"Alcohol Sales Decline, but This Alone Is on the Rise Amid Mass Bar Closures"

Snack Bars and Draft Beer Pubs Down 10% in One Year
Changing Drinking Patterns Among Young People
Sales of Low- and Non-Alcoholic Beer Up 21% Year-on-Year

Due to a combination of high inflation, the decline of company dinners, and a decrease in alcohol consumption among younger generations, neighborhood bars across the country are rapidly disappearing. The number of small bars and beer pubs has dropped by nearly 10% in just one year, and alcoholic beverage shipments have declined for two consecutive years.

According to the Korea Disease Control and Prevention Agency's National Health and Nutrition Survey, the overall high-risk drinking rate last year was 13.6%, slightly down from the previous year. In response to this trend, the alcoholic beverage industry is accelerating the expansion of non-alcoholic and low-alcohol products. According to Emart, sales of non-alcoholic and low-alcohol beer increased by 21% compared to the previous year. Getty Images

According to the National Tax Statistics Portal (TASIS) of the National Tax Service’s “Top 100 Consumer Business Categories” report, there were 7,985 small bars nationwide as of March this year. This represents a 10.2% decrease from the same period last year, when there were 8,894 establishments.

The number of beer pubs also declined. In March last year, there were 22,282 beer pubs, but this number decreased by 9.4% to 20,193 this year. The combined total of the two types of drinking establishments fell by 2,998 over the past year, reaching 28,178 nationwide.

Looking at the long-term trend, the decline is even more pronounced. The number of small bars dropped from 16,226 in March 2018 to 7,985 this year, effectively halving. Over the same period, beer pubs decreased from 36,076 to 20,193, a 44.0% reduction. The total number of bars nationwide fell from 52,302 in 2018 to 28,178 this year, marking a 46.1% decrease over eight years.

Neighborhood bars are rapidly disappearing due to changes in drinking culture. Pixabay

Actual alcoholic beverage consumption indicators reflect this downward trend as well. According to the National Tax Service’s liquor tax report, total alcoholic beverage shipments last year amounted to 3,516,230 kiloliters, a 2.9% decrease from the previous year. This marks two consecutive years of decline since 2022.

Industry experts point to the fading culture of binge drinking at company gatherings and the growing emphasis on health—illustrated by the spread of the “sober curious” movement—as the main causes. This indicates a fundamental change in consumption patterns rather than a temporary economic issue.

In particular, changes in drinking patterns among younger people are notable. According to the Korea Disease Control and Prevention Agency’s National Health and Nutrition Survey, the overall high-risk drinking rate last year was 13.6%, a slight decrease from the previous year. Among men in their 20s, the high-risk drinking rate dropped sharply from 15.4% to 9.7%. High-risk drinking is defined as consuming seven or more drinks for men, or five or more for women, at least twice a week.

Meanwhile, in response to these changes, the alcoholic beverage industry is accelerating the expansion of non-alcoholic and low-alcohol products and targeting overseas markets. According to Emart, sales of non-alcoholic and low-alcohol beer increased by 21% compared to the previous year. Major companies such as OB Beer and HiteJinro Beverage are also seeing continued growth in sales of these products.

The soju industry, in particular, is seeking breakthroughs in overseas markets. The export value of liqueurs, mainly fruit soju, reached 100.41 million dollars last year, a 4.3% increase compared to the previous year. Analysts say that the consumption of Korean alcoholic beverages, or “K-liquor,” is expanding in conjunction with K-content, especially in the United States and Southeast Asia.

This content was produced with the assistance of AI translation services.