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Trouble brews for beer, liquor makers as spending on alcohol slides 9% in Q1

Published: 03 Jun. 2026, 07:00

Visitors enjoy fried chicken and beer at the 2025 Daegu Chimac Festival in Daegu on July 9, 2025. [NEWS1]

The phrase "one more round" is becoming less common in Korea. As younger consumers cut back on drinking and workplace gatherings become increasingly alcohol-free, household spending on alcoholic beverages has fallen at the fastest pace on record, putting pressure on liquor makers to adapt.

Average monthly household spending on alcoholic beverages fell 9 percent on year to 13,000 won ($8.50) in the first quarter of this year, according to data from the Korean Statistical Information Service (Kosis) and the household expenditure survey on Tuesday.

It marked the sharpest decline since quarterly data collection began in 2019. Alcohol consumption has been falling for the 10th consecutive quarter since late 2023.

Even after accounting for inflation, spending on alcohol continued to decline. Nominal household spending on alcoholic beverages fell 7.5 percent on year to 15,000 won in the first quarter, marking the eighth consecutive quarter of decline.

The decline is also reflected in shipment data.

Domestic liquor shipments totaled 3.15 million kiloliters (832 million gallons) in 2024, down 17.2 percent from 3.81 million kiloliters in 2014, according to the National Tax Service. Shipments have continued to decline in recent years, falling from 3.27 million kiloliters in 2022 and 3.24 million kiloliters in 2023.

[NATIONAL TAX SERVICE]

Experts attribute the trend to changing drinking habits following the Covid-19 pandemic and the growing popularity of wellness-focused lifestyles. Younger consumers in their 20s and 30s are increasingly favoring lighter drinking occasions and moving away from the traditional group-drinking culture and company dinners, or hoesik, centered on soju and beer.

"I've only had alcohol at a work dinner once in the past six months," said Kim Ju-yeon, a 28-year-old office worker at a finance firm in Yeouido, Yeondeungpo District, western Seoul. "People are more conscious about their health these days, so drinking at hoesik has become much less common."

The liquor industry is responding by lowering alcohol content and restructuring operations.

Liquor company Hitejinro, whose first quarter sales and operating profit both declined, announced Tuesday that it will reduce the alcohol content of its flagship soju brand Chamisul Fresh from 16 percent to 15.7 percent.

Crates of alcoholic drinks are stacked near a restaurant in Jung District, central Seoul, on Aug. 18, 2025. [YONHAP]

The change marks the first reformulation of the product in about two years and four months. The ever-so-slightly lighter version will be available through distribution channels nationwide starting in mid-June.

"The change reflects growing consumer demand for lower-alcohol beverages," a Hitejinro source said.

Lotte Chilsung Beverage, maker of Chum-Churum soju, Saero zero-sugar soju and Kloud beer, has also been restructuring its business following weak earnings last year.

The company has rolled out its first-ever voluntary retirement program and is overhauling its nationwide sales network as part of its operational restructuring following weak performance last year.

Bottles of soju are displayed at a supermarket in Seoul on Feb. 26, 2023. [YONHAP]

In March, Lotte Chilsung Beverage revamped its fruit-flavored sparkling alcohol lineup under the Soonhari Jin brand and expanded its portfolio of low-alcohol products, including Soonhari Yuja Jin and Sangria Jin, which contain between 4.5 percent and 7 percent alcohol.

"Consumption of soju and beer is falling rapidly in the domestic market as drinking culture changes," said Lee Jong-woo, a business and marketing professor at Namseoul University. "The industry needs to adapt by expanding its range of lower-alcohol products and overhauling its business model to reflect changing consumer preferences."

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NOH YU-RIM [[email protected]]