South Korea Sugar Free Beverages Market Report and Forecast 2024-2032

South Korea Sugar Free Beverages Market Outlook

The South Korea market size for sugar free beverages reached a value of more than USD 281.32 million in 2023. The South Korea sugar free beverages industry is expected to grow at a CAGR of 18.5% between 2024 and 2032, reaching a value of USD 1,296.18 million by 2032.

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Key Trends in the South Korea Sugar Free Beverages Market

Technically, sugar-free refers to varieties of beverages that have been artificially sweetened and contain little or no calories. It essentially indicates that the drinks have less than 0.5 grammes of sugar, both naturally occurring and added. Those beverages that contain less than 0.5 g of sugar per 100 ml or 100 g are regarded as sugar-free. Contrarily, "no added sugar" denotes the absence of sugar as a component in the product. Therefore, it solely includes sugar that occurs naturally.

Drinks With No-Sugar May Reduce Diabetes Risk, Help People Lose Weight, and Support the Growth of the Sugar free Beverages Industry of South Korea

Low-calorie and no-calorie beverages have similar effects on weight and metabolism as water. According to some studies, there is a slight reduction in weight, BMI, and diabetes risk  when non-calorie or low-calorie beverages were substituted for drinks with added sugar. It is uncertain how non-nutritive sweeteners (NNSs), which include stevia, aspartame, and sucralose, may affect metabolism and weight in the long run. Artificially sweetened beverages may help you consume less calories, but they might also slow down your metabolism and make weight reduction more difficult. As per some studies, using NNSs like sucralose and aspartame is linked to both type 2 diabetes and increased body weight.

Non-Alcoholic and Sugar-Free Beer Gaining Traction Among the Young South Korean Population

In the liquor industry, non-alcoholic and sugar-free zero-calorie beverages are becoming more and more well-liked as the so-called "healthy pleasure" lifestyle, in which individuals maintain their health by engaging in activities they like, becoming more and more popular. In August 2023, sales of the alcohol-free Hite Zero 0.00 beer from Hite Jinro Co. surpassed 100 million cans . With only 4kcal per 100mL, it almost has no calories. In just two months after its September 2023 release, the sugar-free soju produced by Lotte Chilsung Beverage Co. has sold approximately 14 million bottles of the traditional Korean distilled beer. A crucial component of intuitive eating, which places an emphasis on pleasure, mindfulness, and an awareness of the five senses, is eating for satisfaction. It entails selecting meals one loves and making the effort to consume them slowly and gently. This trend is being adopted by diet-conscious people who prefer eating healthily and judiciously. This factor is boosting the growth of the sugar free beverages market in South Korea.

Growing Preference for Sustainable Items is compelling Manufacturers to Shift to Eco-Friendly Packaging

In an attempt to support the circular economy, LOTTE Group intends to decrease the usage of unneeded disposables and boost the use of eco-friendly packaging. For this purpose, the company has established a council that will oversee the creation and use of eco-friendly packaging across all the subsidiaries. By concentrating on making food-grade containers lightweight, integrating materials, and researching biodegradable vinyl materials, the business intends to explore the creation of eco-friendly delivery boxes and the building of a box recovery and recycling system in order to increase LOTTE Group stores' use of eco-friendly recycled packaging to 50% by 2025. These environmentally friendly packaging solutions encourage consumers to shift to eco-friendly options available in the market, thereby augmenting the sugar free beverages market of South Korea.

Market Analysis

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Based on type, the South Korea sugar free beverages market is segmented into energy drinks, fruit and vegetable juices, ready-to-go drinks, carbonated soft drinks, and alcoholic drinks, among others. Based on distribution channels, the sugar free beverages market of South Korea is divided into supermarkets/ hypermarkets, convenience stores, and online, among others.

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 sugar free beverages market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans. 

• The Coca-Cola Company

• Lotte Chilsung Beverage Co., Ltd.

• The Kraft Heinz Company

• PepsiCo, Inc.

• Red Bull GmbH

• Hitejinro Co.,Ltd.

• Others

Market Share by Type

Manufacturing operations were shut down entirely or in part as a result of the COVID-19 outbreak. Only necessary commodities could be transported, and there were travel restrictions that interfered with the supply chains. However, the sales of carbonated drinks without sugar were not severely impacted. At-home consumption of sugar free carbonated soft drinks, alcoholic drinks, and juices quickly increased in the market. The market is seeing an increase in demand for healthier beverages as a result of growing concerns about obesity and diabetes and widespread knowledge of these issues.

Market Share by Distribution Channels

With excellent internet penetration and prevalence of e-commerce in the country, online retail stores are steadily growing which is giving competition to offline stores such as supermarkets/ hypermarkets and convenience stores, among others. Fast food chains, cloud kitchens, quick service restaurants, meal delivery services, and restaurant chains all contribute to the expansion of the market for sugar free carbonated beverages. The market for sugar-free carbonated beverages does confront certain challenges, though. These include rising raw material costs, seasonality, and a drop in the use of drinks with carbonation, which restrains sugar free beverages market expansion.

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Competitive Landscape

The Kraft Heinz Company- With eight brands worth $1 billion or more and annual global sales of almost $25 billion, The Kraft Heinz Company is one of the biggest food and beverages firms in the world. They have been a reputable manufacturer of high-quality, delicious, and nutrient-rich meals for more than 150 years. Despite having joint headquarters in Chicago and Pittsburgh, Kraft Heinz's brands are genuinely international, with goods being made and sold in more than 40 nations. In a portfolio of more than 200 historic and growing brands, these well-liked goods include cheese and dairy, condiments and sauces, meats, coffee, refreshment beverages, nutrition and baby products, as well as several other supermarket items.

Hitejinro Co.,Ltd.- Hite Jinro Co Ltd (Hite Jinro) is an alcoholic beverage manufacturer, marketer, and distributor. Beverages offered by the corporation include beer, soju, whisky, sake, and wine. The firm sells its goods both nationally and abroad, including in Japan, North America, China, Mongolia, and other nations. The business is headquartered in Seoul, South Korea. In 1954, Hite Jinro Co., Ltd. was established.

Key Highlights of the Report