IMARC Group has recently released a new research study titled “South Korea Craft Beer Market Report by Product Type (Ales, Lagers, and Others), Age Group (21-35 Years Old, 40-54 Years Old, 55 Years and Above), Distribution Channel (On-Trade, Off-Trade), and Region 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.

South Korea Craft Beer Market Overview

The South Korea craft beer market size was valued at 3699 million USD in 2024 and is projected to grow at a CAGR of 8.46% during the forecast period from 2025 to 2033. Growth is primarily driven by rising consumer demand for unique flavors, increasing disposable incomes, a growing number of microbreweries, supportive government regulations, and the influence of global craft beer trends. This expanding market reflects a vibrant craft beer culture supported by urban microbreweries and evolving consumer preferences.

Study Assumption Years

  • Base Year: 2024
  • Historical Year/Period: 2019-2024
  • Forecast Year/Period: 2025-2033

South Korea Craft Beer Market Key Takeaways

  • Current Market Size: 3699 million USD in 2024
  • CAGR: 8.46%
  • Forecast Period: 2025-2033
  • Increasing consumer preference for diverse and unique beer flavors, driving demand for artisanal and innovative craft beers.
  • Growth of microbreweries and brewpubs, especially in urban regions like Seoul and Busan, fostering community engagement and loyalty.
  • Supportive government regulations, including tax reforms and licensing requirements, facilitating market entry and competition.
  • Breweries experimenting with local ingredients and unconventional flavors to cater to adventurous palates.
  • Shift toward healthier living promoting low-calorie and low-alcohol craft beer varieties.

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Market Growth Factors

The South Korea craft beer market growth is fueled by an increasing consumer preference for diverse and unique beer flavors. Craft breweries meet this demand by offering a wide range of artisanal beers with innovative tastes such as India Pale Ales (IPAs), stouts, sours, and seasonal specialties. This expanding preference contrasts the historically lager-dominated beer market, reflecting the younger demographic's desire for unique sensory experiences. Additionally, global beer culture influences this trend by celebrating experimentation and diversity in brewing.

The proliferation of microbreweries and brewpubs particularly in urban centres like Seoul, Busan, and Jeju Island has bolstered the market. Data reveals that the number of microbreweries increased from 58 in 2014 to 85 in 2016. Brewpubs offer a unique experience combining brewing with social venues, enabling consumers to enjoy fresh beer and engage with the brewing community. This fosters a vibrant craft beer culture, enhancing brand loyalty and community interaction.

Supportive government regulations have significantly impacted market expansion. Tax reforms have reduced financial burdens on small breweries, enabling easier market entry and competition. Licensing requirements mandate minimum capacities for fermentation (250,000 liters) and holding tanks (500,000 liters), setting entry barriers but also ensuring market quality. Such policies encourage the expansion of craft beer production and sales, particularly in off-premise retail and wholesaling. This regulatory support, alongside growing consumer demand, underpins the market's robust growth.

Market Segmentation

By Product Type:

  • Ales: A broad category fermented at warmer temperatures using top-fermenting yeast, resulting in robust, complex flavors. Demand is driven by varieties like pale ales, IPAs, stouts, and porters featuring fruity and spicy notes popular among craft beer enthusiasts.
  • Lagers: Brewed at lower temperatures with bottom-fermenting yeast leading to slower fermentation, these beers have clean, crisp tastes with subtle flavors. Popular types include pilsners, helles, and bocks favored for their refreshing qualities.
  • Others: Not explicitly detailed in the source.

By Age Group:

  • 21-35 Years Old: Major market drivers, drawn by unique flavors, social experiences, and support for local products, highly engaged with digital media for discovery.
  • 40-54 Years Old: Appreciate quality and craftsmanship, often have higher disposable incomes, seeking premium and sophisticated drinking experiences.
  • 55 Years and Above: Increasingly exploring craft beer for its artisanal qualities, moderate alcohol content, and balanced flavors, preferring relaxed settings and valuing heritage and tradition.

By Distribution Channel:

  • On-Trade: Consumption in bars, restaurants, pubs, and hotels offering social and experiential settings with craft beers often served on tap. Demand surge is due to ambiance, expert staff, and food pairings enhancing the experience.
  • Off-Trade: Purchases from retail outlets including supermarkets, liquor stores, and online shops for home or private event consumption. Provides convenience and a personal setting to explore craft beers.

By Region:

  • Seoul Capital Area: Economic and cultural hub with vibrant craft beer scene, numerous microbreweries, brewpubs, and festivals. Diverse population drives demand for innovative premium craft beers.
  • Yeongnam (Southeastern Region): Industrial and commercial center with a growing craft beer market, supported by tourism and local breweries, popular for seaside brewpubs.
  • Honam (Southwestern Region): Known for cultural heritage and culinary traditions, expanding craft beer market focuses on local ingredients and traditional brewing.
  • Hoseo (Central Region): Educated consumer base interested in artisanal products and innovative brewing, local breweries cooperate with universities and research institutes.
  • Others: Not specifically detailed.

Regional Insights

The dominant region in the South Korea craft beer market is the Seoul Capital Area, which includes Seoul and its surrounding cities. This region serves as the country's economic and cultural hub and boasts a vibrant craft beer culture with numerous microbreweries, brewpubs, and craft beer festivals. Its diverse and cosmopolitan population fuels high demand for innovative and premium craft beer offerings, positioning it as the leading market in South Korea for craft beer.

Recent Developments & News

In May 2021, Jeju Beer Co., South Korea’s leading craft beer maker, announced ambitions to become one of the country's top four breweries by the end of 2022. Chief Executive Moon Hyuck-ki revealed plans to use proceeds from their initial public offering to enhance operational capabilities and expand market presence.

Competitive Landscape

The competitive landscape is characterized by a dynamic mix of small local breweries, innovative brewpubs, and established domestic beer companies entering the craft segment. Local breweries are prominent with unique, high-quality brews catering to evolving South Korean consumer tastes, utilizing artisanal techniques and local ingredients. Larger domestic breweries are launching craft-style beers to capitalize on trends. Collaborations among local and international breweries foster innovation and variety, driving market growth and diversification.

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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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