"From Cost-Effectiveness to Emotional Value" The Trend of Premiumization in the Soju Market

Shift to a 'Enjoyable' Drinking Culture
Premium Soju Sales on the Rise
Preference for Clean-Tasting 'Distilled' Soju

[Asia Economy Reporter Eunmo Koo] A premium trend is sweeping through the soju industry. Recently, as drinking culture has shifted from 'getting drunk' to 'enjoying the drink,' the consumer base that prefers to savor the original taste and flavor of ingredients, despite relatively higher prices, is increasing.

According to Emart on the 25th, the share of premium soju priced over 5,000 won per bottle for home use increased from 11.4% in 2019 to 14.0% in 2020, and then jumped to 21.8% last year. Sales also continued their momentum, growing 40.3% year-on-year in 2020 and increasing by 35.7% again last year.

The shipment volume of premium soju is also rising. According to the National Tax Service's tax statistics, the shipment volume of distilled soju in 2020 was 1,929 kL, a 12.5% increase from 1,714 kL the previous year. This contrasts with a 4.5% decrease in the shipment volume of diluted soju during the same period. The shipment volume of distilled soju has been on an upward trend, increasing by more than 60% since 2016, and reportedly exceeded 2,000 kL last year. Distilled soju is characterized by being fermented from grains and single-distilled, resulting in a relatively higher alcohol content and a clean taste.

Sales of products representing the domestic premium soju market are also increasing. HiteJinro's 'Ilpum Jinro' saw sales rise 78% year-on-year last year, and Gwangjuyo Group's 'Hwayo' also maintained double-digit growth, with sales increasing 15.4% in 2020 compared to the previous year.

HiteJinro 'Ilpum Jinro'

The increase in people seeking premium soju and the expansion of products are rooted in a shift in alcohol consumption trends that prioritize quality over quantity. Since the COVID-19 pandemic, as drinking at home has increased, interest in various types of alcoholic beverages has grown, creating an atmosphere of 'let's properly enjoy even just one drink.' Preference is expanding for distilled soju, which offers better 'value for the heart' (gashimbi), rather than diluted soju, which is known for its 'cost-effectiveness' (gaseongbi).

The premium soju market is expected to continue steady growth with ongoing premiumization and diversification. An industry insider explained, "Many traditional liquor breweries are conducting aging after distillation," adding, "The foundation for growth is continuously being built as diverse and high-quality brands attract consumer interest." The industry predicts that the premium market, estimated at around 40 billion won last year, will grow to between 60 billion and 70 billion won this year.

This content was produced with the assistance of AI translation services.