Japan: Analysts forecast malt demand declining

Japan may purchase for 2006 about 500 thousand tonnes of malt or slightly more, according to analysts’ estimations. Malt demand is declining due to economic conditions and lower sales of full malt beer.

Japan’s beer and happo-shu consumption dropped by another 4,2 % in 2004, the new 3rd category beer (brewed without any malt) captured a 5 % market share.

Forecasts for 2005 are that all beer and ersatz beer sales will drop by 3 %, of which beer by 3,8 % and happo-shu by 16 %.

The Japanese liquor tax is so high that it may even produce a loss of tax revenues, because beer sales have dropped disproportionately.

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