"Why Not?" Chugging from Monday Morning... Rapid Growth of the Non-Alcoholic Market [The Way We Buy Now]

Decline in Alcohol Consumption Expands the Nonalcoholic Market

Beyond Beer to Sparkling Tea

Diversification of Products and Channels in the Alcohol Industry

Editor's NoteWhat are people buying these days? From household goods you always pick up at Daiso, to cosmetics that fly off the shelves at Olive Young, to bread that people line up for—today’s marketplace trends can be found in these familiar scenes of consumption. “The Way We Buy Now” is a series that deciphers today’s consumer trends by looking at what sells well in daily life. Which products get chosen, and what strategies persuade people to open their wallets? We explain the changes on the ground in an easy and engaging way.

Image generated by artificial intelligence (AI) to aid in understanding the article. ChatGPT

"I'll have this instead of alcohol."

With Chuseok approaching, the traditional drinking culture during the holidays is changing rapidly. More people are choosing non-alcoholic and alcohol-free beverages for reasons such as having to drive or health management, instead of the old custom of raising a glass. As the “sober curious” movement focused on drinking less spreads, non-alcoholic beverages have established themselves as a distinct category, not just as a substitute but as a way to enjoy the atmosphere.

The actual data for alcohol consumption also show a downward trend. According to the “2025 Alcohol Industry Information Survey” by the Ministry of Agriculture, Food and Rural Affairs and Korea Agro-Fisheries & Food Trade Corporation (aT), the average monthly drinking frequency among consumers who drink at least once a month decreased from 9.0 days in 2023 to 8.8 days in 2025, and the average number of drinks per day dropped from 6.7 glasses to 6.6. This is why the alcoholic beverage industry is turning its eyes to the non-alcoholic market.

Industry Competes in the ‘Non-Alcoholic’ Market...Expanding Product Lines and Restaurant Sales

As traditional alcohol consumption declines, the alcoholic beverage industry is expanding its non-alcoholic product lines and boosting sales through dining and entertainment channels to capture demand. HiteJinro Beverage’s “Terra Zero 0.000” surpassed 12 million cumulative units sold in just six months since its launch. Thanks to the popularity of the canned product, HiteJinro Beverage sold out its initial shipment of 900,000 units of 330ml and 500ml bottles—designed for entertainment and dining channels—in just ten days. To keep up with soaring demand, the company is running production lines at outside specialty drink companies at full capacity, including OKF Beverage in Andong, Gyeongbuk, Daekyung Apple Horticultural Cooperative in Gunwi, Daegu, and Sangil in Geochang, Gyeongnam.

Non-alcoholic beer sold at convenience stores. Yonhap News

The company is also aggressively widening consumption occasions. HiteJinro Beverage’s latest advertisements depict situations where it is difficult to drink beer—like Monday mornings, temple stays, or reserve force training—delivering the message, “Why not?”. This goes beyond extending beer drinking hours to developing consumption occasions that were previously out of reach.

OB Beer is also expanding its range of non-alcoholic products. According to the company, as of May, it recorded a 43.5% market share by manufacturer sales in the domestic non-alcoholic beer market. After leading with “Cass Zero,” the company launched a revamped “Cass Lemon Squeeze Zero” in July and expanded its distribution to online channels, convenience stores, hypermarkets, and restaurants.

Cloud Non-Alcoholic Lemon Lime. Lotte Chilsung Beverage

Lotte Chilsung Beverage’s “Cloud Non-Alcoholic” also saw its sales rise by about 40% last year compared to 2024. Recently, the company introduced limited editions with lemon and lime flavors, further expanding its product line.

Beyond Beer to Sparkling Tea...The Range of Choices Is Diversifying

The scope of non-alcoholic beverages is expanding from beer to a variety of drinks. Last month, Kooksoondang introduced the UK’s premium non-alcoholic sparkling tea brand “Saicho” to the domestic market. The product, which aims to be a premium beverage alternative to champagne and wine, comes in three varieties: Darjeeling, Jasmine, and Hojicha.

Kooksoondang explained that as the “sober curious” trend gains traction, with people prioritizing health without sacrificing taste or atmosphere, non-alcoholic beverages are now firmly established as a category chosen at meals and gatherings.

A 56.5 Billion Won Market Grows to 95.6 Billion Won...The Rules of Survival Are Changing for Alcoholic Beverage Companies

The market itself is also expanding. According to NielsenIQ Korea, sales of “Hite Zero 0.00” reached about 20.8 billion won last year, up 21.8% from a year earlier. Its market share by sales was 36.8%, while the combined share of Cass 0.0 and Cass 0.0 Lemon was 33.4%. Euromonitor projects that the domestic non-alcoholic beer market will grow from 70.4 billion won in 2024 to 95.6 billion won in 2027.

Whiskey stock photo. Photo by Yonhap News

In contrast, the traditional alcohol market continues to stagnate. Diageo Korea's operating profit from July 2024 to June of the previous year was 9.4 billion won, down 48.4% from 18.2 billion won a year earlier. Over the same period, the company moved from a net profit of 15.1 billion won to a net loss of 11.2 billion won. Among selling and administrative expenses, salaries fell by 35.9% while retirement benefits rose by 39.4%.

Pernod Ricard Korea, which sells Ballantine’s and Royal Salute, saw its operating profit drop 71.6% year-on-year to 15.1 billion won over the same period, and net profit fell from 40.9 billion won to 5.7 billion won. Campari Korea's operating profit also decreased by 53% to 1.29 billion won last year from 2.75 billion won the year before. Homegrown whisky maker Golden Blue posted an operating loss of 3.3 billion won and a net loss of 2.6 billion won in the first half of this year.

Ultimately, the growing popularity of non-alcoholic beverages signals more than a passing fad: it marks a shift in the alcoholic beverage market from “how much do you drink?” to “how do you enjoy it?”. As traditional alcohol consumption declines and drinking methods become more diverse, the battle for market dominance among companies and the rules for survival are expected to become even fiercer.

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