South Korea: Non-alcoholic beer gaining momentum in South Korea

Non-alcoholic beverages are increasingly becoming a buzzword among drinkers in Korea, with those in their 20s and 30s leading the trend. Non-alcoholic drinks in Korea contain less than 1 percent alcohol, while alcohol-free drinks are below 0.05 percent alcohol, The Korea Times reported on February 13.

The trend reflects the shift in young consumers' drinking culture, favoring healthier options over getting excessively drunk and feeling sick later on. Beer companies have begun introducing non-alcoholic products to cater to this trend, which is not limited to Korea. Globally, the trend is gaining momentum, with new terms like "NoLo" (non- or low-alcohol) and "sober curious" emerging.

The most evident sign of the nonalcohol trend is that breweries of all sizes here have begun releasing non-alcoholic products and focusing their marketing on the emerging consumer trend.

Lotte Chilsung Beverage, one of the country's top three beer companies, released Kloud Non Alcoholic last month, with an alcohol content of less than 1 percent. It still retains the flavor of the original Kloud, according to the company.

Lotte Chilsung previously introduced alcohol-free beers which are said to contain almost no alcohol at all. With the release of Kloud Non Alcoholic, a company official stated that the product represents the company’s "perfect version" of both the non-alcoholic and alcohol-free categories combined. The company plans to focus its marketing efforts on promoting Kloud Non Alcoholic in the non-alcoholic beverage market.

Oriental Brewery, another major beer brand here known for its signature Cass brand, got a head start in the domestic market by introducing Cass Lemon Squeeze 0.0 in November. Containing just 0.05 percent alcohol, it is the company’s first non-alcoholic version of Cass Lemon Squeeze, which was first released in 2023.

The company previously promoted its nonalcohol beer Cass 0.0 at Team Korea House during the Paris Olympics last summer.

“There has been an increase in demand for non-alcoholic beverages with a unique taste among consumers in their 20s,” a company official said. He added that the company will target the consumer group with the new product at restaurants and bars, citing a new law that allows non-alcohol products to be sold at these businesses.

A revision to the country’s Liquor Tax Act last May lifted the ban on the products’ distribution to restaurants, where only drinks with at least 1 percent alcohol had been allowed.

Jeju Beer Company, the country’s largest craft brewery, has also begun focusing its marketing on non-alcoholic products. Currently offering two non-alcoholic products, Jeju Nouveau and Jeju Nouveau Mango, the company plans to introduce three new non-alcoholic products this year.

The company is also shifting its production and distribution focus to invest more in non-alcoholic products. It will stop producing its conventional beer products with the lowest sales performance and replace them with non-alcoholic products to boost production capacity.

The company will also begin distributing non-alcoholic beers on online platforms, expanding beyond its previous distribution channels, which included discount chain stores and convenience stores. Non-alcoholic products, unlike alcoholic ones, are permitted for online sale here. Additionally, the company will start providing non-alcoholic product samples to companies overseas to which it exports its regular beer products.

“Non-alcoholic beer is right now a global trend, not limited to Korea,” a Jeju Beer official said. The company currently exports to over 20 countries including China, Japan, Russia and the Netherlands.

“Our top nonalcohol beer export goes to Russia, where young consumers are increasingly finding our products. It is unlike the older generations there who are loyal to vodka.”

According to market analyst Euromonitor International, the non-alcoholic beer market in Korea was valued at 41.5 billion won ($28.5 million) in 2021. It grew by over 55 percent to reach 64.4 billion won in 2023 and is expected to hit 100 billion won by 2027. The Food Information Statistics System, managed by the state-run Korea Agro-Fisheries & Food Trade Corp., predicts the domestic market could even grow to 200 billion won this year.

The popularity of non-alcoholic beer has led to the emergence of dedicated market platforms here. Market NOD is one such platform. It not only sells non-alcoholic beverages from various brands online but also allows like-minded individuals to share stories and online publications on the subject.

Non-alcoholic beer is now a sweeping new trend in the global food and beverage market. The category is speculated to account for 10 percent of the entire liquor market in Japan and 7 percent in Germany. In the United States, sales of non-alcoholic beer nearly tripled in 2023 compared to 2019, showing a 35 percent year-on-year growth, while the overall beer market saw just a 1 percent increase.

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