South Korea Beer Market Report and Forecast 2024-2032

South Korea Beer Market Outlook

The South Korea beer market size reached a value of more than USD 21.14 billion in 2023. The South Korea beer industry is expected to grow at a CAGR of 4.6% between 2024 and 2032, reaching a value of USD 31.70 billion by 2032.

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Key Trends in the South Korea Beer Market

Beer is an alcoholic beverage with a frothy texture and a flavour of malt. Beer is the alcoholic beverage that is most often consumed worldwide, and it is also said to be the oldest. By fermenting a grain, typically barley or wheat, and adding hops or any other flavours, brewers create beer.

One of Asia's biggest beer markets is said to be the Korean market. Given the country's population and reputation for soju consumption, this may come as a surprise. But when it comes to beer consumption, Korea is among the top 20 countries, and it is the most popular alcoholic beverage, followed by soju.

Drink Culture and Work Gatherings Propels the Growth of South Korea Beer Market

In South Korea, drinking is a significant aspect of daily life. Alcohol is consumed regularly as well as on special occasions in a private setting. This culture has always been ingrained in Korean society, and especially in professional settings, alcohol is consumed very frequently. Coworkers go out frequently as people go for meals and beverages after work. It is thought to be a crucial component in team building and forming bonds with fellow coworkers. People in Korea work around 12 hours a day. Employees, therefore, spend more time at work than at home. Additionally, the corporate culture in Korea is considered to be quite hierarchical, and consuming alcohol during after-hours work gatherings may loosen up these rigid top-down networks, which aids in bolstering the beer market in South Korea.

Craft Beer is Gaining Traction Among the Younger Population Due to the Expansion of Microbreweries in South Korea

Koreans are encouraged to drink expensive beer by well-known beer companies and craft beer startups. Craft beers may generate more revenue than conventional beers. Due to the enormous potential, craft beer businesses in South Korea have been steadily growing. In addition, there are now more microbreweries in South Korea. These smaller companies are making some of the most intriguing and distinctive craft beers, and they are gradually becoming successful. People's willingness to try new things is another factor. Customers may explore a huge variety of beer styles and flavour nuances with craft beer. Additionally, customers who are younger are more likely to enjoy craft beer in a bar or restaurant.

The Volume-Based Liquor Tax and the Growing Inclination for Premium Beer to Augment the Market Growth

Beer is now considered a lifestyle product, which is increasing its popularity, particularly among young people. The beer market in South Korea is becoming more varied. Local consumers are calling for more variety in beer goods, supported by increased consumer awareness of the various beer assortments, active product innovation initiatives by domestic and international brewers, and accelerated premiumization. Millennials are becoming increasingly interested in ales, fruit beers, and dark beers. They can currently afford the more costly, premium beers they desire. On January 1, 2020, the Korean government implemented a volume-based liquor tax on beer, which lowers the tax burden for higher grade beers, including imported craft beer from the United States. In the upcoming years, development potential for American beer exports to Korea should result from the tax reform as well as rising Korean consumption patterns for quality and variety.

Market Analysis

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Based on the packaging material, the South Korea beer market is segmented into glass, metal, and PET. On the basis of packaging type, the beer market of South Korea is divided into bottle and can, among others. Based on distribution channel, the South Korea beer market is bifurcated into retail and restaurants and bars. The retail segment is sub-segmented into hypermarkets, convenience stores, and specialised shops.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the South Korea beer market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans. 

• Oriental Brewery

• Hite Brewery Company Limited

• Heineken N.V.

• Lotte Chilsung Beverage Co., LTD.

• LOTTE Asahi Co., Ltd.

• BK Co.,Ltd.

• Magpie Brewing Co.

• Galmegi Brewing Co.

• Jeju Beer Co., Ltd

• Others

Market Share by Packaging Material

As drinking is viewed as a significant component of social life and is frequently promoted at social and professional occasions, the beer sector in South Korea has a lot of potential. Despite the fact that older people are drinking less owing to health concerns, overall alcohol consumption is still high because of young consumers. Moreover, the growing consumer awareness regarding the environment, rising disposable income, and ease of convenience aid the market growth. Since beer is consumed in almost every personal and professional setting, the market for all types of packaging materials, i.e., glass, metal, and PET, is anticipated to grow during the forecast period.

Market Share by Packaging Type

A highly popular option for beer packaging is canning. Numerous significant breweries have opted to package their beers in cans, occasionally in conjunction with bottling. Cans lack the same sense of heritage that comes with bottles, but they seem more modern, creative, and simple. If the manufacturer wants to pack a beer aimed at a young audience, this is the best option. Glass is visually attractive, natural, and hygienic. The bottle packaging is retained by producers that run microbreweries and wish to come off as skilled artisans carrying on a long history. Factors such as intensive social media marketing and promotion activities, premiumisation of beer have greatly contributed to increasing the revenue of beer in South Korea.

Market Share by Distribution Channel

Offline stores such as supermarkets/hypermarkets and convenience stores put a strong emphasis on high quality, and various brands of food and beverages are available there. Consumers get to opt for varieties at competitive prices. Korea is a technologically advanced country with one of the most developed online retail distribution channels. With the changing lifestyle and busy schedule, the online segment is growing significantly in the country, leading to the development of the beer market in South Korea.

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Competitive Landscape

Oriental Brewery- Oriental Brewery, a part of AB InBev, is South Korea's largest brewer. Oriental Brewery, often known as OB, has a market share of almost 50% of the beer market in South Korea based on sales income. In addition to a variety of other top-selling mainstream beers like OB Golden Lager and Cafri, Oriental Brewery distributes the well-known beer brand Cass, which was the top-selling beer brand in South Korea in 2019. Additionally, a large number of AB InBev brands, including Beck's, Budweiser (in cans), Leffe, Corona, Stella Artois, and Löwenbräu are imported and distributed by the business in Korea. The business is headquartered in Cheongju, South Korea.

Magpie Brewing Co.- Local craft beer producer Magpie is from South Korea. With the straightforward objective of producing excellent, distinctive beer, Magpie Brewing Company was founded in 2011. The business designed its first two formulations, Magpie Pale Ale and Magpie Porter, to be flavorful but simple to drink. The company is known for their range of craft beers and for popularising the concept in the country. The headquarters of Magpie Brewing Co. is situated in Seoul, South Korea.

Key Highlights of the Report