"Hating the Same Beer" Expanding Territory with Diversity and Accessibility [Craft Beer Economics②]

Last Year, Craft Beer Market Share at 4.9%... 7 Times Growth in 5 Years
35.4% Responded to Increased Craft Beer Consumption
Diversity and Originality Align with Value Consumption Trends
Growth Accelerated by Sales through Accessible Convenience Store Channels

[Asia Economy Reporter Eunmo Koo] “Like sparrows visiting a mill, I keep peeking in out of curiosity to see if there’s anything new.” A man in his 30s, Mr. A, has recently been stopping by convenience stores or large supermarkets near his home on his way back from work more frequently. It’s to check if there are any new beers available. He said, “Craft beer styles in Korea have become very diverse, so it’s quite enjoyable to choose and drink according to my mood or the weather each day.”

Craft beer is expanding its presence in the domestic beer market by emphasizing diversity. Consumers are responding to the various styles that clearly reflect the unique characteristics of each brewery. Especially with the improved accessibility at convenience stores, it has become easier to purchase craft beer, accelerating its territorial expansion.

According to the Korea Craft Beer Association on the 17th, the market share of craft beer in the domestic beer market last year was 4.92%. The domestic craft beer market share, which was only 0.69% in 2016, steadily increased to 1.40% in 2018 and 3.55% in 2020, and last year rose to 4.92%, expanding about sevenfold over five years.

Trends in Domestic Craft Beer Market Share (Source: Korea Craft Beer Association)

This trend was also evident in a survey examining changes in craft beer consumption. According to a survey conducted by Global Research last year targeting 1,000 adult men and women, 35.4% responded that their craft beer consumption had increased compared to the past, which was higher than the 21.6% who said it had decreased, indicating continuous growth in the market.

Sales have also increased. Last year, domestic craft beer sales amounted to 152 billion KRW, nearly a 30% increase from 118 billion KRW the previous year. Domestic craft beer sales were only 16.4 billion KRW in 2014 but doubled to 31.1 billion KRW in 2016, then steadily grew to 43.3 billion KRW in 2017, 63.3 billion KRW in 2018, and 80 billion KRW in 2019.

The domestic craft beer market is accelerating its growth by aligning the spirit of craft beer?which prioritizes diversity and originality?with the value consumption trend that emphasizes individuality and satisfaction. Craft beer differentiates itself from the light lagers of large liquor companies, which emphasize lightness and cleanliness, by freely using various ingredients such as malt, hops, yeast, as well as fruits and herbs, and growing through diverse styles.

Ten years ago, the domestic beer market was a monotonous market dominated by a few large liquor companies producing mainly pale and light lagers. However, since the 2010s, as foreign craft beers began to be imported into Korea, demand for beers different from those traditionally consumed started to emerge. The industry responded by introducing various products to suit consumers’ tastes seeking unique flavors and aromas, shaping the current market landscape.

Moreover, the growth rate of the craft beer market has accelerated further as craft beers became available through highly accessible convenience store channels. Since the revision of the Liquor Tax Act Enforcement Decree in 2018 allowed small-scale beer retail distribution, craft beer has entered convenience stores, a channel with excellent accessibility, transforming from a product exclusive to “maekdeok” (beer enthusiasts) into one that general consumers can also enjoy.

Over the past three years, craft beer sales in convenience stores have maintained triple-digit growth rates. According to CU, the growth rate of craft beer sales increased by 220.4% in 2019 compared to the previous year, surged to 498.4% in 2020, and continued strongly at 255.2% last year. During the same period, GS25 recorded high sales growth rates of 234.1% in 2019, 381.4% in 2020, and 353.4% in 2021. The number of product varieties has also increased. At 7-Eleven, the number of craft beer items rose from just 12 in 2019 to 26 in 2020, and jumped to 42 last year. GS25 also increased from 12 varieties in 2018 to over 60 now, more than fivefold.

Convenience stores are driving craft beer growth by combining excellent accessibility and the price incentive of “4 cans for 10,000 KRW” with consumer demand to enjoy unique and distinctive flavors even when drinking just one can. A GS25 official said, “Even when enjoying convenience store beer, the trend of seeking special tastes and designs is expanding, which is interpreted as a reason why craft beer is particularly popular.”