STiR coffee and tea magazine

30 STiR coffee and tea | 2024 Issue 6 (December / January 2025) C By Eugene Gerden Japanese Coffee Sector Sees Third Wave of Development offee currently enjoys a high demand in Japan, which is the fifth- strongest coffee importer in the world, after the US and several EU countries. A growing passion for specialty coffee among Japanese consumers is driving a new wave of development in the Japanese coffee sector. Three Distinct Waves of Development Coffee was introduced to Japan in the late 19th century. The first wave of the Japanese coffee market developed slowly from then until the 1960s. During that time instant coffee and other products were mass-produced cheaply for the general public. The second wave emerged in the 1960s and lasted until around 2019. At this time, Seattle-style coffee brands such as Starbucks appeared as part of a movement to provide higher-quality coffee to Japanese customers. Since the beginning of the 2020s, the country has been experiencing a sharp growth in demand for specialty coffee, as local consumers are increasingly attracted to its unique aroma and flavors Growth Sectors in Japanese Coffee According to Yozo Otsuki, the founder of Kurasu, a modern coffee company based in Kyoto, in general, the Japanese coffee sector is experiencing steady growth these days, with significant activity in both major cities and regional areas. He comments, "Metropolis cities like Tokyo, Kyoto, and Fukuoka benefit from increasing inbound tourism, which plays a key role in boosting the cof- fee business. Japan's coffee culture is diverse, blending both old-school Kis- aten (traditional coffee shops) with Neldrip brewing methods, and modern specialty coffee shops that represent the third wave movement. This variety appeals to a wide audience. On one hand, there are customers seeking high- quality daily coffee from specialty shops, and on the other, those drawn to the nostalgia and cultural experience of traditional coffee spots. Additionally, within the specialty coffee space, higher-end offerings such as competition lot coffees are becoming more common. There's growing demand for premium experiences, with shops offering pour-overs priced at several thou- sand yen, which demonstrates higher price elastic- ity among consumers." According to Otsuki, another important driver of growth is the coffee equipment market. Japan has always had a strong filter coffee culture, but now both domestic and international players are pushing innovation in coffee equipment. Kurasu is one of those which has driven this movement, with imports and exports of coffee equipment and a presence in Australia, Singapore, and Bangkok. Otsuki continues, "Companies are investing heavily in R&D to create new drippers, machines, grinders, and other tools. I believe the demand for Japanese coffee will continue to grow, both domes- tically and internationally. The government's efforts to promote travel and tourism are bringing more people into Japan, which boosts coffee consump- tion. Additionally, there's increasing connectivity with overseas producers and a rising influx of cof- fee equipment, both of which are contributing to a new wave of interest in different coffee styles." According to analysts, while traditionally, Ja- pan has been a dark roast, filter-based coffee cul- ture, at present there are more light roasts, spe- cialty coffee, and espresso being embraced by both coffee shops and consumers at home. These newer trends are spurring change in the domestic market and fueling demand for a broader range of coffee experiences. Challenges and Opportunities Yuma Kawano, a well-known Japanese coffee ex- pert and the representative of the Japanese coffee company Light Up Coffee, also believes in the good prospects of the specialty coffee segment. However, he warns that existing challenges may limit the more active growth of the market in years to come. Japanese coffee expert and Light Up Coffee Company representative Yuma Kawano holds popular online tastings where participants from around the world can join and learn more about Japanese specialty coffee. Photo courtesy Light Up Coffee Tokyo based Onibus Coffee is opening more stores in smaller cities around the country to serve Japan's growing demand for specialty coffee. Photo courtesy Onibus Coffee

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