The younger generation in Japan consumes less alcohol than their parents—a trend that has led to increased taxes on beverages such as sake (rice wine). The national tax agency in Japan has launched a national competition to generate ideas for reversing this trend.
The “Sake Viva!” campaign aims to devise a plan to make drinking sake more appealing and boost the industry.
The contest invites 20- to 39-year-olds to share their business ideas to kick-start demand among their peers – whether it’s for Japanese sake, shochu, whisky, beer, or wine.
The group running the competition for the tax authority says new habits, partly formed during the Covid pandemic, and an ageing population have led to a decline in alcohol sales.
It encourages contestants to devise promotions, branding, and innovative plans incorporating artificial intelligence.
Japanese media report that the reaction has been mixed, with some criticism regarding the bid to promote an unhealthy habit. But others have posted quirky ideas online – such as famous actresses “performing” as virtual-reality hostesses in digital clubs.
Contestants have until the end of September to put forward their ideas. Experts will help develop the best plans before presenting the final proposals in November.
The campaign’s website says Japan’s alcohol market is shrinking, and the country’s older demographic, alongside declining birth rates, is a significant factor behind it.
Recent figures from the tax agency show that people consumed less alcohol in 2020 than in 1995, with numbers plummeting from 100 litres (22 gallons) per week to 75 litres (16 gallons).
Tax revenue from alcohol taxes has also declined over the years. According to The Japan Times newspaper, it accounted for 5% of total revenue in 1980, but by 2020, it had decreased to just 1.7%.
The World Bank estimates that nearly a third (29%) of Japan’s population is aged 65 and older – the highest proportion in the world.
Concerns about the future of sake are not the only problem that poses a problem for Japan’s economy – there are worries about the supply of younger staff for certain types of jobs and care for the elderly in the future.
