Fruit-flavored soju drives Korea’s alcohol exports

HiteJinro fruit soju products on sale at FujiMart in Hanoi, Vietnam. (HiteJinro)

Demand for South Korean fruit-flavored soju is soaring overseas, accounting for nearly 30 percent of the country’s entire alcohol exports in 2023.

According to the Korea Customs Service on Thursday, the country‘s fruit soju exports reached $91.59 million in 2023, accounting for 28.1 percent of total alcohol exports.

This is a significant increase from 2013, when exports accounted for a mere 0.5 percent of the entire alcohol shipments.

Exports of fruit-flavored soju accounted for a larger share than beer (23.5 percent). When combined with regular soju (31.1 percent), the two categories make up nearly 60 percent of the entire Korean liquor exports.

In the first eight months of this year, fruit soju exports totaled $66.98 million, up 9.7 percent from the same period last year.

The growing demand for fruit-flavored soju comes as the products have positioned themselves as an entry-level soju for foreigners.

Analysts also note that demand for various fruit-flavored soju is increasing as younger consumers around the world gravitate towards sweeter drinks like highballs and cocktails.

For manufacturers, adding fruit flavors is an attractive way to diversify their liquor portfolios without significant investment.

Korea’s top liquor maker HiteJinro Co. announced that its exports of fruit soju and other distilled spirits reached 79.2 billion won ($59.41 million) last year, up 32 percent from 2021.

HiteJinro, which celebrates its 100th anniversary this year, announced its Global Vision 2030 strategy in Hanoi, Vietnam, in July, sharing plans to expand its fruit soju portfolio globally.

Lotte Chilsung Beverage Co., which initiated the fruit soju trend in Korea with Soonhari, has also seen substantial growth in overseas markets.

Soonhari was first exported to the United States in 2016 and has since expanded into markets in Southeast Asia, including Thailand and Laos, and Europe.

The company’s fruit soju exports grew by an average of 23 percent over the three years since 2021.

Lotte Chilsung focuses on increasing localization by producing strategic products tailored to the tastes of consumers in different countries.

The company has developed nine export-specific flavors, including yuzu, peach, blueberry, and apple mango.

The Chum Churum Soonhari Apple Mango flavor, in particular, was created at the request of local wholesalers for new fruit flavors.

Oriental Brewery Co., which recently entered the soju business by acquiring Jeju Soju from Shinsegae L&B Co., also plans to expand its fruit soju exports.

Jeju Soju has been producing export-only fruit soju under original development manufacturing (ODM) contracts with Southeast Asian companies, including Him Soju in Vietnam.