Samil PwC, "Domestic Beverage Market Accelerates Growth with Wellness and Functional Trends"

Domestic Beverage Market Growth Continues
Functional Products Gain Attention Post-Pandemic
Growth Potential of K-Beverages in the Global Market

Samil PwC announced on the 27th that the domestic beverage market has entered a new growth phase, driven by wellness and functional trends following the pandemic. In particular, as K-beverages are gaining attention in the global market alongside K-food, the need for product development tailored to global consumer preferences was emphasized.

According to the report "K-Beverages, Zero or More"* released by Samil PwC, the domestic beverage manufacturing industry accounts for about 12.5% of the total food manufacturing industry based on production value in 2023, recording an average annual growth rate of 5.5% over the past five years. The beverage market size in 2023 was estimated at approximately 11 trillion KRW. Especially, the expansion of the health and functional beverage market has been remarkable since the pandemic, showing a high growth rate of 11.6% in 2021 compared to the previous year, and maintaining a stable growth rate in the 7% range thereafter.

Samil PwC summarized the trends in the domestic beverage market as "3 Nos (無) and 3 Haves (有)." The 3 Nos (無) are zero-calorie, decaffeinated, and non-alcoholic beverages. The 3 Haves (有) are functionality and premiumization, channel and product diversification, and eco-friendliness. Since the implementation of the "General Food Functionality Labeling System," various products such as relaxation drinks, protein beverages, and diet drinks have been launched, activating the functional beverage market. Additionally, as coffee consumption decreases and tea consumption increases, RTD (Ready-To-Drink) forms of black tea and milk-mixed beverages are gaining attention.

Along with K-food, K-beverages are also gaining popularity in overseas markets. A representative example is the carbonated drink Milkis, which ranked first in the Russian oil-producing beverage market, proving its potential in the global market. Nak-Yeol Jeong, Consumer Goods Industry Leader at Samil PwC, emphasized, "As food and beverage exports are in full swing, the beverage market must also enhance growth potential through product development that aligns with global trends and tastes."

Detailed information on the "K-Beverages, Zero or More" report can be found on the Samil PwC website.