
Japanese Canned Coffee: The Key to Succeed in the…

In capturing the essence of Japan’s unique scenery, vending machines feel like a requirement. According to the Japan Vending Machine Manufacturers Association, the number of vending machines nationwide is said to be approximately 2.68 million.*
They offer colourful and unique drinks, all sold for less than 150 yen (a pound) each. There’s a wide array of items, including the occasional onion soup, but Japanese coffee cans reign as the most popular choice.
The market is flooded with options, from black American coffee to very sweet lattes, with major beverage manufacturers like Suntory and Kirin releasing a broad range of canned coffees and a plethora of seasonal limited-edition products each year.
*Source: https://www.customs.go.jp/tokyo/etu/ftp/toku0510.pdf

The Booming Ready-to-Drink Market: Strong Presence of Japanese Canned Coffee ‘Suntory Boss’
In fact, Japan’s ready-to-drink market, which includes canned and bottled coffee, is on the rise. Within the broader coffee market, Japan boasts a staggering 3 trillion-yen market, ranking as the second largest in the world.
There are predictions it will grow at a compound annual growth rate (CAGR) of 3.5% from 2024 to 2029. This compares to a CAGR of 2.55 % for the ready-to-drink coffee market in the UK**, and indeed the number of bottled and canned coffee brands available in UK supermarkets and kiosks is limited.
In Japan, the launch of Suntory’s coffee brand ‘Craft Boss’ in a PET bottle format has significantly boosted the bottled segment. Nonetheless, Japanese canned coffee retains a strong presence, especially when it comes to milk-based beverages requiring a certain milk solid content or when light protection is needed, making cans the preferred packaging.
**Source: https://www.mordorintelligence.com/industry-reports/united-kingdom-ready-to-drink-rtd-coffee-market
Japanese canned coffee brands, beloved across generations, are also well-known for their collaborations with popular IPs.
Lessons from Costa’s Success: Expanding Brand Recognition Through Canned Coffee in Japan
Leveraging the popularity of ready-to-drink beverages to elevate brand recognition, companies like Costa Coffee have found some success. Founded in the UK, Costa is a major coffee chain with 2700 stores in its homeland and over 1100 more across 41 European countries.
Though less known in Japan, in April 2021, Costa entered the Japanese bottled coffee market. They introduced a premium bean blend in a smaller sized 270ml bottle, priced at 170 yen including tax (approximately 90 pence), marking a strategic move towards a high-end pricing strategy. This shift offers a richer brand experience distinct from its image as a casual, low-cost chain in the UK, paving the way for success abroad.

According to Forbes Japan, the changes in coffee needs brought on by the COVID-19 pandemic appear to have supported Costa’s success in Japan.*** In post-pandemic Japan, there is a polarisation of consumer needs: the desire for convenient, ready-to-drink bottled coffee and the appreciation for savouring coffee more leisurely, including instant drip coffee. Costa has succeeded in Japan by developing a strategy that caters to both of these needs.
Costa’s parent company is Coca-Cola, and Coca-Cola Japan has the long-standing popular Japanese canned coffee brand “Georgia” in Japan. However, since Georgia targets people who want to drink coffee conveniently with a low cost in mind, it seems that the two brands coexist effectively.
***Source: https://forbesjapan.com/articles/detail/44221


Key to Beverage Business Success in Vending Machines and Convenience Stores
For companies aspiring to carve out a successful path in the Japanese beverage industry, grasping and leveraging the nuances of the ready-to-drink market is essential. It turns out that the entrance to the roadmap for success might just be found in the ubiquitous vending machines and convenience stores dotting every corner of Japan.
We, Tokyoesque, pride ourselves on our proven track record of providing marketing support to leading beverage brands. Why not begin with a deep dive into understanding the Japanese market, and brainstorm together a marketing approach that’s tailored to the local landscape? Let’s embark on this journey and unlock the potential of your brand in Japan.
Contact us for a 30 minute first consultation at no cost to discuss how we can help you reach your goals.