Malt & Grain

How much malt must Japanese beer contain? Tax law provides the answer, and it has changed over time. For a long while, only beer with at least two-thirds malt qualified as "beer" (biiru). Since the 2018 amendment to the Liquor Tax Act, half is enough, and ingredients like rice, corn, starch, and sugar are permitted in limited amounts, along with fruit and spices.

Malt is kilned, germinated grain, usually barley. Japan grows very little brewing barley; Kirin, Asahi, and the other major companies import most of their malt from abroad. The rice in the mash isn't a foreign element—it belongs to the recipe of many lagers. It makes the beer lighter and drier.

On top of this comes a special tax workaround. Beer with less malt was called Happōshu, literally "foaming alcohol." It emerged in the 1990s because the tax on beer was high, making a lower malt content worthwhile. The industry pushed further and released drinks based on pea protein or soy protein, marketed as "third category" or "new genre." They taste beer-like but, under Japanese law, aren't beer at all.

Since October 1, 2026, this game is over. After three phases in 2020, 2023, and 2026, all beer-like drinks now carry the same tax rate: 54.25 yen per 350-milliliter can. Beer became 9.1 yen cheaper as a result, while Happōshu and third-category drinks became 7.26 yen more expensive.

For comparison: in Germany, Section 9 of the Provisional Beer Law allows only barley malt, hops, yeast, and water for bottom-fermented beer. Japan, instead of a short list, draws a long boundary: the law counts percentages, and the tax rate follows the math.