Japan’s Tax Administration opened a competition to gather business ideas aimed at reviving the spirits sector and addressing a decline in alcohol consumption and tax revenue observed during the pandemic.
The campaign is titled “For the love of life!”, a bilingual pun that blends a Japanese term with the Spanish name for alcoholic beverages. It invites proposals that support the spirits industry while tackling related challenges, as described on the agency’s website.
The goal is to raise public awareness about the struggling spirits market. Officials note that fewer consumers emerged during the pandemic and birthrates have remained low, contributing to this slowdown.
The agency also supports Japan’s national alcohol industry by promoting exports of products such as sake, a rice wine deeply rooted in Japanese culture and tradition, according to the same source.
A spokesperson stated that the Tax Office does not advocate excessive drinking and that it also aims to educate younger audiences about moderate consumption.
Alcohol tax collection in Japan fell by 110 billion yen in fiscal 2020, dropping to 1.13 trillion yen, a decline reported as the largest in 31 years by the Tax Office.
Average expenditure on alcohol in bars and restaurants per capita in 2020 was about 9,000 yen (roughly 65 euros), less than half of the amount recorded the previous year, according to the Interior Ministry.
Meanwhile, average household spending on alcoholic beverages rose from 41,000 yen (about 298 euros) in 2019 to 46,000 yen (around 334 euros) in 2020.
Official figures also show a notable drop in sales of alcoholic products for Japanese firms in the sector, contrasting with a continued rise in categories like beer, cocktails, and other beverages believed to offer energizing or health-related benefits.
The shift is linked to anti-contagion measures enacted during the pandemic in several Asian countries, including advisories for remaining at home except for essential activities and restrictions on business hours or temporary closures for bars and restaurants, though Japan did not impose a nationwide curfew.
The Tax Administration invites submissions proposing new services and methods to promote alcohol consumption among adults, including ideas for products aligned with evolving lifestyles and innovative delivery methods based on technologies such as artificial intelligence or the metaverse.
Submission windows run from early July through September 9, with finalists’ plans to be presented in November.