Alcoholic Drinks - South Korea

The Alcoholic Drinks market in South Korea has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in the Alcoholic Drinks market in South Korea have been shifting towards premium and craft products. Consumers are increasingly seeking high-quality and unique alcoholic beverages, such as artisanal beers and small-batch spirits. This trend is driven by a growing middle class with higher disposable incomes, who are willing to pay a premium for products that offer superior taste and quality. Additionally, there is a rising interest in health and wellness, leading to an increased demand for low-alcohol or alcohol-free alternatives in the market. One of the key trends in the Alcoholic Drinks market in South Korea is the growing popularity of traditional Korean alcoholic beverages. Traditional Korean liquors, such as makgeolli and soju, have seen a resurgence in popularity among younger consumers. This trend is driven by a desire to reconnect with Korean cultural heritage and support local producers. Additionally, these traditional beverages are often perceived as healthier alternatives to Western-style drinks, further contributing to their growing popularity. Local special circumstances also play a significant role in shaping the Alcoholic Drinks market in South Korea. The country has a strong drinking culture, with alcohol often being consumed as part of social gatherings and business meetings. This cultural norm creates a steady demand for alcoholic beverages, especially in the on-trade sector. Furthermore, South Korea has a strict regulatory environment for alcohol sales and distribution, which has led to the dominance of large, established players in the market. However, there has been a recent trend of smaller, independent producers entering the market and challenging the dominance of these established brands. Underlying macroeconomic factors have also contributed to the development of the Alcoholic Drinks market in South Korea. The country has experienced steady economic growth in recent years, leading to an increase in disposable incomes and consumer spending. This has allowed consumers to trade up to higher-quality and more expensive alcoholic beverages. Additionally, the growing popularity of Korean pop culture, known as "Hallyu," has had a positive impact on the Alcoholic Drinks market. Korean celebrities and influencers often endorse alcoholic beverages, leading to increased consumer interest and demand. In conclusion, the Alcoholic Drinks market in South Korea is developing in response to changing customer preferences, local special circumstances, and underlying macroeconomic factors. Consumers are increasingly seeking premium and craft products, as well as traditional Korean beverages. The country's strong drinking culture and strict regulatory environment also shape the market. Overall, the market is expected to continue growing as disposable incomes rise and consumer interest in unique and high-quality alcoholic beverages continues to increase.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.