Japan's home coffee market is seeing a shift towards ground coffee and beans, even as the overall market shrinks. A study by Tokyo-based Intage Inc. analyzed data from approximately 6,000 retail stores, revealing that sales of home-brewed coffee have increased, while instant and canned coffee sales have declined. In 2023, the total sales of household coffee products were 629.7 billion yen (about $4 billion), showing a 1.8% drop from 2017. This decline is largely attributed to a 4% decrease in canned and bottled coffee sales, now at 483.1 billion yen ($3.08 billion), and a 9.6% drop in instant coffee sales, which stand at 75.6 billion yen ($482 million). Conversely, sales of ground coffee and beans have risen by 26.3% since 2017, reaching 64.7 billion yen (around $412 million). Analyst Toshimitsu Kiji explains that rising prices have led consumers to favor higher-quality home-brewing options. Additionally, the number of coffee shops in Japan has decreased significantly, with only 58,669 shops in 2021, down from a peak of 154,630 in 1981. Internationally, Japan ranks fourth in coffee consumption volume, behind the E.U., the U.S., and Brazil.
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