South Korea Alcoholic Beverages Market Share, Size, Growth: By Packaging Type: Beer, Traditional Spirits, Whiskey, White Spirits, Wine, Rum, Tequila and Mescal, Liqueurs, Brandy and Cognac; By End Use: Pub, Bars, and Restaurants, Retail; By Distribution Channel: Hypermarkets and Supermarkets, Others; Competitive Landscape; 2024-2032

South Korea Alcoholic Beverages Market Size

The South Korea alcoholic beverages market reached a value of approximately USD 26.42  billion in 2023. The market is projected to grow at a CAGR of 4.8 % between 2024 and 2032, reaching a value of around USD 40.31  billion by 2032.

South Korea Alcoholic Beverages Market Outlook

• The functional food and  beverages experienced a growth of a CAGR of 1.9% between 2018 and 2022.

• In 2022, soft drinks accounted for 84% of the FF beverages market, totalling USD 498.4 million.

• According to NZTE, between 2017 and 2021, South Korea's food and beverages sector experienced steady growth, with a CAGR of 4%.

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South Korea Alcoholic Beverages Market Growth

The demand for alcoholic beverages in South Korea is propelled by the increase in the production of flavoured and functional beverages, ready-to-drink options, and beverages made with alternative ingredients such as plant-based milk substitutes. Manufacturers are developing single-serve and portable packaging formats, such as cans, pouches, and bottles, that are suitable for consumption anywhere, anytime.

Moreover, beverage companies use technology to improve product development, streamline manufacturing processes, and optimise distribution channels, further driving the demand for beverages. According to the Government of Canada, in 2022, South Korea's beer market ranked as the 10th largest globally, with beer sales totalling US$11.0 billion.

Key Trends and Developments

Rising demand for craft spirits, increase in health consciousness, surge in e-commerce and digital marketing, and shift in consumer preference are the major trends impacting the South Korea alcoholic beverages market growth.

May 16, 2024

Barrell Craft Spirits® (BCS) has announced the official launch of its award-winning spirits collection in South Korea. UOT has been chosen as the brand's distribution partner for both on- and off-trade sectors.

February 28, 2024

Chuu has officially introduced 'Chuu-HI' at South Korean alcohol retailers. The canned beverage, blending diluted soju, carbonated water, and fruit juice, appealed to fans and consumers seeking fruity alcoholic options.

February 27, 2024

Lotte Duty-Free, a Korean travel retailer, has launched an online liquor 'exhibition' highlighting popular brands, including a dedicated whiskey showcase. Shoppers can enjoy discounts of up to 55% during the spring season.

December, 2023

The Ministry of Economy and Finance introduced legislative proposals to apply a standard sales ratio to domestically made alcoholic drinks, aiming to reduce the price difference with imported liquors.

Rising demand for craft spirits

Craft spirits such as whiskey, gin, and vodka are increasingly favoured for their distinct tastes, limited production runs, and commitment to premium ingredients, catering to seekers of genuine drinking experience.

Increase in health consciousness among consumers

Although alcoholic beverages remain popular, South Korean consumers are becoming more health conscious. This has increased the desire for low-alcohol or alcohol-free options and drinks containing natural ingredients and functional benefits.

Surge in e-commerce and digital marketing

E-commerce platforms provide convenience and access to diverse products. In contrast, digital marketing initiatives, collaborations with influencers, and social media campaigns enable brands to connect with consumers and boost alcoholic beverage sales.

Consumer preference shift

South Korean consumers, especially the younger generation, are more open to exploring a variety of alcoholic drinks beyond traditional choices like soju and beer. This trend boosts demand for premium and imported liquors.

South Korea Alcoholic Beverages Market Trends

The alcoholic beverages industry is being propelled by the willingness of consumers to invest in superior-quality and premium beverages, which provide distinctive flavour profiles and craftsmanship. Moreover, government policies that encourage competition, innovation, and responsible consumption can boost market growth and attract investment in the industry.

There is a growing emphasis among South Korean consumers on sustainability and ethical standards within the beverage industry. This entails a desire for eco-friendly packaging, responsibly sourced ingredients, and a preference for brands that prioritise sustainability and social responsibility.

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South Korea Alcoholic Beverages Industry Segmentation

South Korea Alcoholic Beverages Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Packaging Type

• Beer
  • Bottle
  • Can
• Traditional Spirits
  • Shochu/soju
  • Maesilju
  • Others
• Whiskey

• White Spirits
  • Vodka
  • Gin
• Wine
  • Red Wine
  • White Wine
  • Sparkling Wine
• Rum

• Tequila and Mescal

• Liqueurs

• Brandy and Cognac

Market Breakup by End Use

• Pubs, Bars, and Restaurants

• Retail

Market Breakup by Distribution Channel

• Hypermarkets and Supermarkets

• Convenience Stores

• Speciality Stores

• Department Stores

• Others

South Korea Alcoholic Beverages Market Share

Wine contributes to the South Korea alcoholic beverages market growth as wine is progressively intertwining with South Korean social and dining customs, shaped by the emergence of wine-focused dining venues and wine festivals.

The demand for premium and high-quality wines is on the rise among South Korean consumers, who are willing to invest more for exceptional flavour and genuine quality. Moreover, wine is seen as a healthier option compared to other alcoholic drinks because of its lower alcohol content and potential health advantages, like the presence of antioxidants in red wine.

Traditional spirits like soju and makgeolli possess deep cultural significance in South Korea. Despite their traditional origins, there have been advancements in both the production and marketing of traditional spirits to accommodate shifting consumer preferences.

Pubs, bars, and restaurants drive growth in the South Korea alcoholic beverages market share by offering a diverse range of alcoholic beverages, including local and international beers, wines, spirits, and cocktails.

Numerous pubs, bars, and restaurants organise promotions, happy hours, and special events focused on alcoholic beverages. These activities draw in customers, boost foot traffic, and stimulate consumption, resulting in heightened sales and revenue.

Retail outlets offer convenience by providing one-stop shopping for alcoholic beverages along with other grocery and household items. Moreover, retailers seize the premiumization trend by providing a carefully curated array of upscale and speciality alcoholic beverages, catering to consumers seeking quality, craftsmanship, and distinctive drinking encounters.

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Leading Manufacturers in the South Korea Alcoholic Beverages Market

The beverage companies produce and offer various beverages including vodka, rum, beer, wine, liqueurs, and others of different brands.

Diageo Plc: Founded in 1997 and is a North America-based company. The company offers various brand products including scotch whiskey, vodka, tequila, gin, rum, beer, wine, liqueurs, and no and low alcohol.

Lotte Chilsung Beverage Co., Ltd: Established in 1950 and is headquartered in Seoul, South Korea. The company offers beverages and liquor products under various brands including Chilsung Cider, Pepsi-Cola, Del Monte, Milkis, and others.

Casillero del Diablo: Founded in 2009 and epitomizes the excellence of the Chilean wine sector, consistently delivering quality since its inception. The wine brands offered by the company include Reserva, Red Blend, Devil’s Carnaval, and others.

Pernod Richard S.A.: Established in 1975 and is a Paris, Ile-de-France-based company. The company is the world's premier provider of high-quality spirits, distributing favourite beverage brands to over 160 countries.

Other South Korea alcoholic beverages market key players are Anheuser-Busch InBev NV, HiteJinro Co., Ltd, Heineken NV, Oriental Brewery Co., Anheuser-Busch InBev SA/NV, Carlsberg A/S, Jeju Beer Co., Ltd., Beam Suntory Inc, Muhak Co Ltd, Molson Coors Beverage Company, and Asahi Group Holdings Ltd, among others.

Key Highlights of the Report

South Korea Alcoholic Beverages Market Report Snapshots

South Korea Alcoholic Beverages Market Size

South Korea Alcoholic Beverages Market Growth

South Korea Alcoholic Beverages Market Trends

South Korea Alcoholic Beverages Market Share

South Korea Alcoholic Beverages Manufacturers

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.