism industry in Japan has been booming in recent years, with millions of visitors from around the world flocking to the country. Tourists often prefer to consume bottled water as a safe and reliable source of hydration while traveling. This has created a significant market opportunity for bottled water manufacturers, who can cater to the needs of both domestic and international tourists. In conclusion, the Bottled Water market in Japan is experiencing growth due to customer preferences for convenience, health, and safety. The market is characterized by the demand for premium and functional waters, as well as eco-friendly packaging options. Japan's unique geography and aging population, along with a well-developed retail infrastructure and a thriving tourism industry, are contributing to the expansion of the market.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.