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This paper attempts to understand the mechanism of an upward trend in wine consumption in Japan by analysing its trend and possible correlations with food-related consumptions. Through the panel and time-series analyses of wine consumption and food-item expenditures, and of wine consumption and food-service industry sales, we investigate whether wine consumption is correlated with food westernization in Japan and whether wine is gaining its steady place in daily life of Japanese. Although not robust, we find supportive evidences for both, particularly for the second one. While on-premise consumption, in particular at reasonably priced diners, is estimated to be an important factor for growing wine consumption in Japan, there are possible evidences that home consumption of wine is increasing. It is also suggested that reasonably price wine, especially that of imported wine, are likely to be the key for future wine consumption in Japan.


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