The Japanese government plans to ease restrictions on domestic sake brewery licenses. Currently, officials only issue new licenses under exceptional circumstances, such as facility relocations. This change would mark a major shift in the Liquor Tax Law.
The proposal follows a surge in global demand for Japanese sake. Officials aim to broaden the base of skilled producers and businesses involved in sake production, a core part of Japan’s cultural identity.
A working group on national strategic zones will lead the effort. They will consult ministries, industry experts, and businesses. These talks will guide the path toward legal deregulation and the creation of a new sake licensing framework.
Currently, new entrants can only get licenses to brew sake for export. The 2020 revision of the law opened that limited path. However, producing sake for the domestic market remains tightly restricted.
Existing breweries often resist newcomers. Many fear that increasing competition could lower brand value and threaten quality control. At the same time, demand for sake inside Japan continues to drop.
In fiscal 2022, sake sales fell to around 400,000 kiloliters. That’s less than one-quarter of the 1975 level. The number of breweries has also declined sharply to about 1,500, down from over 3,000 at the industry’s peak.
Still, there are signs of change. UNESCO added Japan’s traditional sake-making skills using koji mold to its list of Intangible Cultural Heritage in December 2023. This recognition renewed interest in preserving and revitalizing the craft.
A senior official from the Japan Toji Guild Association noted that easing license rules may help the industry—if done carefully. “New entries must not harm existing sake producers,” the official said.
Government insiders also hope the move will help revive rural communities. Prime Minister Shigeru Ishiba strongly supports regional revitalization. A special zone for sake production could become one of his administration’s key policies.
Japan has already liberalized small-scale production of beer, wine, and doburoku in past reforms. Craft beer flourished after a 1994 legal revision. Similar programs supported wine and unfiltered sake production under structural reform zones launched during Prime Minister Junichiro Koizumi’s tenure.
Now, sake could be next. If approved, the new system may allow a fresh generation of brewers to carry forward Japan’s rich sake tradition—both at home and abroad.
