Sake Imports Surge in Australia as Japanese Domestic Demand Declines

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Over the past decade, Australia has become one of the hottest international markets for Japanese sake, with demand soaring thanks to a mix of cultural curiosity, travel, and a growing appreciation for craft beverages.

Industry insiders are saying that the Aussie market has exploded, and Australia could soon become one of the top importers of this iconic Japanese drink. It’s all tied to the surge in Australians visiting Japan — nearly one million Australians went to Japan last year, a huge jump from 613,062 in 2023 — and many are returning with a new love for sake.

Yoshi Honda, a Sydney-based sake importer, has seen firsthand how much the market has grown. He started importing sake more than a decade ago, and says his customer base has expanded three to five times since then. What started with just two Japanese sake brewers has now blossomed into a network of about 16, offering a variety of sake to the local market.

Kenji Iwa, a sake brewer in Japan, has also noticed Australia’s increasing thirst for sake. While China and the U.S. are still the top markets for Japanese sake, Australia has quickly jumped to the eighth spot for imports — and Iwa predicts that could easily rise to the top five in the near future. In 2024, Australia imported nearly 678,000 litres of sake, which is almost three times the amount it brought in back in 2011.

Ironically, while sake is booming in Australia and other Western markets, it’s struggling in Japan. Younger Japanese drinkers are moving away from sake, preferring beer, wine, and whiskey instead. "Young people don’t really drink sake anymore," Iwa said. "They think it's something their parents drank."

That shift in Japan, however, has helped fuel global demand, keeping the sake industry alive. For some Japanese brewers, international markets like Australia are becoming the primary focus.

Sake’s growing popularity in Australia is also due to an increase in cultural festivals and events. Major sake festivals have been held in Melbourne and Sydney, drawing thousands of attendees and dozens of Japanese breweries. Brisbane even joined the party this year with its own sake festival.

And it’s not just about imports — local craft sake brewers are jumping in, too. Quentin Hanley, the owner of Melbourne Sake (Australia’s first craft sake brewery), is using local New South Wales rice and traditional Japanese methods to brew sake. While he isn’t trying to compete with Japan’s sake, he’s working to elevate the whole industry.

"We started home brewing, and it just kind of snowballed from there," Hanley said. "We’re not trying to compete with Japanese sake — we just want to raise the profile of sake in Australia, and it’s working." He’s seen more high-end restaurants doing sake and wine pairings, which he says shows there’s a real demand.

With Aussie food culture, particularly in Melbourne and Sydney, driving interest, sake is slowly becoming a staple at many gatherings. "Every time I mention sake, people are like, ‘Oh, I love that stuff!’ Even people you wouldn’t expect," Hanley said. "Everyone seems to be interested."

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