As alcohol consumption in South Korea slows, Japanese beer continues to thrive. By September, imports of Japanese beer exceeded 100 billion won, and its share of total beer imports approached half. With the market expanding, Kirin has partnered with Hite Jinro for domestic production, while Asahi and Sapporo are accelerating their consumer outreach through new product launches and experiential marketing.
According to data from the Korea Customs Service, the import amount of Japanese beer from January to September reached $75.22 million (approximately 100 billion won), marking a 25.0% increase compared to the same period last year. This figure represents about 95% of last year's total annual imports of $79.15 million, suggesting a strong possibility of setting a new record this year.
The increase in import volume is also significant. In the third quarter, imports of Japanese beer totaled 37,466 tons, a 24.3% rise from the previous year, achieving the highest quarterly volume on record. During the same period, total beer imports rose by 11.2% to 77,371 tons, with Japanese beer accounting for 48.4% of the total. Notably, of the overall increase of 7,811 tons in imports, 7,314 tons, or 93.6%, were from Japan.
In contrast, the domestic alcohol market is showing clear signs of contraction. According to the National Tax Service, domestic alcohol shipments decreased from approximately 3.26 million kiloliters in 2022 to 3.23 million kiloliters in 2023, with projections of further declines to 3.15 million kiloliters in 2024 and 2.99 million kiloliters in 2025. This marks the first time annual shipments have fallen below 3 million kiloliters since the 1998 financial crisis, a span of 27 years.
Despite the overall decline in alcohol consumption, Japanese beer is expanding its market presence, intensifying competition among brands. Kirin has made a strategic move by initiating domestic production. Hite Jinro, which imports and distributes Kirin beer, has begun producing 'Kirin Ichiban Shibori' canned beer at its Jeonju plant this month. The production process incorporates manufacturing methods and quality control standards from Japan, with an initial production target of 1.5 million liters. Hite Jinro plans to source about 75% of the Kirin Ichiban Shibori sold domestically next year from local production.
Lotte Asahi Beverages expanded its product line in June with the launch of the zero-carb 'Asahi Style Free.' Meanwhile, MZ Beverages, which imports and distributes Sapporo beer, opened a pop-up store called 'Ebisu The Lounge' last month at The Hyundai Seoul, featuring draft beer tastings and food pairings.
An industry insider noted, “As demand for Japanese beer stabilizes, companies are diversifying their strategies beyond mere imports and sales to include product line expansions, experiential marketing, and domestic production. It will become increasingly important for brands to secure a solid consumer base in South Korea.”
* This article has been translated by AI.
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