Soft Drinks - South Korea

South Korea, known for its vibrant culture and technological advancements, has seen a significant growth in the Soft Drinks market in recent years.

Customer preferences: South Korean consumers have shown a growing preference for healthier beverage options, leading to a surge in demand for low-sugar and low-calorie soft drinks. This shift in consumer preferences can be attributed to increasing health consciousness and a desire for more natural and nutritious products. Additionally, the convenience of ready-to-drink beverages has also contributed to their popularity among busy urban dwellers.

Trends in the market: One of the prominent trends in the South Korean soft drinks market is the rise of functional beverages. These drinks are formulated with added vitamins, minerals, and other beneficial ingredients to cater to specific health needs. Functional beverages such as energy drinks, sports drinks, and probiotic drinks have gained traction among consumers seeking enhanced performance, hydration, and gut health. Another trend observed in the market is the growing popularity of flavored water. This can be attributed to consumers' desire for a refreshing and hydrating beverage that is also flavorful. Flavored water offers a healthier alternative to sugary soft drinks while still providing a satisfying taste experience.

Local special circumstances: South Korea's unique drinking culture has also influenced the soft drinks market. The country has a strong tradition of consuming beverages with meals, and this has led to a demand for non-alcoholic options that can complement Korean cuisine. Soft drinks such as carbonated fruit drinks and traditional Korean rice-based beverages have gained popularity as accompaniments to meals.

Underlying macroeconomic factors: The growing Soft Drinks market in South Korea can be attributed to several underlying macroeconomic factors. The country's rising disposable income levels and urbanization have resulted in increased consumer spending power and a greater demand for convenience products. Additionally, the influence of Western culture and the adoption of global food and beverage trends have also contributed to the growth of the soft drinks market in South Korea. In conclusion, the Soft Drinks market in South Korea is witnessing significant growth due to changing customer preferences, including a shift towards healthier options and a demand for functional and flavored beverages. The country's unique drinking culture and underlying macroeconomic factors such as rising disposable income and urbanization also play a role in driving the market's development.

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 Non-Alcoholic Drinks, 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 Non-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. The market is updated twice a year.