Japan is the largest imported wine market by volume in the Asia Pacific region and Australia’s 8th largest export market. As such, it is a vital market to consider for Australian wine exporters. Wine Australia recently hosted a webinar with market experts from both Wine Australia and Austrade to give current and potential exporters an overview of the market. This Market Bulletin will give a summary of the market and consumer insights that were shared.
Click here to access the recording of the full webinar.
A significant wine market in the Asia Pacific
Japan is classified by IWSR as an “established” wine market – which are markets with strong historical growth that is tailing off. However, at 3.1 litres of wine per adult per year, Japanese wine consumers have a much lower per capita consumption compared to other established markets (like Australia at 22.3 litres per adult per year)[1]. But consumption per person is much higher than a majority of Asian destinations – like Singapore (around 2 litres per adult), South Korea and Taiwan (around 1), and other destinations are even lower (like Thailand and Malaysia).
Total wine consumption in Japan has declined on average by 2.5% per year over the last 5 years to reach 36 million 9-litre cases. Both volume and value are expected to decline slightly over the next five years, according to IWSR.
Figure 1: APAC wine consumption – imported vs locally produced
Source: IWSR
Japan imports more wine than any other market in the Asia Pacific region – 63 per cent of its total wine consumption. By value of total imports, it is second to mainland China. Another important aspect of the Japan market is the size of the white wine market. Although white wine has a similar market share in Japan as it does in South Korea, India, and Thailand – the total size of the Japanese market means that its white wine consumption is significant for the region (see Figure 2).
Figure 2: APAC still wine consumption by colour
Source: IWSR
Japanese wine consumer trends
Although the total number of wine consumers has declined since 2023 due to an ageing population, moderation, and the cost-of-living crisis, there has been an increase in the number of younger wine drinkers and their level of involvement with the category. This has led to a stable population of regular wine drinkers. According to IWSR, regular wine drinkers are evenly split between male and female consumers. Chardonnay is one of the most popular varietals across age groups, but it is most popular amongst the younger generations. Shiraz also seems to be much more popular with Gen Z than older consumers, which could be an interesting opportunity for Australian wine producers. Cabernet Sauvignon is the most popular red variety across generations.
As the cost-of-living crisis impacts on consumers’ ability to purchase luxury goods like wine, there has been some evidence of down-trading. In 2024, wines priced between ¥520 to ¥1,082 per bottle (“Standard” wines according to IWSR), increased in sales and Australia was a beneficiary of this growth. Most Australian wines are sold in either this segment or the “Premium” price segment (¥1,083 to ¥2,138 per bottle).
According to research from 2021 by Starburst Insights, Japanese wine consumers see Australian wines as accessible and good value for money – which has been positive during times of economic hardship. Australian wines are also seen as pure, natural, sustainable, and unique.
Positive Australian export performance
Australia has a relatively low share of the Japanese wine market compared to other markets in Asia – 5 per cent of volume and 3 per cent of value – meaning there is plenty of room for growth if share can be captured from other source countries.
In the 12 months ended March 2026, Australian wine exports to Japan rose by 5 per cent in volume to 11 million litres and 10 per cent in value to $49 million. All the top three varietals (Chardonnay, Cabernet Sauvignon and Shiraz) grew in value, and growth was experienced across the price spectrum.
Click here to access Wine Australia’s Export Dashboard for more detailed data.
Figure 3: Exports to Japan by price segment, 12 months ended March 2026
Taking a longer-term view, exports to Japan rose immediately following the Japan-Australia Economic Partnership Agreement coming into force in 2015 and have grown by 2 per cent in value on average in the years since (noting year-to-year volatility). Volume increased at a faster rate than value initially as import tariffs on bulk wine were eliminated immediately and tariffs on bottled wine were gradually removed. All Australian wine exports are now tariff free.
Click here to access the Japan Export Market Guide.
Figure 4: Volume and value of Australian wine exports to Japan
[1] Levy-payers and exporters can access this data through Wine Australia’s Market Explorer Tool.