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.
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Tables: 147 | Publication date: Jun 2007
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- Get insight into trends in market performance
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Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Moderate volume growth in 2006
After a marginal sales volume decline in 2005, the alcoholic drinks market recorded moderate volume growth in 2006. In light of the continued economic recession, manufacturers’ extensive marketing activities were the major growth drivers. In 2006 companies revamped major brands and introduced new products backed up by comprehensive marketing support to satisfy local consumer demands for healthier alcoholic drinks.
Wellbeing trend changes the drinking culture
Local consumers’ increasing health concerns have had significant effects on the consumption pattern of alcoholic drinks, leading to changes in the drinking culture in South Korea. Consumers have shown a growing preference towards alcoholic drinks with a lower alcohol content and grape wine has seen the strongest growth thank to its associated health benefits. With the increasing popularity of affordable New World wines and improved product availability in mass retail outlets, wine is now marketed towards the masses and has influenced the drinking culture in South Korea. Previously, Korean consumers were notorious binge drinkers, but now alcoholic drinks increasingly cater for consumers who are looking for a healthier social life. As a result, products in the market have diversified and companies have begun to implement various marketing tactics by organising social events to target consumers and sponsoring cultural events to promote their products.
Polarised consumer preference
Due to the continuing economic downturn in South Korea, polarised consumption patterns continued to be seen in the alcoholic drinks market. As many consumers have traded down to cheaper alcoholic drinks, sales of relatively expensive alcoholic drinks, such as beer and standard whisky, have struggled, affected by tighter consumer spending. However, low-end offerings such as shochu/soju and takju enjoyed healthy growth.
In 2006, shochu/soju showed a noticeable sales recovery with the help of manufacturers’ marketing activities. Meanwhile, premium products demonstrated signs of recovery, as local consumer tastes have become increasingly sophisticated. High-end premium whisky is leading the sales growth in Western spirits and high-priced wine is pushing growth rates the farthest in the South Korean wine sector.
New products lead to increasing competition
Competition notably increased as the major companies introduced new products and invested heavily in marketing activities. In beer, the key players launched new premium lager brands with extensive marketing support to gain share in the growing premium lager category. In spirits, the shochu/soju category is embroiled in a battle for dominance to attract increasingly health-conscious local consumers with lower alcohol content products. In yakju, key players introduced new products targeted at younger consumers to boost rapidly falling sales, due to the growth of other alcoholic drinks. With their diversified products, companies strengthened their marketing activities and targeted younger consumers and females who they see as having a growing importance in the maturing local alcoholic drinks market. As competition grows across all sectors, companies have been forced to spend more on marketing, thus suffering from declining profitability.
Table of contents
ALCOHOLIC DRINKS IN SOUTH KOREA : MARKET INSIGHT
EXECUTIVE SUMMARY
Moderate volume growth in 2006
Wellbeing trend changes the drinking culture
Polarised consumer preference
New products lead to increasing competition
ALCOHOLIC DRINKS – KEY TRENDS AND DEVELOPMENTS
Wellbeing trends change drinking culture
Polarised consumer preference prevails
Competition increases in light of economic downturn
Off-trade volume sales benefit from attractive pricing and packaging innovation
Modern lifestyles bring more occasions on which to consume alcoholic drinks
Specialist Retailers
Summary 1 Leading Specialist Retailers 2006
Market Merger and Acquisition Activity
MARKET DATA
Table 1 Sales of Alcoholic Drinks by Sector: Total Volume 2001-2006
Table 2 Sales of Alcoholic Drinks by Sector: Total Value 2001-2006
Table 3 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2001-2006
Table 4 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2001-2006
Table 5 Company Shares of Alcoholic Drinks by Global Brand Owner 2003-2005
Table 6 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: Volume 2006
Table 7 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: Value 2006
Table 8 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: % Volume 2006
Table 9 On-trade vs Off-trade Sales of Alcoholic Drinks by Sector: % Value 2006
Table 10 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2006
Table 11 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2006
Table 12 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2006-2011
Table 13 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2006-2011
Table 14 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2006-2011
Table 15 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2006-2011
MARKET INDICATORS
Table 16 Retail Consumer Expenditure on Alcoholic Drinks 2001-2006
APPENDIX
Legislation
Taxation and Duty Levies
Table 17 Taxation and Duty Levies on Alcoholic Drinks 2006
Table 18 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2006
Table 19 Selling Margin of a Typical Beer Brand 2005
Table 20 Selling Margin of a Typical Wine Brand 2005
Table 21 Selling Margin of a Typical Spirits Brand 2005
Operating Environment
Price Band Methodology
Summary 2 Lager by Price Band 2006
Published Data Comparisons
DEFINITIONS
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 2005
COMPETITIVE POSITIONING
Summary 6 Bohae Brewery Co Ltd: Competitive Position 2005
DAESUN DISTILLING CO LTD - ALCOHOLIC DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Daesun Distilling Co Ltd: Key Facts
Summary 8 Daesun Distilling Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 9 Daesun Distilling Co Ltd: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 10 Daesun Distilling Co Ltd: Competitive Position 2005
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 2005
COMPETITIVE POSITIONING
Summary 14 Hite Brewery Co Ltd: Competitive Position 2005
KUMBOKJU CO LTD - ALCOHOLIC DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Kumbokju Co Ltd: Key Facts
Summary 16 Kumbokju Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 17 Kumbokju Co Ltd: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 18 Kumbokju Co Ltd: Competitive Position 2005
MUHAK CO LTD - ALCOHOLIC DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 19 Muhak Co Ltd: Key Facts
Summary 20 Muhak Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 21 Muhak Co Ltd: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 22 Muhak Co Ltd: Competitive Position 2005
BEER IN SOUTH KOREA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 22 Sales of Beer by Subsector: Total Volume 2001-2006
Table 23 Sales of Beer by Subsector: Total Value 2001-2006
Table 24 Sales of Beer by Subsector: % Total Volume Growth 2001-2006
Table 25 Sales of Beer by Subsector: % Total Value Growth 2001-2006
Table 26 On-trade vs Off-trade Sales of Beer: Volume 2001-2006
Table 27 On-trade vs Off-trade Sales of Beer: Value 2001-2006
Table 28 On-trade vs Off-trade Sales of Beer: % Volume Growth 2001-2006
Table 29 On-trade vs Off-trade Sales of Beer: % Value Growth 2001-2006
Table 30 Beer: Production, Imports and Exports: Total Volume 2001-2005
Table 31 Beer Exports by Country of Destination: Total Volume 2001-2005
Table 32 Beer Exports by Country of Destination: Total Value 2001-2005
Table 33 Beer Imports by Country of Origin: Total Volume 2001-2005
Table 34 Beer Imports by Country of Origin: Total Value 2001-2005
Table 35 Company Shares of Beer by National Brand Owner 2001-2005
Table 36 Company Shares of Beer by Global Brand Owner 2001-2005
Table 37 Brand Shares of Beer 2002-2005
Table 38 Forecast Sales of Beer by Subsector: Total Volume 2006-2011
Table 39 Forecast Sales of Beer by Subsector: Total Value 2006-2011
Table 40 Forecast Sales of Beer by Subsector: % Total Volume Growth 2006-2011
Table 41 Forecast Sales of Beer by Subsector: % Total Value Growth 2006-2011
CIDER/PERRY IN SOUTH KOREA
HEADLINES
RTDS/HIGH-STRENGTH PREMIXES IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Sales of RTDs/High-Strength Premixes by Subsector: Total Volume 2001-2006
Table 43 Sales of RTDs/High-Strength Premixes by Subsector: Total Value 2001-2006
Table 44 Sales of RTDs/High-Strength Premixes by Subsector: % Total Volume Growth 2001-2006
Table 45 Sales of RTDs/High-Strength Premixes by Subsector: % Total Value Growth 2001-2006
Table 46 On-trade vs Off-trade Sales of RTDs/High-Strength Premixes: Volume 2001-2006
Table 47 On-trade vs Off-trade Sales of RTDs/High-Strength Premixes: Value 2001-2006
Table 48 On-trade vs Off-trade Sales of RTDs/High-Strength Premixes: % Volume Growth 2001-2006
Table 49 On-trade vs Off-trade Sales of RTDs/High-Strength Premixes: % Value Growth 2001-2006
Table 50 RTDs/High-Strength Premixes Production, Imports and Exports: Total Volume 2001-2005
Table 51 Company Shares of RTDs/High-Strength Premixes by National Brand Owner 2001-2005
Table 52 Company Shares of RTDs/High-Strength Premixes by Global Brand Owner 2001-2005
Table 53 Brand Shares of RTDs/High-Strength Premixes 2002-2005
Table 54 Forecast Sales of RTDs/High-Strength Premixes by Subsector: Total Volume 2006-2011
Table 55 Forecast Sales of RTDs/High-Strength Premixes by Subsector: Total Value 2006-2011
Table 56 Forecast Sales of RTDs/High-Strength Premixes by Subsector: % Total Volume Growth 2006-2011
Table 57 Forecast Sales of RTDs/High-Strength Premixes by Subsector: % Total Value Growth 2006-2011
WINE IN SOUTH KOREA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 58 Sales of Wine by Subsector: Total Volume 2001-2006
Table 59 Sales of Wine by Subsector: Total Value 2001-2006
Table 60 Sales of Wine by Subsector: % Total Volume Growth 2001-2006
Table 61 Sales of Wine by Subsector: % Total Value Growth 2001-2006
Table 62 On-trade vs Off-trade Sales of Wine: Volume 2001-2006
Table 63 On-trade vs Off-trade Sales of Wine: Value 2001-2006
Table 64 On-trade vs Off-trade Sales of Wine: % Volume Growth 2001-2006
Table 65 On-trade vs Off-trade Sales of Wine: % Value Growth 2001-2006
Table 66 Volume Sales of Still Red Wine by Price Segment 2004-2006
Table 67 Volume Sales of Still White Wine by Price Segment 2004-2006
Table 68 Volume Sales of Still Rosé Wine by Price Segment 2004-2006
Table 69 Volume Sales of Other Sparkling Wine by Price Segment 2004-2006
Table 70 Sales of Still Red Wine by Grape/Varietal Type 2004-2006
Table 71 Sales of Still White Wine by Grape/Varietal Type 2004-2006
Table 72 Sales of Still Red Wine by Quality Classification 2001-2006
Table 73 Sales of Still White Wine by Quality Classification 2001-2006
Table 74 Sales of Still Rosé Wine by Quality Classification 2001-2006
Table 75 Sales of Non-grape Wine by Type: Total Volume 2001-2006
Table 76 Sales of Non-grape Wine by Type: Total Value 2001-2006
Table 77 Sales of Non-grape Wine by Type: % Total Volume Growth 2001-2006
Table 78 Sales of Non-grape Wine by Type: % Total Value Growth 2001-2006
Table 79 Wine Production, Imports and Exports: Total Volume 2001-2005
Table 80 Wine Exports by Country of Destination: Total Volume 2001-2005
Table 81 Wine Exports by Country of Destination: Total Value 2001-2005
Table 82 Wine Imports by Country of Origin: Total Volume 2001-2005
Table 83 Wine Imports by Country of Origin: Total Value 2001-2005
Table 84 Company Shares of Still Light Grape Wine by National Brand Owner 2002-2005
Table 85 Company Shares of Still Light Grape Wine by Global Brand Owner 2002-2005
Table 86 Brand Shares of Still Light Grape Wine 2002-2005
Table 87 Company Shares of Champagne by National Brand Owner 2003-2005
Table 88 Company Shares of Champagne by Global Brand Owner 2003-2005
Table 89 Brand Shares of Champagne 2003-2005
Table 90 Company Shares of Other Sparkling Wine by National Brand Owner 2002-2005
Table 91 Company Shares of Other Sparkling Wine by Global Brand Owner 2002-2005
Table 92 Brand Shares of Other Sparkling Wine 2002-2005
Table 93 Company Shares of Non-grape Wine by National Brand Owner 2003-2005
Table 94 Company Shares of Non-grape Wine by Global Brand Owner 2003-2005
Table 95 Brand Shares of Non-grape Wine 2003-2005
Table 96 Forecast Sales of Wine by Subsector: Total Volume 2006-2011
Table 97 Forecast Sales of Wine by Subsector: Total Value 2006-2011
Table 98 Forecast Sales of Wine by Subsector: % Total Volume Growth 2006-2011
Table 99 Forecast Sales of Wine by Subsector: % Total Value Growth 2006-2011
SPIRITS IN SOUTH KOREA
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 100 Sales of Spirits by Subsector: Total Volume 2001-2006
Table 101 Sales of Spirits by Subsector: Total Value 2001-2006
Table 102 Sales of Spirits by Subsector: % Total Volume Growth 2001-2006
Table 103 Sales of Spirits by Subsector: % Total Value Growth 2001-2006
Table 104 On-trade vs Off-trade Sales of Spirits: Volume 2001-2006
Table 105 On-trade vs Off-trade Sales of Spirits: Value 2001-2006
Table 106 On-trade vs Off-trade Sales of Spirits: % Volume Growth 2001-2006
Table 107 On-trade vs Off-trade Sales of Spirits: % Value Growth 2001-2006
Table 108 Sales of Blended Scotch Whisky by Premium/Super-premium Split 2004-2006
Table 109 Sales of Gin by Premium/Super-premium Split 2004-2006
Table 110 Sales of Vodka by Premium/Super-premium Split 2004-2006
Table 111 Sales of Vodka by Flavoured vs Non-flavoured 2004-2006
Table 112 Spirits Production, Imports and Exports: Total Volume 2001-2005
Table 113 Whisk(e)y Production, Imports and Exports: Total Volume 2001-2005
Table 114 Brandy & Cognac Production, Imports and Exports: Total Volume 2001-2005
Table 115 Vodka Production, Imports and Exports: Total Volume 2001-2005
Table 116 Gin Production, Imports and Exports: Total Volume 2001-2005
Table 117 Rum Production, Imports and Exports: Total Volume 2001-2005
Table 118 Liqueurs Production, Imports and Exports: Total Volume 2001-2005
Table 119 Company Shares of Spirits by National Brand Owner 2001-2005
Table 120 Company Shares of Spirits by Global Brand Owner 2001-2005
Table 121 Brand Shares of Spirits 2002-2005
Table 122 Forecast Sales of Spirits by Subsector: Total Volume 2006-2011
Table 123 Forecast Sales of Spirits by Subsector: Total Value 2006-2011
Table 124 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2006-2011
Table 125 Forecast Sales of Spirits by Subsector: % Total Value Growth 2006-2011