South Korea Alcoholic Beverages Market Outlook
According to a report by Expert Market Research (EMR), the South Korea alcoholic beverages market size was valued at USD 26.42 billion in 2024. With increasing consumer demand for diverse and premium alcoholic drinks, along with the rising popularity of craft and health-conscious beverages, the market is projected to grow at a robust CAGR of 4.8% from 2025 to 2034, reaching a value of USD 40.31 billion by 2034.
Alcoholic beverages hold a significant cultural and social position in South Korea, where drinking is a central part of social interactions, celebrations, and traditional rituals. The South Korean alcoholic beverage sector is multifaceted, comprising beer, soju, wine, and traditional liquors such as makgeolli. A growing preference for premium, craft, and international alcoholic beverages, as well as the increasing focus on low-alcohol and health-conscious options, are driving market growth. The ongoing trend of premiumisation and diversification of alcoholic offerings across various categories is expected to further fuel the market’s expansion.
Market Drivers Of Growth
The South Korea alcoholic beverages market is experiencing substantial growth, primarily due to evolving consumer preferences, changing demographics, and shifts in the drinking culture. A major factor contributing to this growth is the increasing demand for premium and craft products. South Korea has seen a surge in craft beer breweries, with local and international craft beers becoming increasingly popular among young and affluent consumers. The demand for artisanal, locally produced beverages reflects a broader trend of consumers seeking unique and high-quality products that align with their lifestyle choices.
In addition to premiumisation, health-consciousness among South Korean consumers is playing a pivotal role in shaping the alcoholic beverages market. With a growing awareness of health and wellness, consumers are increasingly seeking beverages with lower alcohol content or those made with natural, organic ingredients. This has led to the emergence of low-alcohol wines, beers, and spirits, as well as a shift towards lighter, refreshing alcoholic drinks. Brands are responding to this demand by introducing healthier alternatives that feature fewer calories, lower sugar content, and organic ingredients, catering to a broad spectrum of health-conscious consumers.
Another key driver is the globalization of alcoholic beverage preferences. South Korea’s young, cosmopolitan population is increasingly drawn to international brands and new types of alcoholic beverages, such as wine and cocktails. As a result, global spirits and wine manufacturers are expanding their presence in the South Korea alcoholic beverages market, bringing in a diverse array of products that appeal to consumers’ evolving tastes. The rise of international wine culture, particularly among millennials and affluent professionals, is also contributing to the increasing demand for wine in South Korea.
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South Korea Alcoholic Beverages Market Segmentation
The market can be divided based on type, end use, and distribution channel.
Market Breakup by 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
- Pub, Bars, and Restaurants
- Retail
Market Breakup by Distribution Channel
- Hypermarkets and Supermarkets
- Convenience Stores
- Speciality Stores
- Department Stores
- Others
Competitive Landscape
The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the South Korea alcoholic beverages market. Some of the major players explored in the report by Expert Market Research are as follows:
- Anheuser-Busch InBev NV
- HiteJinro Co., Ltd
- Heineken NV
- Oriental Brewery Co.
- Lotte Chilsung Beverage Co., Ltd
- Casillero del Diablo
- Anheuser-Busch InBev SA/NV
- Carlsberg A/S
- Jeju Beer Co., Ltd.
- Beam Suntory Inc
- Muhak Co Ltd
- Diageo Plc
- Molson Coors Beverage Company
- Pernod Richard S.A.
- Asahi Group Holdings Ltd
- Others
Premiumization and Innovation
Premiumization is a growing trend in South Korea alcoholic beverages market. Consumers are increasingly willing to pay more for products that offer superior quality, unique flavors, or exceptional packaging. This trend is particularly evident in the spirit sector, with high-end whiskey, vodka, and rum showing growth in terms of both sales and consumption. Foreign luxury alcohol brands, such as Scotch whiskeys and Cognac, have gained a strong following among affluent South Koreans, who view these products as both a symbol of status and a refined taste for quality.
This focus on premium offerings is also supported by the rise of innovative product launches, with beverage manufacturers increasingly experimenting with flavors, packaging designs, and product formats. For instance, limited-edition releases of soju and whiskey, as well as collaborations between local distilleries and international brands, are becoming more common. This innovation not only appeals to discerning consumers but also enhances the overall drinking experience, making it more dynamic and exciting.
Regulatory Environment and Market Challenges
Despite the optimistic growth outlook, the South Korea alcoholic beverages market faces several challenges. Strict regulatory frameworks governing alcohol advertising, distribution, and consumption can limit the ways in which companies market their products. For instance, South Korea has stringent laws regarding alcohol consumption among minors, which limits the scope of targeting younger consumers through certain marketing channels. Furthermore, the government’s tax policies on alcohol often result in high pricing for premium products, which can dampen demand, especially among price-sensitive customers.
The COVID-19 pandemic also created disruptions in the South Korea alcoholic beverages market, particularly in the foodservice and hospitality sectors. While demand for alcohol during social gatherings and dining out temporarily dropped, there has been a steady recovery as social restrictions eased and consumer confidence returned. However, the lingering effects of the pandemic have led to a shift in consumption patterns, with more South Koreans opting to purchase alcohol for home consumption rather than going to bars or restaurants.
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