Imported Canned Beer Prices Fall 6.2%... Domestic Canned Beer Prices Slightly Rise
Consumer Agency's Investigation Results on 10 Major Canned Beer Products
[Asia Economy Reporter Lim Chunhan] In recent years, the price of imported canned beer has fallen, narrowing the price gap with domestic canned beer to an average of about 1,000 won.
On the 3rd, the Korea Consumer Agency announced that after investigating the average price trends of 10 major canned beer products (4 domestic and 6 imported), the price of imported canned beer (based on 500ml) dropped by 6.2%, from 3,375 won in the first half of 2019 to 3,165 won in the first half of this year. Meanwhile, the average price of domestic canned beer rose slightly by 0.5%, from 2,135 won to 2,145 won during the same period.
The average price difference between imported and domestic canned beer decreased from 1,240 won (58.1% compared to domestic canned beer) to 1,020 won (47.6%). This narrowing of the price gap is attributed to the change in the liquor tax system on beer from the 'ad valorem tax' based on the price of alcoholic beverages to the 'specific tax' based on the quantity of alcohol, which took effect in January last year. The tax burden on imported products, which had relatively higher selling prices, was reduced. The decline in exchange rates is also presumed to have had an impact.
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Meanwhile, due to the prolonged COVID-19 pandemic and the spread of the 'home drinking' trend, the variety of craft beers has increased. According to an analysis based on data provided by various distribution companies, as of June, the number of craft beer products sold by major distributors was 64, four times the number in the first half of 2019. The Consumer Agency explained, "With the increased demand for diverse beers and the relatively high production costs of craft beer, the shift to the specific tax system has enabled craft beer to gain price competitiveness."
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