Beer - South Korea

The Beer market in South Korea has been experiencing significant growth in recent years. Customer preferences have shifted towards craft beers and imported beers, leading to an increase in the variety of beers available in the market. The growing popularity of beer festivals and the influence of social media have also contributed to the growth of the market.

Customer preferences: South Korean consumers have developed a taste for craft beers and imported beers. Craft beers are known for their unique flavors and high-quality ingredients, which appeal to consumers who are looking for something different from mainstream beers. Imported beers, on the other hand, offer a taste of international flavors and are seen as a status symbol among consumers. As a result, there has been a rise in the number of craft breweries and beer importers in the country.

Trends in the market: One of the major trends in the South Korean beer market is the growing popularity of beer festivals. These festivals provide an opportunity for consumers to sample a wide variety of beers from different breweries. They also serve as a platform for craft breweries to showcase their products and gain exposure. Beer festivals have become a social event, attracting not only beer enthusiasts but also casual drinkers who are looking for a unique experience. Another trend in the market is the influence of social media. Beer enthusiasts and influencers often share their experiences and recommendations on platforms such as Instagram and YouTube. This has created a buzz around certain brands and beers, leading to increased demand. Breweries and beer importers have also started using social media to promote their products and engage with consumers.

Local special circumstances: South Korea has a strong drinking culture, with beer being one of the most popular alcoholic beverages. It is often consumed during social gatherings and meals, making it an integral part of the local culture. This cultural preference for beer has contributed to the growth of the market.

Underlying macroeconomic factors: The South Korean economy has been growing steadily, leading to an increase in disposable income. This has allowed consumers to spend more on leisure activities, including drinking beer. In addition, the government has implemented policies to promote the food and beverage industry, which has created a favorable environment for the beer market to thrive. In conclusion, the Beer market in South Korea is experiencing growth due to customer preferences for craft beers and imported beers, the popularity of beer festivals, the influence of social media, the local drinking culture, and the underlying macroeconomic factors. As these trends continue to shape the market, it is expected that the beer market in South Korea will continue to expand in the coming years.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.