South Korean alcohol consumption drops most in 7 years amid avoidance trend

Alcohol consumption in South Korea has seen its steepest decline in seven years, with real spending on alcoholic beverages by households dropping 9.0% in the first quarter of this year compared to the same period in 2023. This marks the largest quarterly decrease since statistics were first compiled in 2019. The trend of reducing alcohol intake is becoming entrenched, with real spending falling for 10 consecutive quarters. Even when accounting for inflation, nominal spending on alcohol has decreased for eight consecutive quarters, showing a clear and persistent downward trajectory. Younger consumers, aged 39 and under, have reduced their nominal spending on alcohol by 5.7%, while those in their 40s have cut back by 5.1%. This pattern has continued for five and nine quarters, respectively. Middle-aged and older demographics are also drinking less, with those in their 50s showing the largest decrease at 10.2%, and those over 60 down by 6.9%. This indicates a widespread shift across all age groups away from alcohol. The decrease in consumption is also evident in the volume of alcohol shipped. In 2024, domestic alcohol shipments totaled 3.15 million kiloliters, a 17.3% reduction from 3.81 million kiloliters in 2014. This shift is linked to a growing emphasis on personal health and well-being, coupled with a move away from traditional, heavy group drinking cultures. Even binge drinking rates have shown a slight decrease. In response, the South Korean beverage industry is actively diversifying its offerings. Companies are enhancing their low-alcohol and non-alcoholic product lineups and introducing products with significantly reduced calories to appeal to the "healthy pleasure" trend. HiteJinro, for example, is adjusting the alcohol content of its popular "Chamisul Fresh" from 16% to 15.7%, citing a consumer preference for lower alcohol levels.

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The low-alcohol trend means consumers' preference for alcohol content is continuously decreasing, and we are proceeding with this renewal with that in mind.