Spirits - South Korea

The Spirits market in South Korea has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in South Korea have shifted towards premium and high-quality spirits, with consumers becoming more discerning in their choices. This trend is driven by the increasing disposable income and changing lifestyles of South Koreans, who are seeking more sophisticated and premium experiences. As a result, there has been a growing demand for imported spirits, particularly whisky and vodka, which are seen as symbols of prestige and luxury. In addition to premium spirits, there has also been a rise in the popularity of craft spirits in South Korea. Craft spirits are seen as unique and artisanal, appealing to consumers who value authenticity and quality. This trend is influenced by the global craft spirits movement, which has gained traction in South Korea as well. As a result, local craft distilleries have emerged, offering a wide range of unique and innovative spirits to cater to this growing demand. One of the key trends in the South Korean Spirits market is the growing popularity of cocktails and mixology. South Koreans are increasingly experimenting with different flavors and ingredients, and are eager to explore new and creative cocktail recipes. This trend is driven by the growing influence of Western drinking culture and the rise of cocktail bars and lounges in major cities. As a result, there has been a surge in demand for spirits that are suitable for mixing and creating innovative cocktails. Local special circumstances also play a significant role in the development of the Spirits market in South Korea. The country has a strong drinking culture, with alcohol playing a central role in social gatherings and business meetings. This cultural norm has created a steady demand for spirits, and has contributed to the growth of the market. Additionally, South Korea has a well-established distribution network, with a wide range of retail outlets and online platforms that make it easy for consumers to access and purchase spirits. Underlying macroeconomic factors such as the growing economy and increasing consumer spending power have also contributed to the development of the Spirits market in South Korea. The country's strong economic growth has led to rising disposable incomes, allowing consumers to spend more on premium and high-quality spirits. Furthermore, the government's efforts to promote tourism and attract foreign visitors have also had a positive impact on the market, as tourists often seek out local spirits as souvenirs. In conclusion, the Spirits market in South Korea is experiencing growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. Consumers are increasingly seeking premium and high-quality spirits, as well as craft spirits. The popularity of cocktails and mixology is also driving demand in the market. South Korea's strong drinking culture, well-established distribution network, and growing economy are contributing to the development of the market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.