Alcoholic beer market in South Korea

Earlier Report Observations

In 2018, the Ministry of Economy and Finance eased production regulations for small breweries, supporting creative brewing methods and independent brands, which helped stimulate the craft beer segment. The market volume remained stable at around 1 975 million liters. The COVID-19 pandemic in 2020 shifted consumption patterns toward home drinking and accelerated online alcohol sales, leading to a volume increase to 2 069 million liters, although the market value dipped to 1 349 million $ as consumers leaned toward more affordable options.

A sharp market contraction occurred in 2021, with volume falling to 1 500 million liters. This drop was driven by the MZ generation diversifying their alcohol consumption toward distilled spirits and ready-to-drink highballs, which reduced beer demand. Recovery followed in 2022, as domestic alcohol shipment values rose by 12.9% and flavor hyper-segmentation attracted consumers, pushing volume to 1 824 million liters and value to 1 277 million $.

By 2023, market volume stabilized at 1 822 million liters while value grew to 1 388 million $, reflecting a premiumization trend. Regulatory easing, including revised liquor tax laws that permitted contract brewing and mobile order sales, fostered greater beer variety. The expansion of premium domestic and craft beers, which reached 22 million liters in output, further supported this shift toward higher-value products.

Production alcoholic beer in South Korea

In kind, 2017-2020, M l

Between 2017 and 2020, South Korea ranked as the 23rd largest producer of alcoholic beer globally.

Top producers of alcoholic beer, 2017-2020

World map of production of alcoholic beer, 2017-2020

In 2020, South Korea produced 1 900 million liters of alcoholic beer, showing a modest year-over-year increase of 5.6%. Over the 2017-2020 period, production fell by 5%, with a compound annual growth rate of -1.7%. The lowest production level occurred in 2018 at 1 798 million liters, which also saw the steepest decline of 10.1%.

Annual dynamics of production in South Korea in kind, 2017-2020, M l

In value, 2017-2020, M $ US

South Korea's alcoholic beer production declined for the third year in a row. In 2020, the output was valued at 1 191 million US dollars, marking a 5.1% decrease compared to the previous year. From 2017 to 2020, production dropped by 16.2%, translating to an annualized rate of -5.7%.

Annual dynamics of production in South Korea in value, 2017-2020, M $ US

Exports alcoholic beer from South Korea

Exports in kind, M l

South Korea's alcoholic beer exports fell for the second consecutive year. In 2020, export volume reached 109.3 million liters, a sharp decline of 47.8% from 2019. Over the 2017-2020 period, exports decreased by 30.9%, with a compound annual growth rate of -11.6%. The peak was in 2018 at 211.7 million liters, which also recorded the largest increase of 33.8%.

Annual dynamics of product's exports from South Korea in kind, 2017-2020, M l

From 2017 to 2020, China, Hong Kong, and Iraq were the main buyers of alcoholic beer from South Korea, accounting for 44.7%, 31.8%, and 6.5% of exports in volume, respectively. Together, they made up 83.0% of total exports in kind.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from South Korea in kind, 2017-2020

Exports in value, M $ US

Alcoholic beer exports from South Korea declined for the second year running. In 2020, export value totaled 68.5 million US dollars, reflecting a dramatic drop of 53.1% compared to the previous year. Between 2017 and 2020, exports fell by 39.1%, equating to an annualized rate of -15.2%. The highest value was in 2018 at 154.4 million US dollars, which also saw the largest increase of 37.3%.

Annual dynamics of product's exports from South Korea in value, 2017-2020, M $ US

Throughout 2017-2020, China, Hong Kong, and Iraq were the key destinations for South Korea's alcoholic beer exports in value terms, representing 49.5%, 26.5%, and 5.8% of total exports, respectively. Combined, they accounted for 81.9% of export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from South Korea in value, 2017-2020

Imports alcoholic beer to South Korea

Imports in kind, M l

Alcoholic beer imports into South Korea declined for the second consecutive year. In 2020, imports amounted to 277.9 million liters, down 22.8% from the previous year. Over the 2017-2020 period, imports decreased by 16.1%, with a compound annual growth rate of -5.7%. The maximum volume was in 2018 at 388.0 million liters, which also experienced the largest increase of 17.1%.

Annual dynamics of product's imports to South Korea in kind, 2017-2020, M l

In 2017-2020, Japan, China, and Belgium were among the largest suppliers of alcoholic beer to South Korea, contributing 16.2%, 15.2%, and 13.9% of imports in volume, respectively. However, together they represented only 45.4% of total imports in kind, indicating a broadly diversified partner base.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to South Korea in kind, 2017-2020

Imports in value, M $ US

Foreign alcoholic beer supplies to South Korea declined for the second year in a row. In 2020, imports stood at 226.9 million US dollars, equivalent to a 19.2% year-over-year decrease. Between 2017 and 2020, imports fell by 13.8%, translating to an annualized rate of -4.8%. The peak value was in 2018 at 309.7 million US dollars, which also recorded the largest increase of 17.7%.

Annual dynamics of product's imports to South Korea in value, 2017-2020, M $ US

Over 2017-2020, imports in value terms were distributed across a wide range of partner countries. Japan, China, and Belgium accounted for 18.1%, 14.3%, and 11.8% of imports in value, respectively, but together they made up just 44.1% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to South Korea in value, 2017-2020