Popularity of Gompyo and Malpyo Beer... Convenience Store Craft Beer Sales Share Surpasses 10%

Craft Beer Fills Void as Imported Beer’s ‘Three-Year Reign’ Ends
Major Breweries’ Beer Sales Up 26% Year-on-Year
Craft Beer Sales Soar 546%

[Asia Economy Reporter Cha Min-young] The craft beer segment is rapidly growing in the domestic convenience store beer market.

According to convenience store CU on the 29th, on the 28th, for the first time in the convenience store industry, the sales proportion of craft beer surpassed 10% of domestic beer sales. It has been about three years since craft beer appeared in convenience stores.

The convenience store beer market had seen imported beer surpass domestic beer sales for the first time in 2017, with imported beer taking up to 60% of the total market share. At that time, craft beer accounted for only 1.9% of the roughly 40% domestic beer sales.

However, imported beer sales have been declining since last year when the boycott of Japanese products began. This is because sales of Japanese beer, which made up the majority of imported beer sales, sharply dropped.

Instead of imported beer, domestic craft beer was chosen by the 'Pyeonmaekjok' (convenience store beer drinkers). The younger generation, who prefer distinct beer flavors and aromas, turned their attention from large manufacturers' beers to craft beers from small-scale breweries.

In fact, CU's craft beer sales growth rate surged starting in July last year when the boycott began, increasing by 241.5% compared to the same period the previous year until the end of last year. Last month, for the first time in the industry, craft beer (Malpyo Black Beer) surpassed major manufacturers' products such as OB Beer and Tsingtao Beer, as well as imported beers, ranking 4th in beer sales.

The spread of home drinking and home party culture also contributed to the popularity of craft beer.

Large manufacturers' beers tended to be consumed as "Tesla (Terra + Chamisul)" or "Kascheoreom (Cass + Cheoeumcheoreom)" soju-beer bombs, but recently, as gatherings and drinking parties where bomb shots were consumed have disappeared, craft beers with unique tastes and aromas have been gaining strength.

According to CU, from January to October this year, sales of large manufacturers' domestic beers grew by 26.5% compared to last year, while domestic craft beer sales jumped by 546.0%. The proportion of craft beer in total beer sales also rose to 6%.

In response to the changing landscape of the beer market, the industry is focusing on growing craft beer.

As of November, CU sells about 20 types of craft beer, the largest in the industry, and offers 15 of these products exclusively. Notably, this year’s releases, Gompyomil Beer and Malpyo Black Beer, surpassed one million units in cumulative sales in a short period despite limited production volumes.

Furthermore, on the 12th of this month, CU partnered with Brewery Playground to exclusively launch 'Super Swing Lager' and 'Big Slide IPA' for the first time in the industry. Super Swing Lager is the first India Pale Lager (IPL) released in convenience stores, featuring a unique tangerine aroma and refreshing taste, while Big Slide IPA is characterized by tropical fruit notes and a smooth finish.

Lee Seung-taek, MD of the Beverage and Food Team at BGF Retail, said, "Craft beers with distinctive tastes and aromas have captured the convenience store beer drinkers who have moved away from imported beers, enjoying popularity comparable to large manufacturers' products. We will continue to introduce fresh flavors and interesting concept products to customers by combining the high-quality craft beers from domestic breweries with CU’s product planning capabilities and know-how."