Is the Japanese Energy Drink Market Slowing Down or Doubling?

Posted on December 14, 2018 | Last updated February 11, 2025

Is the Japanese Energy Drink Market Slowing Down or Doubling?
The Energy Drink Boom of 2014 was a time when the Japanese energy drink market surged dramatically, with numerous follow-up products capitalizing on the trend.

Four years have passed since then, and in 2018, there were many news articles about the energy drink market, so I thought I would keep a record of them here.

Author information Author: Energy Drink-kun

In 2001, while living in the United States, I encountered energy drinks through the dance scene and was deeply impressed. After returning to Japan, I found that energy drinks were considered novelty beverages, so I established a comprehensive website in 2013 to share the true appeal of energy drinks. As an energy drink enthusiast, I began drinking them seriously again, collecting over 7,000 varieties of energy drinks from various countries. I am also active as a critic and expert, receiving media interviews.

Energy Drink Market Size Reaches 40 Billion Yen! A Hot Topic

According to the Fuji Keizai Group FK Communications on July 25, 2013 (around the time Starbucks Refreshers was released),

In 2011, the market exceeded 10 billion yen, and in 2012, Coca-Cola introduced "Burn" and Asahi Beverages launched "Monster Energy." The market in 2012 was 2.2 times larger than the previous year.
Source: Energy Drinks and High-End Ice Creams: How They Help Us Endure the Heat?

The forecast from Fuji Keizai suggested that the market size would reach 40 billion yen in 2013 and potentially approach 50 billion yen in 2014. With so many follow-up products being released, it seemed like the market would keep growing, but in reality, only Red Bull and Monster remained strong while other brands failed to gain traction, with many products being sold off at discounted prices. As of 2018, Red Bull and Monster still dominate the market.

Which Market Size Data from 2018 Should We Trust...

May 2018: One Survey Shows Energy Drink Market Growth Slowing

According to a J-marketing survey in May 2018,

The energy drink market expanded roughly 34 times over the past 10 years, but recent growth is believed to have slowed down. In Japan, Suntory launched "Mountain Dew Kickstart" in April 2018 as a vending machine-exclusive product, indicating some new market entries. The focus is on whether new brands can acquire new users and contribute to further market expansion in a market already dominated by top brands.
Source: Energy Drinks (May 2018 Edition)

This survey indicates that the energy drink market's growth slowed in 2018.

It's quite common for new products to disappear within a year in Japan's energy drink scene, but Kickstart was discontinued just six months after launch, marking possibly the quickest exit in Japan's energy drink history, which was quite surprising.

During the energy drink boom of 2014, I felt like new products didn't significantly expand the market or secure a solid share. It seemed like only Red Bull and Monster's sales were growing rapidly. I wonder how many products from that era still remain... (；´∀｀)

May 2018: Another Survey Shows the Market Size Doubled from the Previous Year... What!?

According to a survey by the Asahi Shimbun on May 7, 2018,

In the fiscal year 2017, the market for energy drinks reached 81.4 billion yen, doubling from the previous year, although the market for nutritional drinks decreased by 20% to 172.3 billion yen from 2007.
Source: Nutritional Drinks, Overseas Entry Revives the Market

Doubling!? 81.4 billion yen!? When did it grow this much!? It's a surprisingly high number, but... another survey from the same month states that the market is slowing down.

Which one is correct!?

December 2018: Health Industry News Reports the Market Size Is Less Than 40 Billion Yen?

According to Health Industry News on December 14, 2018,

Domestic brands are rising rapidly, and the competition for market share is heating up. Companies like Matsumoto Kiyoshi, Phiten, Don Quijote, South Alps PEAKER Bitter Energy, and Real Gold Rocket Start are entering the market. According to Takuya Ishida from Antelio Consumer Healthcare, "The drink market decreased from 114.7 billion yen in 2008 to 90.5 billion yen last year, while the energy drink market grew rapidly from 3 billion yen in 2008 to 39.4 billion yen last year."
Source: Energy Drink Surge, Market Size Approaching 40 Billion Yen

Less than 40 billion!? This is about 600 billion less than the 1.7 trillion yen for nutritional drinks reported by Integ, but...

Did the market size really grow from 40 billion yen to 80 billion yen as reported by Asahi Shimbun, or is the growth slowing down as J-marketing reports? Or is it rapidly expanding toward 40 billion yen, as Antelio's report suggests? I'm completely confused by the conflicting information Σ(´∀｀；)

It seems like the market competition isn't particularly intense, so perhaps the information from 2013 and 2014 is being reused with new product names for 2018... Predictions about market share competition from domestic brands were common back then, but in reality, most products were discontinued and withdrawn a year later.

No Change in Dominance: Red Bull and Monster Remain the Two Giants

Is the Japanese Energy Drink Market Slowing Down or Doubling?
In the energy drink boom of 2014, even major manufacturers were unable to establish brands and repeatedly held clearance sales after just one year.

New products with unclear branding and motivation for purchase (and higher prices than regular juices) find it difficult to overtake the dominant market share held by the two giants who have built solid brands and established popularity.

It's unclear whether Japan's energy drink market size is 40 billion or 80 billion, given the conflicting reports, but I feel like the domestic market expansion simply means more people are gradually buying Red Bull and Monster.

By the way... I found out that the market size for beer is around 2.3 trillion yen, sake is 440 billion yen, tea drinks are about 440 billion yen, and ice cream is about 500 billion yen.