NEWS
S. KOREAN CONSUMERS TURN TO DOMESTIC BEERS AND DUMP WINES AS INFLATION BITES
By Tony Zhu
11-11-2024
Source: Seoul Inspired
South Korean domestic beer is poised to reclaim its position as the best-selling alcoholic beverage at major retailers this year, overtaking wine as consumers adapt to persistent inflation, Yonhap news agency reported quoting recent market data.
An analysis by Emart, one of South Korea’s largest retailers, shows that through 6 November, domestic beer accounted for 25 percent of alcohol sales, surpassing wine at 22.3 percent.
This marks a reversal from last year when wine narrowly led with 23.9 percent of sales compared to domestic beer’s 23.5 percent.
The shift in consumer preferences is reflected in the year-over-year changes, with wine’s market share declining by 1.7 percent points while domestic beer increased by 1.5 percent points.
Following these two categories, western spirits, including whisky, captured 16.6 percent of sales, while soju claimed 16.3 percent, and imported beer accounted for 13.4 percent.
Lotte Mart, another major retailer, reported similar trends, with domestic beer outperforming wine for the first time since 2020 during the January-October period.
Industry analysts attribute this shift to inflation-conscious consumer behaviour. “Young consumers with diminished purchasing power are turning away from expensive wines in favour of beer, which offers both lower prices and alcohol content,” an industry representative told Yonhap.
The trend is also evident in wine import data. According to customs statistics, wine imports peaked at 76,575 tons in 2021 before declining to 71,020 tons in 2022 and 56,542 tons in 2023.
The downward trajectory has continued into 2024, with imports from January through September falling 11.6 percent to 37,893 tons compared to 42,846 tons during the same period last year.
A notable development in the beer market is the rising popularity of non-alcoholic alternatives, reflecting a broader “healthy pleasure” trend.
E-mart reported a 12.2 percent increase in non-alcoholic beer sales through 6 November compared to the same period last year, with market share growing from 0.7 percent to 0.8 percent.
The category ranks sixth in overall alcohol sales, following domestic beer, wine, western spirits, soju, imported beer, and traditional Korean liquors.
Lotte Mart witnessed an even more dramatic surge, with non-alcoholic beer sales jumping 40 percent in the first ten months of the year. A Lotte Mart spokesperson attributed this growth to “a combination of factors, including declining alcohol consumption among younger generations, changing drinking culture that’s moving away from pressure to drink, and increasing health consciousness.
(the writer can be contacted at: info@thewinechronicle.com)
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