Malt market in South Korea

Earlier Report Observations

From 2018 to 2020, the South Korean malt market underwent significant shifts. Growing popularity of craft beer and an increasing number of craft breweries from 2018 expanded demand for malt, supporting domestic production which rose from 77.4 thousand tons in 2018 to 100.6 thousand tons in 2019. However, in 2020 the COVID-19 pandemic caused severe global supply chain disruptions, leading to delays in imports and distribution. This contributed to a sharp contraction in market volume, which fell from 269.6 thousand tons in 2019 to 201.2 thousand tons in 2020.

In the following years, the market stabilized at a lower level. The government's strengthening of food and beverage labeling rules in 2021, mandating clearer origin and ingredient disclosure, affected supply conditions. At the same time, major domestic alcohol companies invested in new malt-based products and production capacity expansion. By 2022, rising global energy prices and logistics costs increased import expenses, while revised distribution and sales regulations permitted an expansion of online sales channels, improving consumer access. Consumer preference for premium and craft beer continued to drive demand for high-quality malt. By 2023, market volume had gradually recovered to 207.1 thousand tons, though domestic production fell to 55.0 thousand tons as imports rose, with producers focusing on automation and adopting eco-friendly processes in response to stricter environmental regulations.

In 2024, import volumes stood at 113.3 thousand tons. The Korean beer market's growth to approximately $21.1 billion in 2024 supported underlying malt demand. Ongoing investments in the Asian malt industry, such as Pernod Ricard's planned large-scale distillation and maturation facility in India, alongside the continued rise of e-commerce platforms for malt product sales, are shaping distribution and market dynamics.

Production malt in South Korea

In kind, 2017-2020, K t

Top producers of malt, 2017-2020

World map of production of malt, 2017-2020

South Korea's malt production saw a two-year increase before declining. In 2019, production reached its peak at 100.6 thousand tons. However, by 2020, it had fallen to 78.4 thousand tons, marking a 22.0% decrease from the previous year. Over the period from 2017 to 2020, production grew by 13.8%, which translates to an average annual increase of 4.4%. The most significant year-on-year growth occurred in 2019, with a 29.9% rise.

Annual dynamics of production in South Korea in kind, 2017-2020, K t

Exports malt from South Korea

Exports in kind, K t

South Korea's malt exports experienced notable fluctuations during this period. In 2019, exports peaked at 0.9 thousand tons, but by 2020, they had plummeted to 0.0 thousand tons, representing a dramatic 98.9% decline from the previous year. The difference between the high in 2019 and the low in 2020 was substantial, with a 93-fold variation. The largest increase was recorded in 2019, at 313.6%.

Annual dynamics of product's exports from South Korea in kind, 2017-2020, K t

From 2017 to 2020, South Korea's malt exports in kind were heavily concentrated on China, which accounted for 79.4% of the total volume. The remaining exports were distributed among other trading partners.

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, K $ US

South Korea's malt exports in value terms showed an unstable trend over the timeframe. In 2019, exports reached a high of 542 thousand US dollars, but by 2020, they had dropped to 30 thousand US dollars, reflecting a 94.5% reduction from the previous year. The change from peak to trough represented an 18-fold difference. The largest increase occurred in 2018, with a 229.6% rise.

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

Between 2017 and 2020, the primary buyers of South Korean malt in value terms were China, with a 54.8% share, Japan at 11.0%, and Russia at 10.0%. Together, these three countries accounted for 75.9% of total export value.

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 malt to South Korea

Imports in kind, K t

South Korea's malt imports in kind declined for the second year in a row. In 2018, imports hit a maximum of 191.2 thousand tons, but by 2020, they had decreased to 122.7 thousand tons, a 27.7% drop from the previous year. Over the 2017-2020 period, imports fell by 33.4%, equivalent to an average annual decline of 12.7%. The largest increase was in 2018, at 3.8%.

Annual dynamics of product's imports to South Korea in kind, 2017-2020, K t

From 2017 to 2020, Australia was the leading source for South Korea's malt imports in kind, with a 61.0% share, followed by Canada at 13.1% and China at 10.1%. These three countries combined represented 84.2% of total import volume.

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, K $ US

South Korea's malt imports in value terms declined for the third consecutive year. In 2020, imports amounted to approximately 67 305 thousand US dollars, showing a sharp 26.6% decrease from the previous year. Over the 2017-2020 period, imports decreased by 30.3%, with a compound annual growth rate of -11.4%.

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

Throughout 2017-2020, Australia dominated South Korea's malt imports in value terms, accounting for 59.3%, while Canada held 14.6% and China 8.1%. Together, these markets made up 82.0% of total import value.

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

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