The 'World Cup Boom' Is a Thing of the Past... Alcohol Industry Faces Growing Concerns

Main Matches of the 'North and Central America World Cup' to Be Held on Weekday Mornings
Sober Culture Spreads Among Gen Z
World Cup Marketing Expenses Add to the Burden

With the upcoming '2026 FIFA North and Central America World Cup' set to take place in June, concerns are mounting within the domestic alcoholic beverage industry. The World Cup is typically regarded as the single most high-profile sporting event, and is seen as a peak season for alcohol sales. However, this year, with matches scheduled in the morning hours, expectations for a 'World Cup boom' have diminished. In addition, a growing trend among Millennials & Gen Z in their 20s and 30s to avoid drinking, combined with the already committed World Cup marketing expenses, is becoming a considerable burden for the industry.

According to the alcoholic beverage industry on the 17th, OB Beer kicked off its World Cup marketing campaign in earnest the previous day, with its beer brand Cass becoming an official sponsor of the FIFA World Cup. Cass is the only domestic alcoholic beverage brand to serve as an official FIFA World Cup sponsor.

The World Cup period is considered a boon for the industry, as alcohol sales typically surge, leading to improved performance. In particular, beer, which can be consumed casually, accounts for an overwhelming share of sales. The 2022 Qatar World Cup, though held in winter, saw record results as the World Cup boom coincided with the lifting of COVID-19 social distancing restrictions for the first time at year-end.

At that time, OB Beer, the official sponsor of the Qatar World Cup, recorded sales of 1.56 trillion won in 2022, an increase of about 16% from the previous year, while operating profit surged 38% to 360 billion won. Its flagship beer, Cass, drove this growth. In the same year, comprehensive alcoholic beverage company HiteJinro posted sales of 2.497 trillion won, up 13% year-on-year, and operating profit of 190 billion won, a 9.5% increase. The combined sales growth of soju and Terra led to record-high revenues.

During the 2018 Russia World Cup, OB Beer recorded sales of 1.6981 trillion won and operating profit of 514.5 billion won, with an operating margin in the 30% range. HiteJinro posted sales of 1.8856 trillion won and operating profit of 90.4 billion won. The Russia World Cup's main matches were held between 9 p.m. and midnight Korean time, providing optimal conditions for increased consumption of beer and other alcoholic beverages.

In particular, during both the 2018 and 2022 World Cups, sales growth was driven by the so-called 'home spectators' who preferred purchasing alcohol at convenience stores or supermarkets and watching the games at home, rather than consuming alcohol at restaurants or bars.

However, for this year's North and Central America World Cup, the group stage matches are scheduled on weekdays between 10 a.m. and 11 a.m., making it difficult for the main consumer demographic of people in their 20s to 50s—especially office workers—to drink alcohol during the games.

The growing sober culture among people in their 20s and 30s, the core beer consumption group, is also expected to hinder any World Cup-related sales surge. Last year, OB Beer recorded separate sales of 1.7755 trillion won, an increase of about 2% year-on-year, but operating profit fell by about 20 billion won (5.44%) to 347.6 billion won. As the alcoholic beverage market has slowed, the company increased promotional activities to drive top-line growth, but profitability deteriorated as a result. OB Beer's advertising expenses rose by about 6%, from 153.9 billion won in 2024 to 163.1 billion won last year.

HiteJinro, the second-largest player in the beer market, is facing even greater difficulties. Last year's beer sales amounted to 758.1 billion won, a 7.9% decrease from 2024. Operating profit plunged 75%, from 34.3 billion won in 2024 to 8.6 billion won last year.

Another factor squeezing profitability this year is the industry's view that 'World Cup marketing' is inevitable. Since being selected as the first domestic beer brand to serve as an official FIFA World Cup beer at the 2014 Brazil World Cup, AB InBev, the parent company of OB Beer, has continued to participate as an official sponsor. OB Beer is running a package event until May 9, offering customers who purchase Cass Fresh a chance to win tickets to watch the national soccer team's qualifying matches on-site.

Captain of the national soccer team Son Heung-min appears as the model in the Terasoni advertisement photo. Terasoni webpage.

While HiteJinro is not an official World Cup beer sponsor, the company plans to conduct 'soccer marketing' during the World Cup period by featuring Son Heungmin, the captain of Korea's national soccer team, as its advertising model this year.

An industry official commented, "While the World Cup is certainly a factor driving increased alcohol consumption, it does not appear that we will be able to enjoy a full boom as in previous years." The official added, "We are hoping that the World Cup will help create an atmosphere for enjoying alcohol, but we will have to wait and see the extent to which operating profit increases as a result of World Cup-focused marketing expenses."

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