Is Japan’s Declining Trend in Alcohol Consumption a Threat or an Opportunity?

Abstract

Recent trends reveal that Japanese youth are choosing to abstain from alcohol. The trend, instigated in large part by the COVID-19 pandemic, has affected Japan’s tax revenue and liquor industry. To offset the disruption, the government recently launched a national campaign encouraging the youth to drink more, which is considered controversial for advocating a potentially unhealthy and addictive habit. By contrast, liquor businesses in Japan have chosen to capitalize on the new attitudes by supplying non-alcoholic alternatives for customers. This case study compares the two approaches to the disruption, highlighting why it is essential for the National Tax Agency to embrace, not resist, the shift in drinking culture and tradition.