Alcoholic Drinks in South Korea
Euromonitor International's Alcoholic Drinks in South Korea market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of volume and value market sizes including on-trade and off-trade, company and brand shares, distribution and pricing data.
Tables: 150 | Publication date: Apr 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Moderate sales volume growth continues
In 2008, alcoholic drinks continued to see moderate volume sales growth, driven by the steady advances made in beer, wine and spirits. The rate of growth was a little slower than in the previous year in view of the gloomy outlook for the domestic economy and the increasing maturity of many product categories. In South Korea, a changing drinking culture is leading to steady volume sales growth in major product categories. As Korean consumers increasingly drink to enjoy the taste and to socialise with others, and not just to get drunk, more consumers are looking for better-quality alcoholic drinks and developing their own tastes and preferences in alcoholic drinks. As a consequence, consumption of alcoholic drinks is becoming less affected by the economic situation, with some product categories showing steady volume growth, despite the slowing economy. In 2008, grape wine, beer and premium whisk(e)y continued to see consistent volume sales growth, while product diversification continued in most product categories to satisfy diverse consumers’ demands.
Grape wine posts the strongest growth
In 2008, grape wine registered the strongest annual volume sales growth in the South Korean alcoholic drinks market. Grape wine continued to post strong double-digit volume growth, backed by the popularity of the wine drinking culture in South Korea. As more companies have entered the wine import and distribution business in South Korea, the range of grape wine products available has been considerably diversified, with major grocery retailers having driven the influx of affordable grape wine in supermarkets/hypermarkets. Grape wine has also been benefiting from medical reports suggesting it is good for the health, and demand for champagne and sparkling wines is growing rapidly, as these products are viewed as stylish drinks among younger consumers.
Hite Brewery Co Ltd leads in volume terms
In 2007, Hite Brewery Co Ltd maintained the leading position in the overall alcoholic drinks market. In volume sales terms, the company had the largest share throughout the review period, thanks to its strong position in beer. In volume terms, the alcoholic drinks market is highly consolidated in South Korea and the four leading companies Hite Brewery Co Ltd, Oriental Brewery Co Ltd, Jinro Co Ltd and Doosan Corp Ltd accounted for almost four fifths of total alcoholic drinks volume sales in 2007. With beer and Soju dominating overall alcoholic drinks sales, beer and Soju companies continued to have strong positions in volume sales terms.
Off-trade sales growing faster than on-trade sales
In 2008, alcoholic drinks volume sales grew faster in the off-trade than in the on-trade, mainly due to the strong growth of supermarkets/hypermarkets. Major supermarket/hypermarket chain operators have diversified their alcoholic drinks product portfolio and led the sales growth of alcoholic drinks in the off-trade channel. In grape wine in particular supermarkets/hypermarkets are driving the rapid sales growth of low- and medium-priced products, as large supermarkets/hypermarkets have in-store wine shops with wide product ranges. Faster off-trade sales are also being supported by the trend of South Korean consumers increasingly preferring to drink quality products at home or when socialising with family and friends.
Steady outlook
Driven mainly by growth in beer, grape wine and spirits, volume sales of alcoholic drinks are predicted to increase over the forecast period. While grape wine will see continued strong volume growth, beer and spirits are expected to see moderate annual volume growth. Over the forecast period, alcoholic drinks will experience even greater product diversification, as growing health concerns and changing drinking culture will lead to further diversification of South Korean consumers’ demands. Premium products are expected to continue to see faster growth, leading to higher value growth than volume growth in most alcoholic drinks categories over the forecast period.
Table of contents
ALCOHOLIC DRINKS IN SOUTH KOREA : MARKET INSIGHT
EXECUTIVE SUMMARY
Moderate sales volume growth continues
Grape wine posts the strongest growth
Hite Brewery Co Ltd leads in volume terms
Off-trade sales growing faster than on-trade sales
Steady outlook
KEY TRENDS AND DEVELOPMENTS
Changing drinking culture leads to steady growth in consumption
Wellbeing trends continuing to have an effect
Young generation and female consumers have increasing importance
South Korean consumers trade up to premium products
Specialist Retailers
Summary 1 Leading Specialist Retailers 2007
Market Merger and Acquisition Activity
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2008
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008
Table 3 Selling Margin of a Typical Domestically Produced Beer Brand 2008
Table 4 Selling Margin of a Typical Domestically Produced Wine Brand 2008
Table 5 Selling Margin of a Typical Imported Wine Brand 2008
Table 6 Selling Margin of a Typical Domestically Produced Spirits Brand 2008
Table 7 Selling Margin of a Typical Imported Spirits Brand 2008
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 8 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008
MARKET DATA
Table 9 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 10 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 11 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 12 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 16 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 17 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 18 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 19 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 21 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 23 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Sources
Summary 2 Research Sources
LOCAL COMPANY PROFILES - SOUTH KOREA
BOHAE BREWERY CO LTD - ALCOHOLIC DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Bohae Brewery Co Ltd: Key Facts
Summary 4 Bohae Brewery Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 5 Bohae Brewery Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 6 Bohae Brewery Co Ltd: Competitive Position 2007
DOOSAN CORP LTD - ALCOHOLIC DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Doosan Corp Ltd: Key Facts
Summary 8 Doosan Corp Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 9 Doosan Corp Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 10 Doosan Corp Ltd: Competitive Position 2007
HITE BREWERY CO LTD - ALCOHOLIC DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Hite Brewery Co Ltd: Key Facts
Summary 12 Hite Brewery Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 13 Hite Brewery Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 14 Hite Brewery Co Ltd: Competitive Position 2007
JINRO CO LTD - ALCOHOLIC DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Jinro Co Ltd: Key Facts
Summary 16 Jinro Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 17 Jinro Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 18 Jinro Co Ltd: Competitive Position 2007
LOTTE CHILSUNG BEVERAGE CO LTD - ALCOHOLIC DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 19 Lotte Chilsung Beverage Co Ltd: Key Facts
Summary 20 Lotte Chilsung Beverage Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 21 Lotte Chilsung Beverage Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 22 Lotte Chilsung Beverage Co Ltd: Competitive Position 2007
BEER IN SOUTH KOREA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager Price Band Methodology
Summary 23 Lager by Price Band 2008
Published Data Comparisons
SECTOR DATA
Table 24 Sales of Beer by Subsector: Total Volume 2003-2008
Table 25 Sales of Beer by Subsector: Total Value 2003-2008
Table 26 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 27 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 32 Beer: Production, Imports and Exports: Total Volume 2002-2007
Table 33 Beer Exports by Country of Destination: Total Volume 2002-2007
Table 34 Beer Exports by Country of Destination: Total Value 2002-2007
Table 35 Beer Imports by Country of Origin: Total Volume 2002-2007
Table 36 Beer Imports by Country of Origin: Total Value 2002-2007
Table 37 Company Shares of Beer by National Brand Owner 2003-2007
Table 38 Company Shares of Beer by Global Brand Owner 2003-2007
Table 39 Brand Shares of Beer 2004-2007
Table 40 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 41 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 42 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 43 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013
CIDER/PERRY IN SOUTH KOREA
RTDS/HIGH-STRENGTH PREMIXES IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Published Data Comparisons
SECTOR DATA
Table 44 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2003-2008
Table 45 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2003-2008
Table 46 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2003-2008
Table 47 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2003-2008
Table 48 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2003-2008
Table 49 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2003-2008
Table 50 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2003-2008
Table 51 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2003-2008
Table 52 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2003-2007
Table 53 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2003-2007
Table 54 Brand Shares of RTDS/High-strength Premixes 2004-2007
Table 55 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2008-2013
Table 56 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2008-2013
Table 57 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2008-2013
Table 58 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2008-2013
WINE IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
Published Data Comparisons
SECTOR DATA
Table 59 Sales of Wine by Subsector: Total Volume 2003-2008
Table 60 Sales of Wine by Subsector: Total Value 2003-2008
Table 61 Sales of Wine by Subsector: % Total Volume Growth 2003-2008
Table 62 Sales of Wine by Subsector: % Total Value Growth 2003-2008
Table 63 Sales of Wine by On-trade vs Off-trade Split: Volume 2003-2008
Table 64 Sales of Wine by On-trade vs Off-trade Split: Value 2003-2008
Table 65 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 66 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 67 Volume Sales of Still Red Wine by Price Segment 2003-2008
Table 68 Volume Sales of Still White Wine by Price Segment 2003-2008
Table 69 Volume Sales of Still Rosé Wine by Price Segment 2003-2008
Table 70 Volume Sales of Other Sparkling Wine by Price Segment 2003-2008
Table 71 Sales of Still Red Wine by Grape/Varietal Type 2003-2008
Table 72 Sales of Still White Wine by Grape/Varietal Type 2003-2008
Table 73 Sales of Still Red Wine by Quality Classification 2003-2008
Table 74 Sales of Still White Wine by Quality Classification 2003-2008
Table 75 Sales of Still Rosé Wine by Quality Classification 2003-2008
Table 76 Wine Production, Imports and Exports: Total Volume 2002-2007
Table 77 Wine Exports by Country of Destination: Total Volume 2002-2007
Table 78 Wine Exports by Country of Destination: Total Value 2002-2007
Table 79 Wine Imports by Country of Origin: Total Volume 2002-2007
Table 80 Wine Imports by Country of Origin: Total Value 2002-2007
Table 81 Company Shares of Still Light Grape Wine by National Brand Owner 2003-2007
Table 82 Company Shares of Still Light Grape Wine by Global Brand Owner 2003-2007
Table 83 Brand Shares of Still Light Grape Wine 2004-2007
Table 84 Company Shares of Champagne by National Brand Owner 2004-2007
Table 85 Company Shares of Champagne by Global Brand Owner 2004-2007
Table 86 Brand Shares of Champagne 2004-2007
Table 87 Company Shares of Other Sparkling Wine by National Brand Owner 2003-2007
Table 88 Company Shares of Other Sparkling Wine by Global Brand Owner 2003-2007
Table 89 Brand Shares of Other Sparkling Wine 2004-2007
Table 90 Company Shares of Non-grape Wine by National Brand Owner 2004-2007
Table 91 Company Shares of Non-grape Wine by Global Brand Owner 2004-2007
Table 92 Brand Shares of Non-grape Wine 2004-2007
Table 93 Forecast Sales of Wine by Subsector: Total Volume 2008-2013
Table 94 Forecast Sales of Wine by Subsector: Total Value 2008-2013
Table 95 Forecast Sales of Wine by Subsector: % Total Volume Growth 2008-2013
Table 96 Forecast Sales of Wine by Subsector: % Total Value Growth 2008-2013
SPIRITS IN SOUTH KOREA
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Vodka, gin and other blended Scotch whisky price band methodology
Published Data Comparisons
SECTOR DATA
Table 97 Sales of Spirits by Subsector: Total Volume 2003-2008
Table 98 Sales of Spirits by Subsector: Total Value 2003-2008
Table 99 Sales of Spirits by Subsector: % Total Volume Growth 2003-2008
Table 100 Sales of Spirits by Subsector: % Total Value Growth 2003-2008
Table 101 Sales of Spirits by On-trade vs Off-trade Split: Volume 2003-2008
Table 102 Sales of Spirits by On-trade vs Off-trade Split: Value 2003-2008
Table 103 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 104 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 105 Sales of Other Blended Scotch Whisky by Premium/Super-premium Split 2003-2008
Table 106 Sales of Gin by Premium/Super-premium Split 2003-2008
Table 107 Sales of Vodka by Premium/Super-premium Split 2003-2008
Table 108 Sales of Flavoured vs Non-flavoured Vodka 2003-2008
Table 109 Spirits Production, Imports and Exports: Total Volume 2002-2007
Table 110 Spirits Exports by Country of Destination: Total Volume 2002-2007
Table 111 Spirits Exports by Country of Destination: Total Value 2002-2007
Table 112 Spirits Imports by Country of Origin: Total Volume 2002-2007
Table 113 Spirits Imports by Country of Origin: Total Value 2002-2007
Table 114 Whisk(e)y Production, Imports and Exports: Total Volume 2002-2007
Table 115 Brandy & Cognac Production, Imports and Exports: Total Volume 2002-2007
Table 116 Vodka Production, Imports and Exports: Total Volume 2002-2007
Table 117 Gin Production, Imports and Exports: Total Volume 2002-2007
Table 118 Rum Production, Imports and Exports: Total Volume 2002-2007
Table 119 Tequila Production, Imports and Exports: Total Volume 2002-2007
Table 120 Liqueurs Production: Total Volume 2002-2007
Table 121 Company Shares of Spirits by National Brand Owner 2003-2007
Table 122 Company Shares of Spirits by Global Brand Owner 2003-2007
Table 123 Brand Shares of Spirits 2004-2007
Table 124 Forecast Sales of Spirits by Subsector: Total Volume 2008-2013
Table 125 Forecast Sales of Spirits by Subsector: Total Value 2008-2013
Table 126 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2008-2013
Table 127 Forecast Sales of Spirits by Subsector: % Total Value Growth 2008-2013