[2025 Alcohol Market] ② 100 Million Dollar Export Mark for 2 Consecutive Years... K-Soju Starts Global Takeoff

The Value of Soju Exports Surpasses 100 Million Dollars for Two Consecutive Years
Japan Remains the Largest Export Market, but Growth Slows in Korea
HiteJinro and Other Manufacturers Intensify Focus on Overseas Markets

Last year, South Korea's soju export value surpassed 100 million dollars for the second consecutive year. As the popularity of K-pop and K-dramas continues to expand, interest in soju is growing, fueled by demand from Korean content. Unlike the domestic market, where growth has slowed due to prolonged sluggishness in domestic consumption, the popularity of soju in overseas markets is steadily increasing, leading manufacturers to intensify their efforts to target foreign markets.

A view of the HiteJinro booth installed at the music festival 'All Point East Festival (APEF)' held last year at Victoria Park in London, UK.

The Popularity of K-Content Gives Wings to Soju's Global Market Expansion

According to customs export-import trade statistics on the 24th, last year's soju export value was $104.51 million (approximately 150 billion KRW), marking a 3.1% increase from the previous year and surpassing 100 million dollars for two consecutive years. Soju export values showed a declining trend from $97.57 million in 2018 to $89.74 million in 2019, $85.59 million in 2020, and $82.42 million in 2021.

However, in 2022, exports rebounded to $93.33 million, and in 2023, they reached $101.41 million, exceeding 100 million dollars for the first time in a decade. Export volume also increased. Last year, soju export volume was 70,062 tons, a 2.3% increase compared to the previous year.

By country, Japan ranked first with $30.14 million (approximately 43 billion KRW). Although Japan has remained the largest export destination for soju for several years, the export value has gradually decreased each year. Japan's export value was $40.64 million in 2020, $35.67 million in 2022, and $30.83 million in 2023, showing a slight decrease last year as well, shrinking by 25.8% over four years. In contrast, exports to the United States, ranked second, have shown rapid growth. The U.S. export value was $13.04 million in 2021 and nearly doubled to $24.97 million (approximately 36 billion KRW) last year over the past three years.

Following Japan and the U.S., the order was China ($12.27 million), Vietnam ($6.83 million), the Philippines ($4.68 million), Taiwan ($2.63 million), Thailand ($2.01 million), Hong Kong ($1.93 million), and Malaysia ($1.81 million). Most of the top export destinations are Asian countries, with Australia ranking within the top 10 at $1.76 million (approximately 2.5 billion KRW) as a Western country.

The continuous increase in soju export scale is rooted in the changed status of Korean content. As K-pop and K-dramas gain global popularity, demand for Korean cuisine has increased, benefiting soju as well. Especially at the end of last year, Ros?, a former member of the girl group BLACKPINK, collaborated with American pop star Bruno Mars on the song "Apartment (APT.)," which created a global sensation, boosting the global expansion of soju alongside Korean drinking culture games.

Sharp Contrast Between Domestic and Overseas Markets... Overseas Market Expansion Expected to Accelerate

Unlike the growing presence in overseas markets, the domestic market atmosphere remains somewhat lukewarm. HiteJinro, the industry leader, recorded domestic soju sales of 970.1 billion KRW as of the third quarter last year, a 6.2% increase from 914.5 billion KRW in the same period the previous year. Although this is an improvement compared to the negative growth recorded in 2023, the sluggish growth in the domestic market has kept total soju business sales stuck at around 1.1 to 1.2 trillion KRW for several years. Lotte Chilsung Beverage has been growing since launching the zero-sugar soju "Saero" in 2022, but overall sales volume still leaves room for improvement.

The domestic soju market has gradually contracted since the COVID-19 pandemic, as the Korean alcoholic beverage market diversified from being soju-centric to including wine, whiskey, and recently highballs. According to the National Tax Service, the domestic diluted soju shipment volume has steadily decreased from 915,596 kiloliters in 2019 to 844,250 kiloliters in 2023.

Additionally, growing health concerns have led to a decline in alcohol consumption, posing an obstacle to market expansion. Furthermore, last year, political instability due to emergency measures at the end of the year and incidents such as the Jeju Air passenger plane accident further dampened consumer sentiment, creating a challenging environment for market growth.

As domestic and overseas markets show contrasting trends, soju manufacturers are accelerating their moves to target overseas markets. HiteJinro plans to start construction of its first overseas factory in Vietnam in the first quarter of this year to meet growing overseas demand. The Vietnam factory, to be established on approximately 82,644 square meters (about 25,000 pyeong) in the Green I-Park Industrial Complex in Thai Binh Province, aims for completion next year, with an initial production target of 1 million cases annually. HiteJinro expects the new production facility to serve as a hub for the Southeast Asian market.

Lotte Chilsung is also expected to focus on soju exports this year. Beyond the popular fruit soju "Chum Churum Soonhari," exports and local marketing of regular soju brands like "Chum Churum" and "Saero" will be strengthened. The Saero brand, in particular, is Lotte Chilsung's key product for targeting the European market. Since May last year, exports to France, Germany, and the Netherlands have begun, and exports of the fruit-flavored soju "Saero Apricot" have been actively promoted since the second half of the year. The zero-sugar feature of Saero aligns well with the global wellness trend, raising expectations.

Additionally, this year, OB Beer, the leading domestic beer company, is expected to enter the soju market. OB Beer, which has focused on the beer business, acquired Jeju Soju, operated by Shinsegae L&B, last year and completed the merger in December. Currently, the company is reorganizing its structure post-acquisition and has not announced specific business plans. Since Jeju Soju has focused on exports, OB Beer plans to prioritize overseas business and develop its soju operations accordingly.