Japanese beverage giant Asahi Group is accelerating its move into the health and wellness sector, with plans to develop functional drinks and globally expand its proprietary lactic acid bacteria ingredients. This strategic shift is based on the company’s long-term analysis of megatrends anticipated through 2050, which highlight growing consumer demand for alcohol alternatives and health-oriented products.
Announced in its 2025 Integrated Report released on May 30, Asahi identified health and wellness as one of its four key domains for future research and development, alongside its core alcoholic beverage business, sustainability, and new business ventures.
The company’s latest financial results underscore the shifting landscape. In its Q1 fiscal year 2025 earnings, reported on May 12, Asahi posted a 2.6% increase in group revenue and a 4.8% rise in operating profit. This growth was partially attributed to a surge in demand ahead of price revisions in the Japanese alcohol market. However, Asahi emphasized in its integrated report that relying on premiumisation alone would not be sufficient to sustain long-term growth.
“To capitalise on these long-term trends and sustain our growth, we have established the premiumisation of our entire business portfolio as a core strategy,” the company stated. “With that said, premiumisation alone is not enough to respond to megatrends such as increasing health consciousness and the shifting attitudes toward alcohol.”
Asahi is already investing heavily in its health and wellness operations. The company has conducted research into functional lactic acid bacteria, including its proprietary postbiotic Lactobacillus gasseri CP2305, which has shown promise in alleviating stress and menopausal symptoms. Additional clinical studies have explored the potential benefits of yeast mannan for improving bowel habits and sleep quality.
From 2025 through 2027, Asahi plans to expand globally with these functional ingredients, while also promoting local health supplement brands such as Dear Natura, currently sold in Japan. In February, Asahi Group Foods signed a supply agreement with ADM Wild Valencia for the international distribution of CP2305.
“We understand the need to establish new products and services leveraging our proprietary yeast and lactic acid bacteria technologies as a core source of earnings,” the company said.
Asahi’s pivot is part of a broader trend among Japanese brewers diversifying into the nutraceutical space. Competitors Kirin and Suntory have also ventured into this sector. Kirin notably acquired Australian nutraceutical leader Blackmores in 2023 and Japanese skincare and nutricosmetics firm FANCL in 2024. Suntory is recognized for its Brand’s Essence of Chicken products in Southeast Asia and Taiwan, and recently launched its first meal replacement product in Thailand, accompanied by clinical research.
Beyond health supplements, Asahi is also leveraging its production capabilities to explore “beer-adjacent” categories, including non-alcoholic adult beverages and low-alcohol beers—a movement gaining traction among global brewers.
“Major beer manufacturers across the globe are moving forward with the development of non-alcohol adult beverages and low-alcohol beers,” Asahi noted. The company sees its dual expertise in alcohol and non-alcohol beverages as a key differentiator, enabling it to anticipate market trends and respond to increasingly diversified consumer preferences.
Emerging trends such as relaxation drinks and low-calorie functional beverages are already popular in the US and UK, and Asahi aims to tap into these markets. The company plans to develop new premium adult soft drinks that deliver functional benefits, supported by its research and development capabilities.
By expanding beyond its traditional alcoholic beverage roots, Asahi is positioning itself to meet evolving consumer expectations and secure long-term growth in a rapidly changing global market.
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