Brewers in race to capture summer consumers with low-alcohol beers

[Courtesy of BGF Retail Co.]

As South Korea’s beer industry enters its peak summer season, a new trend is emerging: low-sugar, low-alcohol, and low-calorie beers.

This shift aligns with the “healthy pleasure” trend gaining traction among the young consumers who are increasingly favoring lighter beers over the traditional 4.5 percent alcohol content brews.

CU convenience store announced on Sunday that the newly launched 1.5 Degree Beer, introduced on May 8, sold over 8,000 units by May 16.

This beer has quickly risen to the fifth spot in sales among 15 domestic beers, particularly resonating with younger consumers.

Sales data showed that 20-somethings accounted for 50.7 percent of its sales, followed by those in their 30s at 38.4 percent. This contrasts with the overall domestic beer sales where the 30s demographic leads.

The trend towards no and low alcohol products is rapidly growing, especially among those who enjoy drinking at home. This has led beer companies to roll out a variety of related products. These include zero-alcohol beers, which boast no calories or sugar, and low-calorie beers with reduced sugar and carbohydrate content compared to regular beers.

Oriental Brewery recently launched Michelob ULTRA, a premium low-calorie beer originally introduced in the U.S. in 2002.

With just 89 kcal per 330ml, Michelob ULTRA contains half the calories of a standard 355ml beer can (150 kcal).

“Michelob ULTRA’s light body and refreshing taste have made it the second best-selling beer in the U.S., and its 4.2 percent alcohol content makes it an attractive option for sports enthusiasts,” said a company spokesperson.

OB also leads the market with CASS Lite, which has 33 percent fewer calories than CASS Fresh at 25 kcal per 100ml and an alcohol content of 4.0 percent.

HiteJinro has also tapped into this market, relaunching its premium light beer S-Light last year. With an alcohol content of 3.8 percent and 26 kcal per 100ml, it is tailored to meet the demand for lighter beer options.

The non-alcoholic beer market is also expanding rapidly.

[Photo by Ahn Byung-joon]

According to Euromonitor, the market size has grown from 8.1 billion won ($6 million) in 2014 to 20 billion won in 2021 and is projected to reach approximately 60 billion won this year.

Leading domestic non-alcoholic beers like HiteJinro’s Hite Zero 0.00 and OB’s CASS 0.0 are fiercely competing with a “3 cans for 3,000 won” discount promotion at convenience stores this month.

The growing global market for non-alcoholic beers is also bringing more imported brands to Korea. Diageo Korea has introduced Guinness 0.0, the non-alcoholic version of the world’s best-selling stout, in Korea for the first time in Asia. Similarly, Tsingtao was the first imported beer brand to launch a non-alcoholic beer in Korea in 2020.