Soft Drinks in South Korea
Euromonitor International's Soft 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: 157 | Publication date: Jul 2008
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
Asian speciality drinks; Bottled water; Carbonates; Concentrates; Fruit/vegetable juice; Functional drinks; RTD coffee; RTD tea
Executive summary
Soft drinks market sees upturn due to economic and lifestyle changes
The soft drinks market in South Korea saw an overall return to growth in 2007, with an increase in current value terms of almost 2%, compared with the 6% decline seen in 2006. This was due to economic recovery in the country, and increased consumer awareness of health issues, which led to changes in purchasing patterns. Accelerating lifestyles among urban consumers also led to increased demand for products suitable for on-the-go consumption. This was particularly true of products with healthier positioning, such as RTD tea and bottled water in packaging formats suitable for on-the-go consumption.
Health trend impacts product demand
Increasing consumer awareness of health issues contributed to the performance of many products in 2007. Carbonates suffered from being perceived as unhealthy, particularly cola carbonates. This led to many consumers moving towards consumption of colourless or lighter-coloured products, which they perceived as being more natural. There was also increased interest in products such as bottled water, and particularly still RTD tea. By contrast, RTD coffee suffered from perceptions of high fat and sugar content, making such products unappealing, particularly to young adult females.
Ban on sales of carbonates in schools
In an effort to combat the growing number of school-age consumers suffering obesity, the South Korean Government banned sales of carbonates in the country’s schools at the end of the review period. This had an obvious adverse impact on the performance of carbonates, but benefited sales of some fruit and vegetable juice products. Juice drinks (up to 24% juice) particularly benefited from this factor, as these products continued to be available, and appealed to students in terms of both flavour and price.
Bottled water predominantly purchased as alternative to tap water
The main reason still bottled is purchased in South Korea is consumer concerns regarding the quality of tap water. As a result 1- to 2-litre presentations are particularly important, purchased for storage at home for daily consumption. However, as the health trend increases purchases of smaller packaging sizes are likely to increase as consumers buy water on impulse for on-the-go consumption.
Multinational players present through local companies
The leading player in the South Korean soft drinks market in 2007 was Lotte Chilsung Beverage Co Ltd – offering products from PepsiCo – followed by Coca-Cola Korea Co. These were the only two players to hold double-digit value shares in this market, with numerous local players holding lesser shares of less than 10%. The strong position of these multinational-backed companies is due to their greater ability to invest in advertising and promotional support for their products compared with their domestic counterparts. They are also able to leverage on familiarity with their names and their extensive product portfolios.
Forecast period predicted to see health trend continue
Continued constant value growth is expected, albeit moderate. The health trend will continue to have an impact, with moves away from carbonates – particularly the traditional cola carbonates – towards healthier alternatives such as fruit and vegetable juice, still RTD tea and still bottled water. As consumers become more sophisticated and more affluent as the economy improves, they are likely to demonstrate interest in products with added-value properties, such as high fruit content carbonates and RTD tea products containing ginseng, for example. Increasing interest in sporting activities is also likely to stimulate demand for sports drinks, with such products also likely to become popular among busy working consumers seeking an on-the-go boost.
Table of contents
SOFT DRINKS IN SOUTH KOREA : MARKET INSIGHT
EXECUTIVE SUMMARY
Soft drinks market sees upturn due to economic and lifestyle changes
Health trend impacts product demand
Ban on sales of carbonates in schools
Bottled water predominantly purchased as alternative to tap water
Multinational players present through local companies
Forecast period predicted to see health trend continue
KEY TRENDS AND DEVELOPMENTS
Soft drinks market sees return to growth
Non-soft drinks manufacturers enter soft drinks market
LG Household & Health Care acquires Coca-Cola Korea Bottling Co Ltd
Packaging designs change to attract consumers
MARKET DATA
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2002-2007
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2002-2007
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2002-2007
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2002-2007
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2007
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2007
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2007
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2007
Table 9 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2002-2007
Table 10 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2002-2007
Table 11 Off-trade Sales of Soft Drinks by Sector: Value 2002-2007
Table 12 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2002-2007
Table 13 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2003-2007
Table 14 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2004-2007
Table 15 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2003-2007
Table 16 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2004-2007
Table 17 Company Shares of Off-trade Soft Drinks by Value 2003-2007
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2004-2007
Table 19 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2007
Table 20 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2007-2012
Table 21 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2007-2012
Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2007-2012
Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2007-2012
Table 24 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2007-2012
Table 25 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2007-2012
Table 26 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2007-2012
Table 27 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2007-2012
APPENDIX
Table 28 Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2002-2007
Table 29 Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2002-2007
Table 30 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2003-2007
Table 31 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2004-2007
Table 32 Company Shares of Concentrates (RTD) by Off-trade Volume 2003-2007
Table 33 Brand Shares of Concentrates (RTD) by Off-trade Volume 2004-2007
Table 34 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2007-2012
Table 35 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2007-2012
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SOUTH KOREA
HAITAI BEVERAGE CO LTD - SOFT DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Haitai Beverage Co Ltd: Key Facts
Summary 3 Haitai Beverage Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 4 Haitai Beverage Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 5 Haitai Beverage Co Ltd: Competitive Position 2007
KWANGDONG PHARMACEUTICAL CO LTD - SOFT DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Kwangdong Pharmaceutical Co Ltd : Key Facts
Summary 7 Kwangdong Pharmaceutical Co Ltd : Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Kwangdong Pharmaceutical Co Ltd : Competitive Position 2007
LOTTE CHILSUNG BEVERAGE CO LTD - SOFT DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Lotte Chilsung Beverage Co Ltd: Key Facts
Summary 10 Lotte Chilsung Beverage Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 Lotte Chilsung Beverage Co Ltd: Competitive Position 2007
MAEIL DAIRY INDUSTRY CO LTD - SOFT DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Maeil Diary Co Ltd: Key Facts
Summary 13 Maeil Diary Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 14 Maeil Diary Co Ltd: Competitive Position 2007
NONG SHIM CO LTD - SOFT DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Nong Shim Co Ltd: Key Facts
Summary 16 Nong Shim Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 17 Nong Shim Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 18 Nong Shim Co Ltd: Competitive Position 2007
CARBONATES IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 36 Off-trade Sales of Carbonates by Subsector: Volume 2002-2007
Table 37 Off-trade Sales of Carbonates by Subsector: Value 2002-2007
Table 38 Off-trade Sales of Carbonates by Subsector: % Volume Growth 2002-2007
Table 39 Off-trade Sales of Carbonates by Subsector: % Value Growth 2002-2007
Table 40 On-trade vs Off-trade Sales of Carbonates: Volume 2002-2007
Table 41 On-trade vs Off-trade Sales of Carbonates: Value 2002-2007
Table 42 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2002-2007
Table 43 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2002-2007
Table 44 Company Shares of Carbonates by Off-trade Volume 2003-2007
Table 45 Brand Shares of Carbonates by Off-trade Volume 2004-2007
Table 46 Company Shares of Carbonates by Off-trade Value 2003-2007
Table 47 Brand Shares of Carbonates by Off-trade Value 2004-2007
Table 48 Forecast Off-trade Sales of Carbonates by Subsector: Volume 2007-2012
Table 49 Forecast Off-trade Sales of Carbonates by Subsector: Value 2007-2012
Table 50 Forecast Off-trade Sales of Carbonates by Subsector: % Volume Growth 2007-2012
Table 51 Forecast Off-trade Sales of Carbonates by Subsector: % Value Growth 2007-2012
FRUIT/VEGETABLE JUICE IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 52 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2002-2007
Table 53 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2002-2007
Table 54 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2002-2007
Table 55 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2002-2007
Table 56 Leading Flavours for 100% Juice: % Volume Breakdown 2003-2007
Table 57 Leading Flavours for Nectars (25-99% Juice): % Volume Breakdown 2003-2007
Table 58 Leading Flavours for Juice Drinks (up to 24% Juice): % Volume Breakdown 2003-2007
Table 59 % Share of Smoothies in 100% Juice and Nectars (25-99% Juice): Off-trade Value 2006
Table 60 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2003-2007
Table 61 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2004-2007
Table 62 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2003-2007
Table 63 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2004-2007
Table 64 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2007-2012
Table 65 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2007-2012
Table 66 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2007-2012
Table 67 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2007-2012
BOTTLED WATER IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 68 Off-trade Sales of Bottled Water: Volume 2002-2007
Table 69 Off-trade Sales of Bottled Water: Value 2002-2007
Table 70 Off-trade Sales of Bottled Water: % Volume Growth 2002-2007
Table 71 Off-trade Sales of Bottled Water: % Value Growth 2002-2007
Table 72 Company Shares of Bottled Water by Off-trade Volume 2003-2007
Table 73 Brand Shares of Bottled Water by Off-trade Volume 2004-2007
Table 74 Company Shares of Bottled Water by Off-trade Value 2003-2007
Table 75 Brand Shares of Bottled Water by Off-trade Value 2004-2007
Table 76 Forecast Off-trade Sales of Bottled Water: Volume 2007-2012
Table 77 Forecast Off-trade Sales of Bottled Water: Value 2007-2012
Table 78 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2007-2012
Table 79 Forecast Off-trade Sales of Bottled Water: % Value Growth 2007-2012
FUNCTIONAL DRINKS IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 80 Off-trade Sales of Functional Drinks by Subsector: Volume 2002-2007
Table 81 Off-trade Sales of Functional Drinks by Subsector: Value 2002-2007
Table 82 Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2002-2007
Table 83 Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2002-2007
Table 84 Company Shares of Functional Drinks by Off-trade Volume 2003-2007
Table 85 Brand Shares of Functional Drinks by Off-trade Volume 2004-2007
Table 86 Company Shares of Functional Drinks by Off-trade Value 2003-2007
Table 87 Brand Shares of Functional Drinks by Off-trade Value 2004-2007
Table 88 Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2007-2012
Table 89 Forecast Off-trade Sales of Functional Drinks by Subsector: Value 2007-2012
Table 90 Forecast Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2007-2012
Table 91 Forecast Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2007-2012
CONCENTRATES IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR APPENDIX
Concentrates Conversions
Summary 19 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format
SECTOR DATA
Table 92 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2002-2007
Table 93 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2002-2007
Table 94 Off-trade Sales of Concentrates by Subsector: Value 2002-2007
Table 95 Off-trade Sales of Concentrates by Subsector: % Value Growth 2002-2007
Table 96 Company Shares of Concentrates by Off-trade Value 2003-2007
Table 97 Brand Shares of Concentrates by Off-trade Value 2004-2007
Table 98 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2007-2012
Table 99 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2007-2012
Table 100 Forecast Off-trade Sales of Concentrates by Subsector: Value 2007-2012
Table 101 Forecast Off-trade Sales of Concentrates by Subsector: % Value Growth 2007-2012
RTD TEA IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 102 Off-trade Sales of RTD Tea by Subsector: Volume 2002-2007
Table 103 Off-trade Sales of RTD Tea by Subsector: Value 2002-2007
Table 104 Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2002-2007
Table 105 Off-trade Sales of RTD Tea by Subsector: % Value Growth 2002-2007
Table 106 Leading Flavours for RTD Tea: % Volume Breakdown 2005-2007
Table 107 Company Shares of RTD Tea by Off-trade Volume 2003-2007
Table 108 Brand Shares of RTD Tea by Off-trade Volume 2003-2007
Table 109 Company Shares of RTD Tea by Off-trade Value 2003-2007
Table 110 Brand Shares of RTD Tea by Off-trade Value 2004-2007
Table 111 Forecast Off-trade Sales of RTD Tea by Subsector: Volume 2007-2012
Table 112 Forecast Off-trade Sales of RTD Tea by Subsector: Value 2007-2012
Table 113 Forecast Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2007-2012
Table 114 Forecast Off-trade Sales of RTD Tea by Subsector: % Value Growth 2007-2012
RTD COFFEE IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 115 Off-trade Sales of RTD Coffee: Volume 2002-2007
Table 116 Off-trade Sales of RTD Coffee: Value 2002-2007
Table 117 Off-trade Sales of RTD Coffee: % Volume Growth 2002-2007
Table 118 Off-trade Sales of RTD Coffee: % Value Growth 2002-2007
Table 119 Company Shares of RTD Coffee by Off-trade Volume 2003-2007
Table 120 Brand Shares of RTD Coffee by Off-trade Volume 2004-2007
Table 121 Company Shares of RTD Coffee by Off-trade Value 2003-2007
Table 122 Brand Shares of RTD Coffee by Off-trade Value 2004-2007
Table 123 Forecast Off-trade Sales of RTD Coffee: Volume 2007-2012
Table 124 Forecast Off-trade Sales of RTD Coffee: Value 2007-2012
Table 125 Forecast Off-trade Sales of RTD Coffee: % Volume Growth 2007-2012
Table 126 Forecast Off-trade Sales of RTD Coffee: % Value Growth 2007-2012
ASIAN SPECIALITY DRINKS IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 127 Off-trade Sales of Asian Speciality Drinks by Subsector: Volume 2002-2007
Table 128 Off-trade Sales of Asian Speciality Drinks by Subsector: Value 2002-2007
Table 129 Off-trade Sales of Asian Speciality Drinks by Subsector: % Volume Growth 2002-2007
Table 130 Off-trade Sales of Asian Speciality Drinks by Subsector: % Value Growth 2002-2007
Table 131 Company Shares of Asian Speciality Drinks by Off-trade Volume 2003-2007
Table 132 Brand Shares of Asian Speciality Drinks by Off-trade Volume 2004-2007
Table 133 Company Shares of Asian Speciality Drinks by Off-trade Value 2003-2007
Table 134 Brand Shares of Asian Speciality Drinks by Off-trade Value 2004-2007
Table 135 Forecast Off-trade Sales of Asian Speciality Drinks by Subsector: Volume 2007-2012
Table 136 Forecast Off-trade Sales of Asian Speciality Drinks by Subsector: Value 2007-2012
Table 137 Forecast Off-trade Sales of Asian Speciality Drinks by Subsector: % Volume Growth 2007-2012
Table 138 Forecast Off-trade Sales of Asian Speciality Drinks by Subsector: % Value Growth 2007-2012