South Korea Distilled Spirits Market Size, Share, and COVID-19 Impact Analysis, By Product Type (Whiskey, Soju, Vodka, Brandy, Rum, Gin, Others), By Distribution Channel (On-Trade, Off-Trade), and South Korea Distilled Spirits Market Insights, Industry Trend, Forecasts to 2035

South Korea Distilled Spirits Market Insights Forecasts to 2035

• The South Korea Distilled Spirits Market Size is Expected to Grow at a CAGR of around 3.9% from 2025 to 2035
• The South Korea Distilled Spirits Market Size Is Expected to Hold a Significant Share By 2035

According to a research report published by Spherical Insights & Consulting, the South Korea Distilled Spirits Market is anticipated to grow at a CAGR of 3.9% from 2025 to 2035. The market is driven by Korea's evolving drinking culture, shift from traditional mass-produced alcohol to craft and premium spirits, and government initiatives promoting Korean traditional spirits like craft soju and takju.

Market Overview

Distilled spirits are alcoholic drinks that are acquired in the distillation process from fermented fruit or plant juice or starchy substances such as grains. Brandy, whiskey, rum, gin, tequila, and vodka are a few examples. Distilled spirits or hard liquor include high-ABV drinks made by distillation. Soju is a conventional spirit that dominates South Korea, while foreign liquor like brandy, vodka, and whiskey have become popular, particularly among youth and urban families. The demand is fueled by a combination of contemporary drinking culture, increased cocktail phenomena, and greater demand for premium and foreign labels. Domestic distillers as well as international players are putting money into experiential marketing, packaging, and brand development to reach an evolved consumer set.

Report Coverage

This research report categorizes the market for the South Korea distilled spirits market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea distilled spirits market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the South Korea distilled spirits market.

Driving Factors

Korea's evolving drinking culture, particularly among millennials and Gen Z, is shifting from traditional mass-produced alcohol to craft and premium spirits. The expansion of Western-style bars, the rise of cocktail culture, and the demand for artisanal products have encouraged diversification in distilled spirit offerings. Government initiatives promoting Korean traditional spirits like craft soju and takju as cultural exports have added momentum. Additionally, growth in food service and delivery apps has boosted at-home spirit consumption and retail demand.

Restraining Factors

In the face of growing demand for high-quality spirits, South Korea's distilled spirits sector is plagued by growing health consciousness and government spirits taxes. Off-trade shoppers are substituting moderate consumption and low-strength beverages, limiting high-ABV spirit sales. Dominance by mass-market brands soju and beer, also makes it more difficult for new players and specialty imported brands to access solid market penetration due to the lack of comprehensive distribution networks or cultural recognition.

Market Segmentation

The South Korea Distilled Spirits Market share is classified by product type and distribution channel.

• The soju segment dominated the market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea Distilled Spirits Market is segmented by product type into whiskey, soju, vodka, brandy, rum, gin, and others. Among these, the soju segment dominates the South Korea Distilled Spirits Market, accounting for the highest market share in recent years. Soju is South Korea's most culture-based and ubiquitous spirit, traditionally consumed in official and informal social affairs. With its affordability, low strength, and extensive retailing, it is a liquor for regular drinking by much of the population. During the past few years, the category of the product has expanded with fruit-flavored products targeting younger women and female consumers, and top-quality craft soju brands utilizing traditional distillation methods and indigenous rice cultivation in increasingly popular.

• The off-trade segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea Distilled Spirits Market is segmented by distribution channel into on-trade and off-trade. Among these, the off-trade segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The post-pandemic trend of home drinking has played a major role in the retail sales of spirits. People today more and more prefer to buy spirits via offline channels such as E-Mart and GS25, or online retailers such as Coupang, Market Kurly, and SSG.com. New packaging styles like ready-to-drink cocktails and upscale boxed spirits-friendly gifting have also improved the appeal of this channel among consumers.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea Distilled Spirits Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• HiteJinro Co., Ltd.
• Lotte Chilsung Beverage Co., Ltd.
• Diageo Korea
• Pernod Ricard Korea
• Bacardi Korea
• Golden Blue Co., Ltd.
• Muhak Co., Ltd.
• Kumbokju
• Andong Soju
• Others

Recent Development

• In February 2025, South Korea’s craft liquor market is poised for significant expansion following the government’s decision to allow small distilleries to produce soju and whiskey. Until now, small-scale liquor manufacturing licenses were limited to fermented alcoholic beverages such as beer, makgeolli, and fruit wines. The policy shift, announced in Feb during an economic ministers’ meeting, will extend small-scale liquor manufacturing licenses to include distilled liquors such as soju and whiskey. The move is expected to broaden the availability of craft soju and whiskey, mirroring the rise of craft beer, which has become widely accessible at convenience stores and supermarkets.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

 Market Segment

This study forecasts revenue at South Korea, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the South Korea Distilled Spirits Market based on the below-mentioned segments:

South Korea Distilled Spirits Market, By Product Type

• Whiskey
• Soju
• Vodka
• Brandy
• Rum
• Gin
• Others

South Korea Distilled Spirits Market, By Distribution Channel

• On-Trade
• Off-Trade