The Struggles of Sake Breweries Amidst a Global Demand Boom

Sightseers from Hong Kong recently visited Kyoto's Fushimi Ward to indulge in Japanese sake, coinciding with a rising international demand for rice wine. However, the burgeoning popularity of sake comes at a time when rice prices are soaring, placing strain on sake breweries that struggle to find the right types of rice needed for brewing.

Breweries are grappling with a predicament as farmers choose to cultivate staple rice varieties over sake rice due to the significant price differences. This shift threatens the supply of sake rice as farmers adapt their crop selections to maximize profitability. As a consequence, sake producers are contemplating the possibility of reducing or pausing production during the upcoming 2025 harvest season due to difficulties in sourcing sufficient sake rice.

An official from the sake rice promotion association in Hyogo Prefecture highlighted the dire situation facing sake rice farmers and called for pricing equity between consuming rice and brewing rice. The region is known for producing Yamada Nishiki, the preferred rice variety for sake in western Japan, which is known to be more challenging to cultivate and has historically commanded higher prices compared to other rice types. Recent price trends have indicated a troubling shift, with staple rice prices overtaking those of sake rice due to supply shortages.

The agriculture ministry reported that the price of staple rice reached unprecedented levels in early 2025, surpassing the average prices of top-quality sake rice varieties like Yamada Nishiki. As the situation worsens, industry representatives express concern that the complexities surrounding rice procurement could hinder production expansion for many breweries, particularly those seeking to increase their market presence internationally.

Kizakura Co., a prominent sake brewer in Kyoto, has voiced anxieties regarding their ability to secure adequate ingredients as more farms pivot towards staple rice production. Statistics anticipate a slight increase in the market demand for sake rice, but the financial burden of rising ingredient costs might lead to reduced consumer purchases, which could threaten the industry’s growth.

Leading breweries are actively seeking support, with some local governments, such as Ehime and Yamagata Prefectures, allocating funds to subsidize the rising costs of sake rice as a way to sustain the sector. Officials emphasize the need for ongoing support for both farmers and producers to ensure that the tradition of sake brewing can continue flourishing amid these challenges.