Japan cuts beer tax as major brewers refresh their flagship beers

On 1 October 2026, a revision of Japan’s liquor tax took effect, changing the tax rates on beer-type drinks. Compared per 350-millilitre can, beer is taxed about 9 yen less. Happoshu (a beer-style drink made with a reduced proportion of malt) and the so-called “third beer” (drinks that have kept their tax even lower by using ingredients other than malt or by blending in another type of alcohol) now face a tax increase of about 7 yen. According to Chunichi Shimbun, shelves of the cheaper beer have become livelier. Not only the brewers but also retail and restaurant companies are putting more effort into sales to capture the demand.

The tax gap narrows and product categories change

In Japan’s beer market, low-tax happoshu and third beers have for many years accounted for a large share as budget-friendly options for households. As this reform removes the tax advantage of third beers, the major brewers are changing the specifications of products they had sold as third beers into low-priced beer. It can be seen as a move to shift the tax-law classification to “beer” while keeping the price affordable.

Kirin rethinks the taste of its signature product

Kirin Brewery held a launch event in Tokyo on 1 October, the day the reform took effect, putting its flagship brand Kirin Ichiban Shibori front and centre. It says it has revised the hop blend to make the drink more refreshing on the palate. The strategy is to polish the signature product itself and promote it at a time when the tax cut gives a tailwind on price.

Will there be a “return to beer”?

Consumption of beer-type drinks in Japan has kept falling since peaking in 1994. With consumer tastes diversifying, attention is on whether the price cut will bring people back to beer. In a Japan where overall alcohol consumption is shrinking, how tax policy shifts drinkers’ choices is something to watch closely, including for other drinks such as sake.

If you would like to enjoy this story in Europe, try tasting several Japanese lagers side by side, whichever you can find. Japanese beer is often found in Asian grocery shops and Japanese restaurants. However, recipes refreshed in Japan will not necessarily be reflected straight away in export versions or in beers produced in Europe. Checking the country of manufacture on the label will make the differences easier to spot. Also try how the light bitterness and strong carbonation pair with salty dishes such as yakitori, tempura and edamame. It will give you a sense of what people in Japan are choosing to drink today.