Japan imports approximately 500,000 metric tons of malt annually, which accounts for nearly 90 percent of total demand. While overall beer consumption is declining, malt demand is expected to rebound from a down year in 2020 and steadily grow in subsequent years, reflecting strong demand for malt in craft beer and whiskey production. Over the first seven months of 2021 craft beer sales increased 180 percent over the same period last year. Craft brewers are looking for new and unique malts to differentiate their products in a growing market. An incremental change to the taxation of liquor products will also favor high content malt beverages. A recent change to the malt import requirements also provides more flexibility to importers.