E-Malt.com News article: Japan & South Korea: Japanese beer sales surge in South Korea

Sales of Japanese beer have surged to the forefront of Korea's imported beer market, with January to August import levels exceeding three times the volume seen in the same period last year — signaling a potential end to the nationwide Japan boycott movement that had impacted various Japanese products, including beer, the Korea JoongAng Daily reported on October 3.

The revival of Japanese beer market share can be attributed to the improved relations between Korea and Japan under the current Yoon Suk Yeol administration, coupled with increased travel to Japan following Covid-19 transitioning into an endemic.

Japanese beer imports from January to August amounted to 36,573 tons, comprising 21.9 percent of Korea's total beer imports, according to data from the Korea Customs Service on Tuesday. The import volume's year-on-year increased by 238.4 percent. Japanese beer has outpaced its competitors, surpassing import volumes of China at 32,153 tons, the Netherlands at 29,243 tons, Poland at 11,291 tons and Germany at 9,911 tons during this period.

The resurgence of the neighborhood nation's beer marks a notable turnaround from its recent fall.

From 2011 to 2018, it had consistently held the top position in annual imports. However, the tide shifted in 2019 when Japan implemented export restrictions in July following a Korean Supreme Court ruling related to compensation for forced labor victims. This led to a nationwide "No Japan" boycott movement in Korea, including a boycott of Japanese beer. In October 2019, the statistical data showed that the import of Japanese beer was effectively zero.

Last year, the import of Japanese beer amounted to 18,940 tons, comprising 8.8 percent of the total imports, ranking only third behind China at 46,504 tons and the Netherlands at 45,125 tons. It is poised to regain its status as the annual top import choice after a four-year hiatus this year.

Japanese beer makers are producing marketing along with the sales recovery in Korea.

Products like the Asahi Super Dry Draft Beer, introduced in Korea in May this year, garnered attention for its unique lid design that opens entirely, resembling canned food, and their emphasis on rich foam — with occasional scarcity reported until now.

Backed by its popularity, Lotte Asahi Liquor, the importing company, officially released the beer with a design tailored exclusively for the Korean market with hangul labeling on the can.

Sapporo and Suntory are also actively engaging in promotional activities, including pop-up stores in downtown Seoul and online and offline advertising campaigns.

The swift revival of Japanese beer's popularity in Korea can be attributed to several factors, with the most prominent being its robust price competitiveness.

Japanese beer stands out as a relatively affordable option, even within the realm of imported beers, with cans readily available for around 2,000 won ($1.47) per unit.

Furthermore, the historically low valuation of the yen, particularly in the wake of the endemic period, has provided a considerable boost to various facets of Japanese-related consumption.

Consequently, traveling to Japan has become a more cost-effective alternative for many consumers compared to domestic options. Individuals who have yearned for international travel are increasingly choosing Japan as their destination. From January to August, 4.32 million Koreans visited Japan, constituting the largest share of foreigners who visited Japan during this period.

Yet not all product categories have witnessed a resurgence in consumer sentiment. Japanese seafood imports, for instance, have experienced a continuous decline for five consecutive months since April.



03 October, 2023