In 2025, soft drinks in South Korea experienced static off-trade volumes, but significant polarisation. Health-driven, functional, and zero sugar options saw robust growth, while traditional categories like juice and concentrates declined, reflecting heightened consumer awareness of wellness. Inflation spurred a shift towards private label and varied pack sizes, demanding compelling health or lifestyle benefits from premium brands. Innovation was deeply tied to cultural trends and emotional reso
South Korea
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In South Korea, bottled water market experienced a slight off-trade volume decline in 2025, but sales remained robust, supported by smaller households and online convenience. Flavoured and carbonated varieties drove growth, appealing as healthier alternatives to sugary soft drinks. Kwang Dong Pharm led, while Woongjin Food showed dynamic growth through digital strategies and flavour innovation. Private label brands also gained significant share. Retail e-commerce was the dominant channel, althou
Asian speciality drinks saw modest growth in South Korea in off-trade volume terms in 2025, driven by K-culture's influence and the introduction of zero sugar options. While established brands like Lotte and Woongjin adapted with sugar-free variants after sales declines, KT&G's JungKwanJang led growth by capitalising on health and wellness trends and online exclusives. The "loconomy" trend also spurred regional product innovation. Hypermarkets remained crucial for distribution, yet e-commerce is
RTD coffee declined in South Korea in off-trade volume terms in 2025, due to consumer fatigue, rising costs, and limited innovation. Brands responded with large-format, value-driven products and a premiumisation strategy, exemplified by indulgent flavours and eco-friendly packaging. Lotte led amidst fierce rivalry from franchised brands like Starbucks in 2025. While convenience stores remained dominant in distribution, retail e-commerce was the fastest-growing channel, crucial for innovation and
Concentrates in South Korea experienced an off-trade RTD volume decline in 2025, as consumers increasingly favoured convenient RTD alternatives. Liquid concentrates, particularly apple cider vinegar variants, showed more resilience, while powder concentrates faced challenges from waning interest in kombucha. Lipton, Teazen, and Lingtea led concentrates in 2025, although Teazen saw a significant decline due to kombucha fatigue. Hypermarkets remained the largest distribution channel, but retail e-
Carbonates in South Korea was significantly influenced by the "slow ageing" trend in 2025, driving robust growth for reduced sugar and zero-calorie options, despite emerging concerns about artificial sweeteners. Flavour innovation, exemplified by PepsiCo's mojito Pepsi Zero and Hite Jinro's tomato tonic, was also a key growth driver. Lotte Chilsung narrowed the gap with the leader Coca-Cola through strategic diversification, pack innovation, and transparency initiatives. Convenience stores led o
In 2025, RTD tea in South Korea saw notable growth, driven by health consciousness and a shift towards low and zero sugar, functional options. Carbonated RTD tea and kombucha led growth, appealing to younger, wellness-focused consumers. While convenience stores remained dominant, retail e-commerce was the fastest-growing channel, enabling brands to reach tech-savvy consumers with niche products. Leading players like Lotte Chilsung and Dongwon maintained strong positions, with Nongshim's Oi Ocha
Energy drinks in South Korea experienced strong, albeit moderating, growth in 2025, driven by a diversified consumer base, now including professionals and middle-aged individuals. Sales of reduced sugar variants surged due to health consciousness, although regular energy drinks still dominated. Hot 6 and Monster led the competitive landscape, innovating with zero sugar and new flavours, while retail e-commerce rapidly expanded as a key distribution channel alongside the dominant channel, conveni
Juice in South Korea declined in off-trade volume terms in 2025 as consumers are increasingly avoiding sugar, even scrutinising natural fruit sugars. This trend drove innovation towards zero/low sugar options, functional "drinkable supplements," and vegetable juices. The children's segment, however, experienced strong growth, fuelled by a significant increase in the birth rate, with brands like Paldo and Woongjin capitalising on this demographic shift despite ongoing debates about artificial swe
Sports drinks in South Korea saw robust growth in 2025, fuelled by outdoor activities, "Nomad Fitness", and public health drives. While traditional sugary options face scrutiny, zero sugar alternatives are emerging. Pocari Sweat, Gatorade, and Powerade together dominated in 2025, but Pocari Sweat lost share to other brands and other formats. Convenience stores remained key for on-the-go purchases, boosted by heatwaves and promotions, while retail e-commerce showed dynamism, as it facilitates bul
Breakfast cereals is seeing a polarised performance in 2025 with healthier options such as hot cereals thriving while products which are perceived to be full of sugar, such as children’s breakfast cereals see declining sales. Players are under pressure to reformulate their products as they aim to maintain relevance in an evolving landscape, while e-commerce presents opportunities to bring new ideas and products to the market
Sales of baked goods have seen steady growth in both value and volume terms in 2025. Volume growth has been fuelled by the increasing consumption occasions for bread and evolving trends. Efforts by leading players to attract younger demographics has also paid off. There is also a growing focus on healthier variants, though traditional claims such as low calorie lack traction.
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Overall, sales of processed fruit and vegetables have stagnated in 2025 which is in large part due to the perception that these products are less healthy than fresh produce. Nonetheless, there are still some positives with frozen fruit benefiting from its convenience, its lower price compared to fresh fruit and the perception that the freezing process helps to retain the product’s nutritional values. In terms of competition, private label has been the big winner in 2025.
Retail sales of rice, pasta and noodles are struggling for growth in 2025 with shifts in consumer purchasing behaviour impacting demand for traditional staples like rice and noodles. With volume sales stagnating some players are focusing on adding value to drive profits, such as through healthier variants or new flavour and format variations.
Processed meat, seafood and alternatives to meat has seen modest gains in current value terms in 2025. The category faces several challenges including rising input costs, increasing health concerns and changes in consumer lifestyle behaviours. In response, the leading players are having to innovate to meet the evolving needs of the market.
Economic pressures continue to limit volume gains in staple foods in 2025, with value growth being fuelled by a trend towards quality over quantity. Despite financial pressures, many consumers are showing growing concerns around the impact of their purchasing behaviour not only on their health, but also the health of the environment. This is encouraging players to offer healthier and more natural products, as well as switching to more sustainable packaging and production techniques.
Other hot drinks in South Korea saw low retail value growth in 2025, although retail volume sales continued to decline, as chocolate-based flavoured powder drinks saw challenges from rising cocoa prices and changing consumer preferences. Brands therefore innovated with low-sugar and functional products to attract consumers’ interest. In terms of distribution, retail e-commerce continued its steady rise, although offline retail continued to dominate. Other hot drinks is expected to see a retail v
Hot drinks in South Korea saw retail value growth in 2025, despite declining retail volumes. Category performances diverged, with tea growing due to the health trend and "small luxury" consumption, while instant coffee declined. Chocolate-based flavoured powder drinks faced pressure from Korea's low birth rate and demand for healthier options. The industry is expected to trend towards customisation, wellness, and experiential value in the forecast period, with brands adapting through innovation,
Coffee in South Korea saw marginal retail value growth in 2025, driven by demand for fresh coffee. Instant coffee declined due to the economic downturn and the rise of low-cost coffee chains. Consumers increasingly prefer high-quality, freshly brewed coffee and health-conscious options. Dongsuh Foods and Nestlé Korea led sales, with a focus on sustainability and innovation. Meanwhile, distribution channels are shifting, with hypermarkets and e-commerce growing. Coffee is expected to see retail v
Sauces, dips and condiments registered slower value growth over 2025, whilst volumes were stagnant. Premium lines are supporting value growth, with consumers enticed by unique tastes and flavours. Retail e-commerce is enticing consumers by providing a gateway to premium and niche sauces.
Tea in South Korea experienced substantial retail value growth in 2025, driven by increasing consumer interest in health and wellness. Green tea was a standout performer, fuelled by the "matcha-core" trend and the consumer focus on wellness and natural ingredients. Osulloc and Dongsuh focused on product launches to interest consumers, while retail e-commerce became the dominant distribution channel, driven by convenience and a wide product selection. Sales of tea are expected to continue to see
Edible oils in South Korea faces a mixed performance in 2025 shaped by rising health awareness and price volatility. Olive oil consumption continues to rise, due to its perceived health benefits, but this comes at the expense of refined oils which are traditionally used in home cooking.
In South Korea, both volume and value sales of sweet spreads have shown modest growth over 2025. This trend is largely fuelled by a rising interest in health-conscious eating and the ongoing westernisation of dietary habits.
Cooking ingredients and meals in South Korea is growing at a slower pace in 2025. Consumers are benefitting from a wider choice of products in premium and value segments, as brands and private label provide more sophisticated lines. Distribution is creating notable changes, led by retail e-commerce and the direct-to-consumer strategies of food manufacturers.
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