Hard Seltzer - South Korea

The Hard Seltzer market in South Korea has been experiencing significant growth in recent years.

Customer preferences: South Korean consumers have shown a growing interest in healthier beverage options, which has contributed to the rise in popularity of Hard Seltzers. With an increasing focus on health and wellness, consumers are seeking beverages that are low in calories and sugar. Hard Seltzers, which are typically low in both, have emerged as a favored choice among health-conscious consumers. Additionally, the younger demographic in South Korea has shown a preference for alcoholic beverages that are light and refreshing, making Hard Seltzers an appealing option.

Trends in the market: One of the key trends in the South Korean Hard Seltzer market is the introduction of local flavors. While international brands initially dominated the market with their traditional flavors, local players have started to introduce unique and indigenous flavors that cater to the preferences of South Korean consumers. This localization strategy has helped these brands gain a competitive edge and attract a larger customer base. Another trend in the market is the increasing availability of Hard Seltzers in different retail channels. Initially, Hard Seltzers were primarily available in specialty liquor stores or bars. However, as the demand for these beverages has grown, they can now be found in mainstream supermarkets and convenience stores. This increased accessibility has made it easier for consumers to purchase and enjoy Hard Seltzers, further fueling market growth.

Local special circumstances: South Korea has a strong drinking culture, with alcohol being an integral part of social gatherings and celebrations. However, there is a growing trend among young consumers to seek alternatives to traditional alcoholic beverages. Hard Seltzers, with their lower alcohol content and lighter taste profile, have emerged as a popular choice for those looking for a refreshing and less intoxicating option. This shift in consumer preferences has created a favorable environment for the growth of the Hard Seltzer market in South Korea.

Underlying macroeconomic factors: South Korea has a strong economy and a growing middle class, which has led to increased disposable income among consumers. This rise in purchasing power has allowed consumers to explore and experiment with new products, including Hard Seltzers. Additionally, the influence of global trends, particularly from the United States where the Hard Seltzer market has experienced explosive growth, has also played a role in the development of the market in South Korea. In conclusion, the Hard Seltzer market in South Korea is experiencing significant growth due to shifting customer preferences towards healthier and lighter alcoholic beverages, the introduction of local flavors, increased availability in retail channels, the desire for alternatives to traditional alcoholic beverages, and favorable macroeconomic factors. As the market continues to evolve, it will be interesting to see how both local and international players adapt to meet the changing demands of South Korean consumers.

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.