"Shall We Grab a Drink?" KRW 30,000 a Round... Young Adults: "Prices Make My Hands Shake; I Can't Drink Out"

Beer Pubs Fall to 19,057 in August as High Prices Take Their Toll
Pub Spending by People in Their 20s Down 20.9%; Drinking at Home on the Rise

As high prices and an economic slowdown persist, South Korea's beer pub market is rapidly contracting. The burden of going out for drinks has grown as alcohol and food prices have risen. The trend is also believed to reflect the spread of shorter, simpler gatherings and solo drinking since the COVID-19 pandemic.

According to National Tax Service tax statistics on Oct. 14, there were 19,057 beer pubs nationwide in August this year. For the first time since statistics on the sector began being compiled, the number fell below 20,000 for August. Compared with 21,410 in the same month last year, the figure was down by 2,353, or 11.0%.

The number of beer pubs has been declining for several years. The August tally fell steadily from 30,825 in 2020 to 27,341 in 2021, 26,358 in 2022, 25,158 in 2023 and 23,546 in 2024. More recently, the decline has accelerated, with annual drops exceeding 2,000 establishments.

Young people are spending far less at pubs as alcohol and food prices weigh on them

Drinking culture, once centered on going out for drinks, is shifting toward drinking at home and consumption driven by personal preferences.

Industry officials cite the economic slowdown and weaker consumption as major causes. They say consumers are increasingly cutting back on dining out and entertainment first as the cost of living rises.

Domestic alcohol shipments have also been declining. Shipments fell from 3,268,623 kiloliters in 2022 to 3,237,036 kiloliters in 2023 and 3,151,371 kiloliters in 2024, then dropped further to 2,987,000 kiloliters last year. That was the lowest figure since the relevant statistics began in 2006.

Rising operating costs, including labor and rent, are adding to the burden. As prices for both alcoholic beverages and food have climbed, consumers are also feeling the pinch when they go out for drinks.

Soju is on display in the liquor section at the Yangjae branch of Hanaro Mart in Seocho-gu, Seoul. Photo by Kang Jinhyung.

With more establishments charging over KRW 6,000 for a bottle of soju, ordering food as well can easily bring the bill for one drinking session to more than KRW 30,000. Even consumers looking to enjoy just a casual drink may find a visit to a pub costly.

Spending among younger people has also fallen sharply. According to a trend report released by NH Nonghyup Bank in January this year, spending by people in their 20s at pubs fell 20.9% last year from the year before. Spending among those in their 30s also declined 15.5%.

Fewer company dinners, more solo drinking... drinking habits are changing, too

The decline in workplace dinners since the COVID-19 pandemic is also believed to have contributed to the shrinking number of beer pubs. Instead of drinking late into the night in large groups, people are increasingly opting for a short meal or skipping drinking occasions altogether.

Consumer trends that prioritize health are also playing a part. As "healthy pleasure" - enjoying exercise and managing one's diet - gains attention, more consumers are choosing not to drink at all or to cut back on alcohol.

Meanwhile, demand remains steady for alcohol purchased at supermarkets and convenience stores to enjoy at home. As consumers increasingly choose products to suit their tastes and enjoy them alone or in small groups rather than drinking large amounts, analysts say drinking culture, once centered on going out for drinks, is shifting toward drinking at home and consumption driven by personal preferences.

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