[Exclusive] "Cass" Dominates: One Out of Every Two Beers Is Cass, Overtaking the Hite Trio

Cass Leads AB InBev to 52.1% Market Share in Korean Beer Market Last Year
HiteJinro Drops from 41.6% to 33.5%, Falling to Second Place
Lotte Chilsung Stays at 3%... Crush Sells Less Than Asahi

Last year, one out of every two beers sold in South Korea was OB Beer's "Cass." Thanks to the strong performance of Cass, AB InBev, the parent company of OB Beer, surpassed HiteJinro to become the top company in the domestic beer market in terms of market share.

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According to global alcoholic beverage market analysis firm IWSR on July 29, AB InBev recorded a 52.1% market share in the domestic beer market last year. This represents an increase of 11.0 percentage points from 41.1% a year earlier. By surpassing the 50% market share mark, AB InBev overtook HiteJinro to become the leading supplier in the industry.

The growth of AB InBev was driven by its flagship brand, Cass. Both the main product "Cass Fresh" and the low-calorie "Cass Light" showed strong growth. Cass maintained its position as the number one domestic beer brand, selling 106.44 million cases (based on 9L cases) last year. This is a 76.8% increase from the previous year's 60.22 million cases and accounts for nearly half of the total beer sold in South Korea last year (233.51 million cases).

Last year, Cass became the first domestic beer brand to introduce an aluminum bottle product and participated as an official partner of the Paris Olympics, releasing a limited Olympic edition. Cass Light also underwent a package renewal, and the brand strengthened its marketing efforts across the board, contributing to the increase in market share. In addition to Cass, "Budweiser" also sold 3.53 million cases, helping to boost AB InBev's market share.

Meanwhile, during the same period, HiteJinro's market share shrank from 41.6% to 33.5%, pushing it down to second place. The new brand "Kelly," launched in 2023, increased its sales by about 30% from 7.17 million cases in its first year to 9.29 million cases last year. However, the number two and three brands, "Terra" (from 40.06 million cases to 36.67 million cases) and "Hite" (from 29.67 million cases to 26.72 million cases), both saw declines in sales, resulting in an overall drop in market share. Meanwhile, Lotte Chilsung Beverage and Lotte Asahi Liquor maintained a market share in the 3% range.

The domestic beer market has been struggling for several years. Last year, total beer consumption was 233.51 million cases, a 0.2% decrease from 233.89 million cases the previous year. The compound annual growth rate (CAGR) over the past five years has been only 0.1%. The decline in the drinking population due to growing health concerns and the diversification of alcoholic beverages have also been negative factors for the beer industry.

In particular, RTD (Ready To Drink) products, such as canned highballs that emphasize refreshment and drinkability, are posing a direct challenge to beer. In fact, domestic RTD consumption last year was 2.94 million cases, a 71.9% increase from 1.71 million cases the previous year. In addition, changes in drinking culture, such as a decrease in company gatherings, have also contributed to the decline in beer consumption. Last year, the share of beer consumed at home rose slightly to 73.6% from 73.1% the previous year, while the share consumed in entertainment venues shrank further to 26.4%.

Despite rising interest in health, non-alcoholic beer, which had been expected to show high growth potential, has not expanded as much as anticipated. Non-alcoholic beer sales last year were 4.31 million cases, a 4.2% decrease from 4.5 million cases the previous year. Over the past five years, the compound annual growth rate was 49.9%, clearly indicating rapid market expansion. However, the growth has slowed, likely due to the abundance of substitutes. The compound annual growth rate for the next five years is projected to be -0.6%.

Meanwhile, in the domestic soju market, HiteJinro continued its dominance. HiteJinro sold 89.07 million cases of soju last year, maintaining its number one position with a 65.3% market share by manufacturer. Although the shrinking soju market led to a 3.5% decrease in sales from 89.94 million cases the previous year, its market share rose by 1.6 percentage points from 63.7%. In contrast, Lotte Chilsung Beverage saw its sales drop by 17.5% from 24.67 million cases to 20.35 million cases over the same period, with its market share falling more sharply from 17.5% to 14.9%. Muhak (6.8%), Geumbokju (3.2%), Mackiss (2.9%), and Daesun (2.8%) followed.