Addressing the demand in the rapidly expanding Southeast Asian market for Japanese sake.
October 30th – In FY2022, sake exports reached a record high for the 13th consecutive year, reaching approximately 4 million 9-liter cases and 47.5 billion yen to 72 countries and regions. In fact, sake exports have grown 2.5 times in quantity and 4.5 times in value over the past 10 years, with a Compound Annual Growth Rate (CAGR) of 18% for export value during the same period. Additionally, the unit export price per 720 ml bottle in 2022 was 953 yen, more than double the price in 2013, indicating an active export market for high-quality sake.
Asia and North America account for about 65% and 25% of exports, respectively, and these two regions have become the core of sake exports. Asia, in particular, has increased its share of exports from 49.4% to 65% over the 10-year period from 2013 to 2022, and the value of exports has also increased six-fold.
In order to further increase the presence of sake in Asia, the Japan Sake and Shochu Maker’s Association (JSS) is implementing and planning a variety of activities. In May of this year, a consumer event took place in Beijing, and another one was just held in Shanghai on October 28. The Chinese market has grown approximately 27-fold over the past decade, and has made steady progress in capturing local demand in line with economic growth.
Meanwhile, in Southeast Asia*1, the value of exports has grown significantly over the past decade, approximately five times, exceeding the average growth rate of sake exports overall, but the JSS believes it is necessary to aim for further growth in the future. Even in the wine industry, which is currently leading efforts in the region, according to an IWSR survey, wine accounts for only about 1.6% of total alcohol consumption in Southeast Asia*2 in 2022, or about 22 million cases (9L equivalent).
JSS, in an effort to gain proper recognition and stimulate demand for sake, will put particular emphasis on the educational aspect this year, and will actively conduct sake master classes, mainly for restaurant owners and sommeliers. The first class was already held in Thailand on September 21 at Orihara Shoten Bangkok. The master class was conducted by Sean Ou, who is the representative of The Beverage Clique, an educational institution in Singapore that offers courses not only on sake, but also on wine, whiskey, tea, etc., and is also the overseas support desk of the JSS. Sean Ou is well known for his easy-to-understand lessons on the appeal of sake, comparing it to wine and other alcohol categories.
The seminar commenced with an explanation of the sake-making process. This was followed by a discussion on the various categories determined by the rice polishing ratio and the ingredients used in sake production. Additionally, the seminar covered the concept of the Sake Meter Value (SMV) as a reference point for evaluating the taste of sake. Sake-density, which measures the specific gravity of sake in comparison to water, is generally classified as dry when positive and sweet when negative. Nevertheless, the flavor of sake is also significantly influenced by other factors such as AVB, acidity, and the rice polishing ratio, all of which were also elucidated.
According to Sean, the number of Japanese restaurants and Japanese fusion restaurants in Thailand, Vietnam, Singapore, and other Southeast Asian countries is increasing, and interest in sake is growing accordingly. However, he also points out various barriers to understanding sake, ranging from its production methods to a lack of comprehension regarding category regulations. During the Master Class, he revealed that he received basic questions such as, ‘Is sake a spirit?’ or ‘What is the difference between sake and wine?’ along with practical questions like how to serve sake and conduct food pairings.
Sean highlighted that sake is still not well-known in Thailand and other Southeast Asian countries, and it is often only associated with Japanese cuisine. If sake remains exclusively paired with Japanese food, its potential for widespread acceptance is limited. Sean believes that the naturally pleasant rice-derived sweetness of sake makes it well-suited for pairing with local dishes, particularly in Southeast Asia, known for its spicy cuisine, including dishes like chili crab, bak thai, and hot pot. He also mentioned the potential for sake to gain broader acceptance in the region in the future. In promoting sake in Southeast Asia, Hitoshi Utsunomiya, Director of the JSS, said, “In the future, we hope to promote the diversity and regional characteristics of sake and expect synergistic effects with inbound tourism.”
As Sean pointed out, strengthening sake education is of utmost importance to increase the understanding of sake and its compatibility with local cuisine. The Sake Master Class in Malaysia is scheduled to take place at The RuMa Hotel and Residences in Kuala Lumpur on Thursday, November 23, 2023. The event is being organized in collaboration with the Malaysian Sommelier Association, which is actively inviting participants, particularly its members. A similar program is also in the works for Vietnam, set to be held in March 2024.
