South Korea: Competition on beer market heating up as Guinness introduces new non-alcoholic beer in Korea

Competition in the domestic non-alcoholic beer market is heating up, with Guinness introducing non-alcoholic beer in Korea for the first time in Asia as the trend of "Hellcy Pleasure" continues, with growing interest in health, mk.co.kr reported on April 29.

According to the industry on the 29th, the domestic non-alcoholic beer market is estimated to be about 60 billion won. Under the current law, if the alcohol content is less than 1%, the expression non-alcoholic or non-alcoholic can be used.

Although the share of non-alcoholic beer in the total beer market, which amounts to about 4 trillion won, is still insignificant, the market's growth is steep considering that it was only 20 billion won in 2021.

The reason why non-alcoholic beer is so popular is because the trend of emphasizing the lifestyle of health and well-being continues. In particular, young female consumers tend to prefer non-alcoholic beverages with low calories and sugar content.

Non-alcoholic alcoholic beverages are showing high growth even when alcohol consumption is already declining overall in Europe. According to market research firm IMARC, Europe's non-alcoholic wine and beer market reached 8.6 billion euros (about 12 trillion won) last year and is expected to grow to 15.4 billion euros (about 22 trillion won) by 2032.

In addition, the fact that non-alcoholic products will be allowed to be sold to liquor wholesalers from next month is also expected to be a boon to the expansion of the market. Earlier, the Ministry of Strategy and Finance decided to revise the Enforcement Decree of the Liquor License Act to expand the scope of the business to supply non-alcoholic or non-alcoholic beverages to restaurants along with alcohol at general liquor wholesalers and liquor manufacturers' direct stores.

Diageo Korea's world's No. 1 stout brand, Guinness, will launch its first non-alcoholic beer "Guiness 0.0" in Korea for the first time in Asia.

The Guinness 0.0 contains Widget, a bead that acts as a nitrogenization of beer, in the same way as the existing "Guinness Draft" product, so you can feel the unique softness and creaminess of Guinness.

Guinness 0.0 is a 440mL (75Kcal) canned beer product with an alcohol content of less than 0.05%, which will be available for purchase at large discount stores and convenience stores nationwide from May. It will also be sold on online channels such as Naver Smart Store and Coupang.

TSINGTAO, a global premium beer imported and distributed by Beer K, introduced non-alcoholic beer in Korea in 2020 for the first time as an imported beer brand. In March last year, it launched 'Qingtao Non-Alcoholic Lemon' and is speeding up its efforts to target the non-alcoholic beer market.

Qingdao Non-Alcoholic Lemon is a product that adds thick lemon juice to Qingdao Non-Alcoholic, and adds real lemon juice rather than artificial lemon flavor to realize the freshness of fresh lemons. The balanced acidity and sweetness harmonize with the soft carbonation to provide a new flavor and boast low calories of only 60 kcal per can (330ml).

OB Beer has a total of four types, including "Cas 0.0," "Hogarden Zero," "Birdweiser Zero," and "Hoegaarden 0.0 Rose," and is targeting the market with various products.

Obi Beer's non-alcoholic beverage products use the same raw materials as regular beer, undergo the same fermentation and aging process, and then only alcohol is extracted with an alcohol extractor in the final filtration stage, so their frequency is less than 0.05%.

Hite Jinro Beverage is leading the market by launching "Hite Zero 0.00" in November 2012 for the first time in Korea. In 2021, it underwent a major renewal and adopted the all-free concept, which is zero alcohol, calories, and sugars for the first time in Korea. Most beer-flavored beverages on the market are non-alcoholic products containing less than 1% alcohol, while HiteZero 0.00 is 0.00% non-alcoholic products that contain no alcohol at all. As of the end of December last year, cumulative sales amounted to 138.5 million cans (based on 350mL cans conversion).

An official of Hite Jinro Beverage said, "In line with the recent health leisure trend, the demand for all-free Hite Zero 0.00 for exercise and diet is increasing. We plan to solidify our market position through a product lineup that reflects consumer lifestyles and needs and various marketing activities."

30 April, 2024