Soju Market Size, Share, Growth, and Industry Analysis, By Type (Distilled Soju & Diluted Soju), By Application (Below 20 Years Old, 20-40 Years Old, 40-60 Years Old & Above 60 Years Old) and Regional Forecast to 2032

SOJU MARKET REPORT OVERVIEW

The global Soju market size was USD 3250.9 million in 2023 and the market is projected to touch USD 3989.16 million by 2032, exhibiting a CAGR of 2.3% during the forecast period.  

Korean distilled alcoholic beverage soju can be produced exclusively from Rice, wheat, sweet potatoes or Malted barley. Dry powder — a departure from the usual grainy texture — and its pasty, pale blue colour combined with its familiar, inoffensive taste and smell. Soju has a lot of social relevance to Korean people today and it is consumed with meals, parties and other functions. It has also become popular in many countries where it is now a staple in most bar and restaurants that feature Korean cuisine. Soju has such a big market because it can either be consumed as a spirit or a component in cocktails. In addition, other customers interested in appealing drinking aqueous products have been attracted to the market through other aspects like flavoring and packaging.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The global soju markets were affected by COVID-19. First of all, demand fell when clubs, restaurants as well as entertaining facilities and amenities were shut down because of the spread of COVID-19 and restrictions on public gatherings and contacts. Other disturbances that affected production and distribution include changes in customers’ behavior as well as disruptions in the supply chain. But, in a slow process, sales recovered as restrictions eased and the public got used to the new lower rates, especially retail and internet sales. Some brands used this situation to their benefit, promoting the use of fabric softeners at home, as well as introducing new successful designs of packaging. Thus, Soju is such an enterprise that was tenacious in the face of difficulties and utilized its advantage of being an alcohol senda that suits home drinking and online networking; however, some adjustments had to be made to cater for altered consumer tastes and market conditions.

LATEST TRENDS

"Growing Demand for Flavored Soju Variants Drive Market Growth"

The latest trend in the global Soju market is the Growing Demand for Flavored Soju. The role of flavored soju is more dominant while pulling the overall soju market as the diversity and the spectrum of consumers get broader. Originally, soju enjoyed its fame for its rather tasteless perception, however, new intricate tastes such as peach, grapefruit or honey become popular nowadays. This shift targets the market dynamism particularly to the young generation with a desire for fun and differentiated experience of the product. This is so because as more companies continue to develop new tasting variants and adopt new marketing techniques, soju is being consumed by more people and sales are increasing. They, therefore, show how changing preferences are altering the consumption of drinks and fueling the market’s expansion.

SOJU MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Distilled Soju & Diluted Soju.

• Distilled Soju: The strongly and purely flavored soju is made by distilled soju and it is also prepared by distillation process more than one. Some can be consumed neat or used in typical Korean mixed drinks; it has a fairly decent alcohol percentage and a satisfying finish that should be perfect for the aficionados who wish to get true to life Korean spirit.

• Diluted Soju: The other variant of soju, the diluted version, brings forth a less strong taste primarily because of the mixture of water. This version is for a neat drink and party dinners since the flavor is slightly weaker and does not strain the throat but retains the soju’s flavour profile.

By Application

Based on application the global market can be categorized into Below 20 Years Old, 20-40 Years Old, 40-60 Years Old & Above 60 Years Old.

• Below 20 Years Old: The soju for the lowly consumers from age 0 to 20 is scarce as this age bracket has a legal ban on the use of alcohol.

• 20-40 Years Old: This segment is the primary consumers of soju with a focus on the original and the fashionable soju tastes. It is for these two reasons that consumers are attracted to soju consumers are also involved in different occasions and when consuming soju occasions, it is usually in different forms and uses in cuisines.

• 40-60 Years Old: The consumers who fall under this age bracket prefer to stick to the original brands of soju and these are the prominent brands. Regarding soju, they are more quality-conscious and prefer it better as compared to other alcoholic drinks using it mainly in more formal dinners or in restaurants offering authentic Korean cuisine.

• Above 60 Years Old: Market preferences regarding soju drinks for those above sixty years of age are inclined towards the conventional types of soju. This demographic appreciates the traditional side of soju and their use of it mostly in social or family functions."  "

DRIVING FACTORS

Rising Disposable Incomes to Increase the Demand of Market

One of the key driving factors in the global Soju market growth is Rising Disposable Incomes. The Asians’ disposable income is on the rise, especially in countries such as China and South Korea whereby consumption of luxurious and leisure products such as alcoholic like Soju is encouraged. It is illustrated in this trend to show that people are shifting their preferences from desired goods that are cheaper, more affordable and within reach, to goods that make life better and more expensive. If suppliers have more financial freedom, then the customer will spend more of his/her available money to purchase the upgraded products and rather enjoy the remaining part of the day by buying alcohol for social purposes. This increase in expenditure is an indication of how the consumer environment is shifting in these areas where elements of luxury and the elements of experience economy are gaining traction due to improvements in the economic circumstances on the ground.

"Shifting Cultural Trends to Propel Market Growth "

Another driving factor in the global Soju market is the Shifting Cultural Trends. New cultural trends point to the fact that youth of the present generation is more experimental, and will not hesitate to try out a wider range of alcoholic products. Today it is so welcomed because of its fashionable and versatile image. The type of events that suit occasions like formal dinners and dances or simple gatherings are suitable for the active lifestyles of younger customers. Because of this group’s adventurous and sophisticated characteristics and their preference to consume the latest products, Soju is gradually gaining popularity. Modern drinkers who wish to imbibe themselves with drinks that are not only genuine but also classy will always consider Cooper as their first and most preferred choice.

RESTRAINING FACTORS

"Limited Durability and Longevity to Potentially Impede Market Growth"

One of the key restraining factors in the global Soju market is the limited durability and longevity of these products. A main issue in the soju market is the large number of regulatory restrictions which greatly reduce market growth and development. Abstinence regulations, and restrictions on Alcoholic content, Advertising and distribution have limited producers to strict sets of measures, restricting creativity in the design of products. Furthermore, high taxes and import barriers that are set in place to help local firms negate the international market appeal. Another factor that goes in favor of restricted market growth is Advertising restrictions which reduce awareness and involvement. These restraints escalate the level of competition for both incumbent firms as well as new entrants hence limiting the potential growth of soju within its native and foreign markets.

SOJU MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"North America Region Dominating the Market Due to Growing Interest in Korean Culture and Food"

North America has emerged as the most dominant region in the global Soju market share due to several factors. The current trend of Soju in North America has been propelled by increased demand for Korean brands of foods and beverages. A sign of this phenomenon is the gradual expansion of Soju from the niche of high-class joints to hip bars as well as general grocery stores. A new element, which has contributed to this rise, is the availability of Soju in different flavors that attract customers who are in search of a new taste. The added flavors such as Peach, Grapefruit and Lychee are slowly finding a place in the market thereby expanding the social context where Soju is consumed further. As a result, Soju manufacturers can now see that North America has a bright future market full of prospects and opportunities to get into in the future years.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Leveraging Innovative Strategies and Tapping Into Emerging Consumer Trends"

There are significant changes seen in the soju market from the key industry players since they are adopting new strategies and exploring new consumers. Through investments made in marketing, product differentiation, and international market expansion, Soju is not only stereoscopically appealing to audiences in South Korea but to every part of the globe. Through their emphasis on quality, flavour diversification and effective channel development, these giants are effectively enhancing the industry position of soju as well as the global standing of soju enhancing the overall dynamics of the spirits category.

List of Market Players Profiled

• HiteJinro (South Korea)
• Lotte Liquor (South Korea)
• Muhak (South Korea)
• C1 Soju (South Korea)
• Chungbuk (South Korea)
• Hallasan (South Korea)
• Andong (South Korea)

INDUSTRIAL DEVELOPMENT

March 2023: The Mackiss Co., a South Korean liquor company located in Chungcheong Province, the country's most beloved alcoholic beverage, expanded its business by introducing a product with an alcohol by volume (ABV) below 15 per cent. This innovative offering will captivate the market and appeal to a wider range of consumers.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.