Japan’s youth choose sobriety amid efforts to boost alcohol tax revenue
Japan's decline in alcohol consumption among its youth, particularly Gen Z-ers has raised concerns. Unlike many countries where youth drinking is discouraged, Japan's government is actively trying to reverse this trend.
Traditionally, alcohol in Japan has been integral to social interactions, a practice known as "nommunication"—a combination of the Japanese word for drink, "nomu," and communication. Drinking has historically facilitated a relaxed environment, often leading businesses to tackle difficult issues in pubs rather than in conference rooms.
The country's tax authorities say that this decline is affecting alcohol tax revenue projections. In response, the government has organised elaborate events to encourage Gen Z to consume more alcoholic beverages.
These efforts are critical for tax revenue and the survival of companies producing these beverages. To counteract the largest liquor tax revenue decrease in thirty-one years, the National Tax Agency (NTA) launched a contest in July 2022, inviting people aged 20 to 39 (20 is the legal drinking age in Japan) to develop business plans to increase alcohol demand among young people. The NTA cited the COVID-19 pandemic, an ageing population, and lower fertility rates as reasons for lower alcohol sales.
However, not everyone supports this state-sponsored campaign. Japanese economist Hidetomi Tanaka called it an "irresponsible and unorthodox drinking campaign" in The New York Times, and many Twitter users criticised the launch.
Why are young Japanese staying away from alcohol?
Not long ago, alcoholism was a problem in Japan. Research from the Institute for Health Metrics and Evaluation (IHME) revealed that, in 2020, 73% of Japanese men aged 15 to 39 consumed harmful amounts of alcohol, compared to 39% globally. For women, 62% in Japan consumed harmful amounts, versus just 13% globally.
Now, a new generation is choosing sobriety. Studies from the UK, the US, and Australia indicate that Gen Z is more sober than previous generations. Post-COVID-19, young people in Japan have resisted the pressures of the country’s prevalent business drinking culture. Attitudes have shifted towards drinks with lower alcohol content, with an increase in sales of alcohol-free beer, according to beer industry executives, and the opening of the country's first non-alcoholic bar.
