STiR coffee and tea magazine

STiR coffee and tea 31 Kawan says, "The specialty coffee trend has come to Japan, and over the past 10 years or so the number of shops where you can enjoy delicious coffee has increased. On the other hand, the cost of coffee is rising now due to the ever-growing purchase price of raw coffee beans, the effects of the Russian-Ukrainian war and weak yen." According to him, due to increasing costs, coffee shops across the board have been gradually raising prices, and that in order to stay competitive it is becoming important to be "creative, such as finding new purchasing routes, developing purchasing methods such as bulk buying, and absorbing the increase in costs by streamlining operations." As the coffee sector of major Japanese cities has already achieved a high level of maturity, Kawan and other interviewed analysts expect more active growth in demand for coffee in rural areas of the country, that will contribute to the opening of new cof- fee shops and houses. "In this situation," he adds, "I think we will see more shops opening in regional areas. There are a lot of shops opening in various places in Tokyo, but I think people will drink more if there are more and more delicious coffee shops in regional cities. For example, a well-known Japanese coffee company Onibus Coffee opened a store in Nasu and Fuglen opened in Fukuoka. I think that with more Tokyo-based shops setting up bases in other regions, and more shops opening in other regions, the local coffee scene will become more exciting." Overseas Opportunities Inspired by the international success of % Arabica, which has stores in over 25 countries, some Japanese coffee companies are considering accelerating their overseas development. An example is Otsuki's Kurasu, which has tapped into and supported the interna- tional appreciation for Japanese coffee culture with its pour-over methods and slow- brew style. He says, "While there aren't many players actively pushing for international growth at this stage, the potential is significant, particularly as people abroad become more interested in Japanese coffee's unique offerings. There's an opportunity for growth, especially if more Japanese coffee companies expand their presence globally." Domestic Consumption Trends According to local coffee producers and analysts of the Japanese Coffee Association, coffee remains extremely popular among young people in Japan thanks to its diversity. There's a wide range of options that cater to different preferences and lifestyles, from convenience store coffee and canned coffee to chain shops like Starbucks and Doutor, including a growing number of specialty coffee shops. Canned coffee is a product unique to Japan, supported by the remarkable number of vending machines in stores and railway stations throughout the country. According to analysts, this diversity speaks to the demand and continued growth of coffee culture in Japan. Younger generations, in particular, are shifting away from more traditional options like dark roast canned coffee though. They are becoming more aware of sustainability and are increasingly focused on the quality and story behind the coffee they consume. As a result, they gravitate toward specialty coffee, independent coffee shops, and pour- over or espresso-based drinks, rather than the big-box chains or canned coffee options that were more popular in the past. International brands like Blue Bottle are swarmed in the trendiest parts of cities, such as Shibuya and Shinjuku. Fuglen's new coffee shop in Fukuoka represents the spread of specialty coffee from Tokyo to other regions across the country. Photo courtesy FUGLEN Coffee According to Japanbite there are over 5.5 million vending machines across Japan. Their convenience, consistency, affordability and variety has made the vending machine an iconic part of Japanese food and bev- erage culture. Kurasu coffee has been a key player in the coffee equipment market, by importing new equipment, innovating machines, and exporting more advanced equipment to Australia and other countries. Photo courtesy Kurasu There is also a trend in home brew- ing, especially after Covid, as more young people are investing in equipment to brew high-quality coffee at home, which shows a growing appreciation for the craft of coffee. This shift toward premium coffee experiences, whether at home or in inde- pendent shops, suggests that the demand for higher-quality, specialty coffee will continue to rise among younger consum- ers in Japan. All this points to future growth, from the current per capita coffee consump- tion at 580 cups a year (according to the All Japan Coffee Association) and em- phasizing unique methods of preparation which bridge generations.

• Cover