[2025 Alcohol Market]④ Returned to the Second Golden Age... Japanese Beer Revived as 'No Japan' Calms Down

Invasion of Wine and Whiskey...
Domestic Beer Imports Decline for Six Consecutive Years
Japanese Beer "Smiles Alone"...
Import Volume Surges 25%
Imports from Beer Homeland Countries Plummet...
U.S. Up 35%
Expectations for Domestic Beer "New Product" Effect

Last year, the domestic beer market in South Korea experienced a stagnant year amid an increasingly diverse wave of alcoholic beverage types. However, in the imported beer market, while the overall trend continued downward, only Japanese beer maintained a strong growth trajectory. Domestic manufacturers, who focused on portfolio expansion last year, are expected to strengthen their competitiveness this year through product revamps and expanding their lineup of non-alcoholic products.

Invasion of Wine and Whiskey... Domestic Beer Imports Decline for Six Consecutive Years

According to customs export-import trade statistics on the 30th, the volume of imported beer in South Korea last year was 225,282 tons, a 5.6% decrease from the previous year (238,696 tons). The volume of beer imports, which reached 387,981 tons in 2018, has been shrinking every year since then, continuously declining. Last year's import volume was the lowest in eight years since 2016 (220,508 tons).

As the import volume decreased, the import value also continued to decline. Last year, the import value of beer in South Korea was $205.27 million (approximately 295 billion KRW), down 5.9% from the previous year ($218.22 million). Similar to the import volume, the import value has not rebounded since peaking at $309.68 million (approximately 445 billion KRW) in 2018 and has been on a downward trend.

The sluggish trend in the imported beer market over several years is rooted in the rapid diversification of alcoholic beverage types in recent years. In the past, beer was considered the hallmark of imported alcoholic beverages and enjoyed strong demand and high popularity. However, since the COVID-19 pandemic, a flood of various types of alcoholic beverages has entered the market, diluting beer's popularity.

In fact, beer has lost its title as the flagship imported alcoholic beverage, falling behind wine and whiskey in terms of import value. Recently, the spread of highball?a strong competitor and direct substitute?has further contracted the beer market.

Japanese Beer 'Smiles Alone'... Import Volume Surges 25%

While the imported beer market remains stagnant, Japan was the only country to see growth last year. The import volume of Japanese beer last year was 84,060 tons, a 25.7% increase from the previous year. The import value also rose 21.5% to $67.45 million (approximately 97 billion KRW). Japanese beer reached its peak import volume (86,676 tons) and import value ($78.3 million) in 2018, but the following year, due to export restrictions imposed by the Japanese government on South Korea, a boycott movement against Japanese products spread, causing the import value to plummet to $5.67 million (approximately 800 million KRW) in 2020.

However, as time passed and the 'No Japan' sentiment subsided, imports and sales began to recover, and last year, Japanese beer effectively regained pre-boycott levels, enjoying a second heyday.

As demand for Japanese beer revived, the performance of companies leading this resurgence also improved significantly. Notably, Lotte Asahi Liquor boosted its sales to 138.6 billion KRW in 2023, a 330.4% increase from the previous year (32.2 billion KRW), thanks to the hit product 'Asahi Super Dry Draft Beer Can.' Operating profit also soared to 42 billion KRW, about 12 times the previous year's 3.5 billion KRW, marking an all-time high. Last year, the company continued aggressive marketing by expanding import volumes and launching new products such as 'Asahi Shokusai,' so even better results are expected in 2024.

A representative from Lotte Asahi Liquor commented, "The geographical proximity allows for quick production and consumption, and consumers already have ample experience with high-quality Japanese beer from trips to Japan, which contributes to the positive reception of Japanese beer in the domestic market." They added, "Although the diversification of tastes means the imported beer market is unlikely to grow significantly in the future, consumers accurately assess product value, so consumption of high-value, high-quality products is expected to maintain current levels. We plan to continue enhancing product value and quality to respond to consumption diversification and the trend toward low-alcohol beverages."

Imports from Beer Homeland Countries Plummet... U.S. Up 35%

Except for Japan, most countries saw a reduction in import volumes. The Netherlands, the origin of 'Heineken,' ranked second after Japan, but its import value shrank by 35.0% compared to three years ago, showing a sluggish performance with $28.23 million.

However, the United States saw its import value rise 35.1% year-on-year to $22.89 million last year, surpassing China to rank third. Other countries in the top ten included China ($18.11 million), Poland ($11.6 million), Ireland ($11.58 million), the Czech Republic ($11.35 million), Germany ($10.1 million), Vietnam ($6.18 million), and Belgium ($2.89 million).

Vietnamese beer imports have attracted attention with a roughly 20-fold increase over the past three years, while imports of beer from traditional beer homeland countries like Germany and Belgium have sharply declined. Notably, Belgium's beer import value dropped from $27.62 million (approximately 4 billion KRW) in 2021 to $2.89 million (approximately 410 million KRW) last year, falling to one-tenth in three years and barely making the top ten.

Expectations for Domestic Beer 'New Product' Effect

Meanwhile, domestic beer companies also failed to achieve a significant rebound last year due to sluggish consumption. Although the performance of the three major beer companies has not yet been announced, as of the third quarter of last year, HiteJinro, which produces 'Terra' and 'Kelly,' recorded beer business sales of 640.4 billion KRW, a 2.3% increase from 626.3 billion KRW in the same period the previous year. During the same period, Lotte Chilsung Beverage, owner of 'Cloud' and 'Crush,' sold 70.8 billion KRW worth of products, a 12.7% increase from 62.8 billion KRW in the previous year.

Last year, the domestic beer market saw the three major companies focus on expanding their market size through portfolio expansion of existing popular products and new product launches. This year, manufacturers are expected to pursue market share growth through product renewals, non-alcoholic versions, and dual-track strategies for flagship brands.

In fact, OB Beer strengthened its lineup by launching 'Hanmac Extra Creamy Draft' and renewing 'Cass Light,' while HiteJinro introduced 'Terra Light' last summer. Lotte Chilsung also enhanced market competitiveness with a major renewal of Cloud and the launch of 'Cloud Non-Alcoholic' early this year. An industry insider said, "The non-alcoholic category, which grew significantly last year, is just beginning to attract attention domestically, so it is seen as a key trend with expected continuous growth in the future."