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: 160 | Publication date: May 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
Asian speciality drinks; Bottled water; Carbonates; Concentrates; Fruit/vegetable juice; Functional drinks; RTD coffee; RTD tea
Executive summary
Soft drinks grows in volume and value sales terms
2008 was a relatively positive year for the soft drinks industry in South Korea. The industry registered sales growth rate in both current value and volume terms. RTD tea and coffee performed well in total volume and value sales terms due to the increased demand for products suitable for on-the-go consumption. Carbonates also experienced total volume and value growth rate in 2008, reversing a three year period of decline. As soft drinks develops and grows, it is projected to be increasingly competitive, with new players entering the industry. This will lead to increasingly aggressive marketing efforts. The future impact will be a continuously expanding industry, with RTD coffee and tea representing the most popular products for many local consumers.
The polarisation of the soft drinks consumer base
Soft drinks in South Korea is polarised in terms of consumer groups. The first group consists of price sensitive consumers who seek value for money in their soft drink purchases. The second group consists of less price sensitive consumers who are focused more on purchasing high-grade premium products. The consumers in the second group also tend to be more health-conscious. More products will be released, especially private label, for price sensitive consumers. For the second consumer group, more premium products will be introduced to satisfy their demands for quality and taste. The culmination of this activity will be greater product diversification and higher volume and value sales growth over the forecast period. Local South Korean manufacturers also face economic difficulties due to, among other things, a disadvantageous economic environment and a weak local currency. Input costs have also increased, thus placing upward pressure on unit and retail prices.
The health and wellness trend grows
Consumers in South Korea are increasingly health conscious. This has led to manufacturers eliminating unneeded additives, reducing calorie content, and increasing their use of healthy ingredients, such as ginseng or organic fruits and vegetables. Furthermore, manufacturers have also tapped into new niches such as deep sea bottled water. This trend will also encourage the development of more premium products for consumers who are health conscious and willing to pay more to obtain a higher quality and healthier beverage. The health and wellness trend shows no sign of diminishing in the short term.
Manufacturers improve and upgrade product packaging
Manufacturers are diversifying their beverage packaging by developing higher quality packaging, a wider variety of pack sizes and packaging designs. Higher quality packaging is intended to spur interest, especially among consumers looking for premium products. New pack sizes are being developed to meet the specific needs of a wider array of consumers based on gender, age, and tastes/preferences. New packaging design is an increasingly important factor aimed at addressing the needs of consumers leading more active lifestyles and to differentiate brands and products.
Advertising leverages celebrity marketing power
The use of celebrities in soft drink advertisements has proved successful in South Korea, especially for RTD tea products. The use of celebrities has tended to focus on well-known singers and actors/actresses, especially young and beautiful females. This strategy has led manufacturers to spend more money on marketing and increased unit prices. Going forward, it is expected that a wider platform of celebrities will be used, such as athletes and other well-known public figures.
Table of contents
SOFT DRINKS IN SOUTH KOREA : MARKET INSIGHT
EXECUTIVE SUMMARY
Soft drinks grows in volume and value sales terms
The polarisation of the soft drinks consumer base
The health and wellness trend grows
Manufacturers improve and upgrade product packaging
Advertising leverages celebrity marketing power
KEY TRENDS AND DEVELOPMENTS
Soft drinks grows in volume and value sales terms
The polarisation of the soft drinks consumer base
Health and wellness remains the major trend
Manufacturers improve and upgrade product packaging
Advertising leverages celebrity marketing power
MARKET DATA
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2003-2008
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2003-2008
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2003-2008
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2003-2008
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2008
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2008
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2008
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2008
Table 9 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2003-2008
Table 10 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2003-2008
Table 11 Off-trade Sales of Soft Drinks by Sector: Value 2003-2008
Table 12 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2003-2008
Table 13 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2004-2008
Table 14 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2005-2008
Table 15 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2004-2008
Table 16 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2005-2008
Table 17 Company Shares of Off-trade Soft Drinks by Value 2004-2008
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2005-2008
Table 19 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2008
Table 20 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2008-2013
Table 21 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2008-2013
Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2008-2013
Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2008-2013
Table 24 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2008-2013
Table 25 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2008-2013
Table 26 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2008-2013
Table 27 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2008-2013
APPENDIX
Fountain Sales in South Korea
DATA
Table 28 Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2003-2008
Table 29 Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2003-2008
Table 30 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2004-2008
Table 31 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2005-2008
Table 32 Company Shares of Concentrates (RTD) by Off-trade Volume 2004-2008
Table 33 Brand Shares of Concentrates (RTD) by Off-trade Volume 2005-2008
Table 34 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2008-2013
Table 35 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SOUTH KOREA
DONG-A OTSUKA CO LTD - SOFT DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Dong-A Otsuka Co Ltd: Key Facts
Summary 3 Dong-A Otsuka Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Dong-A Otsuka Co Ltd: Competitive Position 2008
HAITAI BEVERAGE CO LTD - SOFT DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Haitai Beverage Co Ltd: Key Facts
Summary 6 Haitai Beverage Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 7 Haitai Beverage Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 8 Haitai Beverage Co Ltd: Competitive Position 2008
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
Summary 11 Lotte Chilsung Beverage Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 12 Lotte Chilsung Beverage Co Ltd: Competitive Position 2008
MAEIL DAIRY INDUSTRY CO LTD - SOFT DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Maeil Dairy Industry Co Ltd: Key Facts
Summary 14 Maeil Dairy Industry Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 15 Maeil Dairy Industry Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 16 Maeil Dairy Industry Co Ltd: Competitive Position 2008
CARBONATES IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 36 Low Calorie Carbonates by Subsector
Table 37 Off-trade Sales of Carbonates by Subsector: Volume 2003-2008
Table 38 Off-trade Sales of Carbonates by Subsector: Value 2003-2008
Table 39 Off-trade Sales of Carbonates by Subsector: % Volume Growth 2003-2008
Table 40 Off-trade Sales of Carbonates by Subsector: % Value Growth 2003-2008
Table 41 On-trade vs Off-trade Sales of Carbonates: Volume 2003-2008
Table 42 On-trade vs Off-trade Sales of Carbonates: Value 2003-2008
Table 43 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2003-2008
Table 44 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2003-2008
Table 45 Company Shares of Carbonates by Off-trade Volume 2004-2008
Table 46 Brand Shares of Carbonates by Off-trade Volume 2005-2008
Table 47 Company Shares of Carbonates by Off-trade Value 2004-2008
Table 48 Brand Shares of Carbonates by Off-trade Value 2005-2008
Table 49 Forecast Off-trade Sales of Carbonates by Subsector: Volume 2008-2013
Table 50 Forecast Off-trade Sales of Carbonates by Subsector: Value 2008-2013
Table 51 Forecast Off-trade Sales of Carbonates by Subsector: % Volume Growth 2008-2013
Table 52 Forecast Off-trade Sales of Carbonates by Subsector: % Value Growth 2008-2013
FRUIT/VEGETABLE JUICE IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 53 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2003-2008
Table 54 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2003-2008
Table 55 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2003-2008
Table 56 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2003-2008
Table 57 Leading Flavours for 100% Juice: % Volume Breakdown 2003-2008
Table 58 Leading Flavours for Nectars (25-99% Juice): % Volume Breakdown 2003-2008
Table 59 Leading Flavours for Juice Drinks (up to 24% Juice): % Volume Breakdown 2003-2008
Table 60 % Share of Smoothies in 100% Juice and Nectars (25-99% Juice): Off-trade Value 2008
Table 61 Chilled Vs Ambient Not From Concentrate 100% Juice: % Analysis 2003-2008
Table 62 Chilled Vs Ambient Reconstituted 100% Juice: % Analysis 2003-2008
Table 63 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2004-2008
Table 64 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2005-2008
Table 65 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2004-2008
Table 66 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2005-2008
Table 67 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2008-2013
Table 68 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2008-2013
Table 69 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2008-2013
Table 70 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2008-2013
BOTTLED WATER IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Institutional Bottled Water Sales
Table 71 Sales of Bottled Water to Institutional Channel 2004-2008 (million litres)
Table 72 Off-trade Sales of Bottled Water: Volume 2003-2008
Table 73 Off-trade Sales of Bottled Water: Value 2003-2008
Table 74 Off-trade Sales of Bottled Water: % Volume Growth 2003-2008
Table 75 Off-trade Sales of Bottled Water: % Value Growth 2003-2008
Table 76 Company Shares of Bottled Water by Off-trade Volume 2004-2008
Table 77 Brand Shares of Bottled Water by Off-trade Volume 2005-2008
Table 78 Company Shares of Bottled Water by Off-trade Value 2004-2008
Table 79 Brand Shares of Bottled Water by Off-trade Value 2005-2008
Table 80 Forecast Off-trade Sales of Bottled Water: Volume 2008-2013
Table 81 Forecast Off-trade Sales of Bottled Water: Value 2008-2013
Table 82 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2008-2013
Table 83 Forecast Off-trade Sales of Bottled Water: % Value Growth 2008-2013
FUNCTIONAL DRINKS IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 84 Still vs Carbonated Functional Drinks % Off-trade Volume 2005-2008
Table 85 Off-trade Sales of Functional Drinks by Subsector: Volume 2003-2008
Table 86 Off-trade Sales of Functional Drinks by Subsector: Value 2003-2008
Table 87 Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2003-2008
Table 88 Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2003-2008
Table 89 Company Shares of Functional Drinks by Off-trade Volume 2004-2008
Table 90 Brand Shares of Functional Drinks by Off-trade Volume 2005-2008
Table 91 Company Shares of Functional Drinks by Off-trade Value 2004-2008
Table 92 Brand Shares of Functional Drinks by Off-trade Value 2005-2008
Table 93 Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2008-2013
Table 94 Forecast Off-trade Sales of Functional Drinks by Subsector: Value 2008-2013
Table 95 Forecast Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2008-2013
Table 96 Forecast Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2008-2013
CONCENTRATES IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Concentrates Conversions
Table 97 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format
Table 98 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2003-2008
Table 99 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2003-2008
Table 100 Off-trade Sales of Concentrates by Subsector: Value 2003-2008
Table 101 Off-trade Sales of Concentrates by Subsector: % Value Growth 2003-2008
Table 102 Company Shares of Concentrates by Off-trade Value 2004-2008
Table 103 Brand Shares of Concentrates by Off-trade Value 2005-2008
Table 104 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2008-2013
Table 105 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2008-2013
Table 106 Forecast Off-trade Sales of Concentrates by Subsector: Value 2008-2013
Table 107 Forecast Off-trade Sales of Concentrates by Subsector: % Value Growth 2008-2013
RTD TEA IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 108 Off-trade Sales of RTD Tea by Subsector: Volume 2003-2008
Table 109 Off-trade Sales of RTD Tea by Subsector: Value 2003-2008
Table 110 Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2003-2008
Table 111 Off-trade Sales of RTD Tea by Subsector: % Value Growth 2003-2008
Table 112 Leading Flavours for RTD Tea: % Volume Breakdown 2005-2008
Table 113 Company Shares of RTD Tea by Off-trade Volume 2004-2008
Table 114 Brand Shares of RTD Tea by Off-trade Volume 2005-2008
Table 115 Company Shares of RTD Tea by Off-trade Value 2004-2008
Table 116 Brand Shares of RTD Tea by Off-trade Value 2005-2008
Table 117 Forecast Off-trade Sales of RTD Tea by Subsector: Volume 2008-2013
Table 118 Forecast Off-trade Sales of RTD Tea by Subsector: Value 2008-2013
Table 119 Forecast Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2008-2013
Table 120 Forecast Off-trade Sales of RTD Tea by Subsector: % Value Growth 2008-2013
RTD COFFEE IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 121 Off-trade Sales of RTD Coffee: Volume 2003-2008
Table 122 Off-trade Sales of RTD Coffee: Value 2003-2008
Table 123 Off-trade Sales of RTD Coffee: % Volume Growth 2003-2008
Table 124 Off-trade Sales of RTD Coffee: % Value Growth 2003-2008
Table 125 Company Shares of RTD Coffee by Off-trade Volume 2004-2008
Table 126 Brand Shares of RTD Coffee by Off-trade Volume 2005-2008
Table 127 Company Shares of RTD Coffee by Off-trade Value 2004-2008
Table 128 Brand Shares of RTD Coffee by Off-trade Value 2005-2008
Table 129 Forecast Off-trade Sales of RTD Coffee: Volume 2008-2013
Table 130 Forecast Off-trade Sales of RTD Coffee: Value 2008-2013
Table 131 Forecast Off-trade Sales of RTD Coffee: % Volume Growth 2008-2013
Table 132 Forecast Off-trade Sales of RTD Coffee: % Value Growth 2008-2013
ASIAN SPECIALITY DRINKS IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 133 Off-trade Sales of Asian Speciality Drinks by Subsector: Volume 2003-2008
Table 134 Off-trade Sales of Asian Speciality Drinks by Subsector: Value 2003-2008
Table 135 Off-trade Sales of Asian Speciality Drinks by Subsector: % Volume Growth 2003-2008
Table 136 Off-trade Sales of Asian Speciality Drinks by Subsector: % Value Growth 2003-2008
Table 137 Company Shares of Asian Speciality Drinks by Off-trade Volume 2004-2008
Table 138 Brand Shares of Asian Speciality Drinks by Off-trade Volume 2005-2008
Table 139 Company Shares of Asian Speciality Drinks by Off-trade Value 2004-2008
Table 140 Brand Shares of Asian Speciality Drinks by Off-trade Value 2005-2008
Table 141 Forecast Off-trade Sales of Asian Speciality Drinks by Subsector: Volume 2008-2013
Table 142 Forecast Off-trade Sales of Asian Speciality Drinks by Subsector: Value 2008-2013
Table 143 Forecast Off-trade Sales of Asian Speciality Drinks by Subsector: % Volume Growth 2008-2013
Table 144 Forecast Off-trade Sales of Asian Speciality Drinks by Subsector: % Value Growth 2008-2013