Samjong KPMG: "Domestic Alcohol Industry Must Expand Premium Lineup and Export Channels"

‘Shifting Liquor Market, What Is the Breakthrough for Companies?’ Report Published

Due to the diversification of alcoholic beverage preferences and the increase in imported alcoholic beverages, the domestic alcoholic beverage market has shown increased volatility. Samjong KPMG announced this in a report titled ‘The Shifting Alcohol Market, Breakthrough Strategies for Companies?’ published on the 29th.

According to the report, the domestic alcoholic beverage shipment value in 2022 recorded approximately 10 trillion KRW, a 12.9% increase compared to the previous year. In particular, consumption of relatively high-priced categories such as whiskey and distilled soju significantly increased. The trend of consumers preferring imported alcoholic beverages continues, expanding the proportion of imported shipments within the total domestic alcoholic beverage shipments. The share of imported alcoholic beverages in total shipments increased from 3.9% in 2012 to 10.2% in 2022, a 6.3 percentage point rise.

Diversification of consumed beverage types also had an impact. From 2021 to last year, in addition to core imported categories such as wine, beer, and whiskey, there was a notable increase in imports of non-mainstream categories like cheongju, gaoliang liquor, and cognac. Consumption patterns also changed. The ‘Healthy Pleasure’ trend, which pursues both health and enjoyment, and the ‘NoLo (Non-Alcoholic and Low-Alcohol)’ trend spread, with zero-sugar soju, non-alcoholic beer, and low-calorie sparkling alcoholic beverages gaining popularity.

The report advised alcoholic beverage companies to expand their scope through export activation to overcome the limitations of the saturated domestic market. It also recommended expanding product lineups to meet diverse consumer preferences.

Samjong KPMG Deputy CEO Lee Yong-ho said, “Domestic alcoholic beverage manufacturers aiming to establish a faster and more stable presence in overseas markets can consider not only expanding sales channels through simple exports but also acquiring local companies with large-scale production facilities or directly establishing production facilities locally through the Greenfield approach.”

He added, “Although the Greenfield approach involves large initial costs during market entry, it is characterized by allowing overseas-entering companies to have direct control over production facilities, enabling the integration of advanced production technologies to differentiate products and enhance competitiveness. Companies should strategically choose investment methods according to their entry objectives and circumstances.”

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