Sake imports soar in Australia amid decline in Japanese domestic market

Australia Broadcast Center

25-04-2025

Over the last decade, Australia has emerged as one of the most promising international markets for Japanese sake.
This trend has been fuelled by cultural curiosity, international travel, and a deepening appreciation of craft beverages.
Industry insiders say the surge in demand has transformed the local market and could soon position Australia among the top importers of the iconic Japanese drink.
Australians are visiting Japan in record numbers, and they're returning with more than just memories.
They're bringing home a taste for sake.
Last year,
Sydney based sake importer from Japan, Yoshi Honda, said the tourism-fuelled demand has translated into booming imports.
He began importing sake to Australia over a decade ago and has noticed significant market growth.
Yoshi Honda is a Japanese sake importer based in Sydney.
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ABC Asia: Sophie Johnson
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"[The number of customers] has grown more than three times [since I started importing] … maybe five times the size," he said.
What started as Mr Honda working with two Japanese sake brewers has grown to a network of about 16, and importing different varieties of the drink.
Japanese sake brewer Kenji Iwa has also noticed a major uptick in Australian consumers.
"I think that Australia has the most interest in Japanese sake at the moment,"
he said.
It is the eighth biggest exporter for Japanese sake, and at this rate, Mr Iwa said he can see the country potentially cracking a top five spot in the future.
In 2024, Australia imported 677,962 litres of sake,
More Australians are consuming Japanese sake.
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ABC Asia: Sophie Johnson
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Declining Japanese market
Ironically, while sake is booming in Australia and other Western markets, it's struggling to maintain popularity in Japan.
Both Mr Iwa and Mr Honda say younger Japanese drinkers are increasingly turning to beer, wine, and whiskey.
"Not many people in Japan are drinking Japanese sake at the moment," said Mr Iwa.
"Young people are not really drinking Japanese sake … they think it's something their parents drank."
Kenji Iwa brews sake, and says less people in Japan are consuming the product.
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ABC Asia: Sophie Johnson
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Mr Honda said many young people in Japan are following American and European cultural trends, resulting in less interest in sake.
That global interest is keeping the sake industry alive, and for some brewers, it's becoming the primary focus.
Mr Iwa said there's not much of a market for the beverage in Japan.
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We have to export as much as possible. And at the same time, we can export our culture.
"
Australian sake and festivals
Another key factor in sake's growing popularity is a wave of cultural festivals and events.
Melbourne and Sydney have both hosted major sake festivals in recent years, drawing thousands of attendees and dozens of breweries from Japan.
Photo shows
Two cups of sake about to cheers.
Despite its household name, sake has long been misunderstood.
This year, a sake festival debuted in Brisbane as well.
But sake's rising profile in Australia isn't just about imports.
Local brewers are getting in on the action too.
Quentin Hanley is the owner of Melbourne Sake, Australia's first craft sake brewery.
His craft operation uses local rice from New South Wales and combines traditional Japanese methods.
"We started home brewing. It kind of snowballed out of control, and here we are," he said.
Mr Hanley said he isn't trying to compete with Japanese sake.
Quentin Hanley brews sake in Australia.
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ABC Asia: Sophie Johnson
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Instead, he's working to raise the drink's overall profile, and he says it's working.
"If people drink more sake, whether it's ours or from Japan, that's a win for the whole industry," he said.
"We saw high-end restaurants doing sake and wine pairings, and that told us there was real interest."
He said the food culture, especially in Melbourne and Sydney, is driving domestic demand.
"Every time I mention sake, someone says, 'Oh, I love that stuff', even people you wouldn't expect," Mr Hanley said.
"Everyone seems to be interested."