The revised Liquor Tax Act took effect, unifying the tax on beer products. The resulting trends in the beer market and 4 related stocks, including Kirin Holdings and Toyo Seikan Group Holdings, are discussed.
On 1 October 2026, the final phase of Japan’s liquor tax reform took effect, unifying the tax rates on beer, happoshu and third-category beer. The previous tax disparity was eliminated, and the tax burden on beer products is expected to be levelled out. The tax rate on canned chuhai was also raised.
From the late 1990s, the market expanded with the spread of happoshu and third-category beer, driven by demand for lower prices. Before the reform, there was a significant difference in tax per 350 ml can, and companies avoided the tax regime by adjusting malt content and changing ingredients. The elimination of the disparity has changed the competitive environment in the market.
Since the start of the reform in 2020, beer sales volume has increased by approximately 25%, and beer’s market share has recovered to more than 55%. Third-category beer’s share fell to approximately 25% in 2025. The shift in consumer preferences from lower prices toward quality continues.
The 4 stocks cited in connection with the liquor tax reform are Kirin Holdings, Asahi Group Holdings, Sapporo Breweries and Toyo Seikan Group Holdings. Their respective brand strategies and business initiatives are discussed.