NewsMacroSouth Korea's Alcohol Production Hits 27-Year Low as Drinking Habits Shift

South Korea's Alcohol Production Hits 27-Year Low as Drinking Habits Shift

Author: Korea Herald Business·

Key Takeaways

  • Total alcohol shipments in South Korea fell below 3 million kiloliters in 2025 for the first time in 27 years.
  • Beer shipments, the largest category, dropped 7.2 percent year on year to about 1.52 million kiloliters.
  • Soju shipments fell to 793,000 kiloliters, and takju shipments came to 318,000 kiloliters.
  • Beer and soju shipments have declined for three consecutive years, while takju shipments have fallen for five straight years.
  • Fruit wine shipments rose to about 17,000 kiloliters last year, and producers are expanding non-alcoholic and low-alcohol offerings.
South Korea's Alcohol Production Hits 27-Year Low as Drinking Habits Shift

South Korea's alcoholic beverage production fell below 3 million kiloliters in 2025 for the first time in 27 years, data showed Sunday, in the latest sign of a structural decline in an industry that has long been a fixture of the country's social life.

According to figures from the National Tax Service, which tracks alcohol shipments subject to liquor taxes, total output stood at slightly below 2.99 million kiloliters last year — the first time the figure has come in under the 3-million-kl mark since 1998.

The decline was broad-based across the country's most popular drinks. Beer shipments, the largest category by volume, totaled about 1.52 million kiloliters, down 7.2 percent from a year earlier. Soju, Korea's signature distilled spirit and one of the most widely consumed liquors in the world by volume, recorded shipments of 793,000 kiloliters, while takju — the category of traditional milky, unfiltered rice liquor that includes makgeolli — posted 318,000 kiloliters.

The downturn has been years in the making. Beer and soju shipments have now fallen for three consecutive years since 2022, and takju shipments have declined for five straight years as of 2025.

The prolonged slide across the three main categories points to a structural shift in drinking trends, driven by growing health consciousness, a shrinking population, the aging of society and changing attitudes toward late-night gatherings.

A report by the agriculture ministry showed that both the volume and frequency of alcohol consumption have slowed recently, with many consumers gravitating toward specific types of drinks or experimenting with new options rather than sticking to traditional staples.

One example of these shifting preferences is fruit wine. Domestic shipments reached about 17,000 kiloliters last year, topping the 17,000-kl mark for the first time since 2021.

The industry is responding by introducing new non-alcoholic and low-alcohol beverages, along with products featuring a wider variety of flavors and scents, as producers look to adapt to changing demand in a market that has traditionally been anchored by beer, soju and takju. (Yonhap)