Determinants of Japanese sake exports to overseas markets: applying the gravity model

Sake is a Japanese rice wine that is produced by fermenting high quality rice into an alcoholic beverage. The purpose of this study is to empirically examine the key factors affecting Japanese sake exports using the gravity model approach. Today Japan's sake industry is in decline, with consumption less than a quarter of what they were in the 1970s. But over the recent decades, Japanese sake has gradually become more well-known overseas, and exports are increasing rapidly. The remarkable growth in global sake consumption is thought to be mainly due to the surge in popularity of Japanese food around the world, and it presents an opportunity for the Japanese sake industry. This study develops a theoretical model for empirical analysis in order to determine which factors are most relevant for Japanese breweries aiming to export sake to foreign markets. The impact of COVID-19 on sake exports is specifically analyzed in this model.