OB Beer 'Cass Fresh' Tops Convenience Store Market Share at 32% This Year

OB Beer’s ‘Cass’ has emerged as the most sought-after beer brand in the convenience store market.

According to the ‘Alcohol Consumption Trend Report 2023’ released by Open Survey on the 20th, OB Beer’s 'Cass Fresh' ranked first in the convenience store beer market with a market share of 32.2% as of cumulative data in May this year. This is 2.8 times higher than the market share of the second-place brand and represents a 3.4 percentage point increase compared to 28.8% in 2019, before the COVID-19 pandemic.

During the same period, in the home market including convenience stores and supermarkets, Cass Fresh held the top spot with a market share of 42.4%. Cass Fresh has maintained the number one position in the domestic market for over 10 years. Its market share was 41.3% in 2019, and it slightly declined to 39.5% and 38.6% in 2020 and 2021 respectively, during the spread of COVID-19. However, the market share recovered to 41.3% last year and rose to 42.4% as of May this year.

Following the spread of home drinking and solo drinking trends during the COVID-19 pandemic, the number of ‘home drinking enthusiasts’ who enjoy alcohol at reasonable prices at home has been steadily increasing due to high inflation. As home drinking culture firmly establishes itself as a key part of alcohol consumption culture, the importance of home market sales channels continues to expand.

The alcohol market is broadly divided into the entertainment market, including restaurants and bars, and the home market, centered on convenience stores, large supermarkets, and independent grocery stores. Among these, convenience stores hold the largest share in the home market. Thanks to their excellent accessibility, convenience stores have rapidly emerged as a core sales channel in the home market during the pandemic.

According to market research firm Nielsen Korea, the share of convenience stores in the home beer market was 30.4% in 2017, ranking second after independent grocery stores (38.3%). However, by 2019, convenience stores surpassed independent grocery stores with a 35.9% share compared to 33.5%. After the outbreak of COVID-19, the sales share increased to 41.6% in 2021. As of cumulative data in May this year, convenience stores held the highest share at 37.7%, followed by independent grocery stores (26.5%) and discount stores (17.9%).

In fact, last year, the alcohol sales of the four major convenience store chains?CU, GS25, 7-Eleven, and Emart24?increased by an average of 20.5% compared to 2021. In response, the convenience store industry is focusing more on strengthening the alcohol category by expanding their alcohol lineup targeting home drinking enthusiasts and hosting various events.

An industry insider said, “As we enter the peak summer season and competition in the alcohol market intensifies, we are paying attention to the performance of convenience stores, which have established themselves as a key channel for alcohol purchases,” adding, “Ultimately, expanding convenience store market share based on changing consumer consumption patterns is expected to play a crucial role in the overall market share competition.”