GS25 Non-Alcoholic Beer Sales Up 795.7%
Key Consumer Groups: '20s & 30s Generations' and 'Women'
Market Size Expected to Reach 200 Billion KRW by 2025
[Asia Economy Reporter Lim Chun-han] Recently, non-alcoholic beer has been gaining popularity among the MZ generation (Millennials + Generation Z). Coupled with the ‘home drinking’ trend of enjoying drinks simply at home, the non-alcoholic beer market, once considered a niche, is growing. Convenience stores are actively targeting consumers by expanding their non-alcoholic beer selections.
According to CU on the 18th, sales of non-alcoholic beer from January 1 to the 14th of this month increased by 459.1% compared to the same period last year. During the same period, GS25 saw a 795.7% increase, Seven Eleven 501.3%, and Emart24 187%. Notably, women purchased more non-alcoholic beer than men. At CU and GS25, the sales ratio by gender was 6 (female) to 4 (male), and at Seven Eleven, women accounted for 70.9%, overwhelmingly higher than men at 29.1%.
The core consumer group for non-alcoholic beer was people in their 20s and 30s. At CU, sales by age group were 53.2% for those in their 20s, 34.2% for those in their 30s, and 12.6% for those in their 40s. At GS25, the order was 30s at 37.8%, 20s at 25.0%, and 40s at 23.9%. At Seven Eleven, the sales growth rate for non-alcoholic beer was 572.4% for those in their 20s and 497.2% for those in their 30s and 40s. By commercial district, high demand was seen in single-person household areas. At Seven Eleven, non-alcoholic beer sales in single-person household districts increased by 560.3% year-on-year, and at Emart24 by 210%.
Convenience stores are expanding their product lines as they expect more consumers to seek non-alcoholic beer. The number of non-alcoholic beer products sold at CU increased from 2 last year to 5 this year. GS25 (from 5 to 7), Seven Eleven (from 3 to 7), and Emart24 (from 1 to 5) also increased their product counts compared to the previous year.
Non-alcoholic beer can also be ordered online after adult verification. Although contactless consumption has increased since COVID-19, alcohol purchases required visiting offline stores, which was inconvenient. As an alternative, non-alcoholic beer, which offers a taste similar to beer and allows consumers to enjoy the mood, has emerged. In fact, on 11st, non-alcoholic beer sales increased by 79% from January 1 to the 15th of this year compared to last year, and on Gmarket, sales rose by 73%.
The domestic non-alcoholic beer market size is estimated at about 20 billion KRW. Although it currently accounts for less than 1% of the total beer retail market size (about 3 trillion KRW), its growth rate is steep. The global non-alcoholic beverage market is expected to grow at an average annual rate of 23% until 2024. Industry insiders predict that the domestic market size will also grow to 200 billion KRW by 2025.
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