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CGA’s latest Consumer Pulse report highlights the scale of opportunities in the country’s bars and restaurants, with more than nine in ten (91%) consumers going out in the last month—3 percentage points more than in the previous survey. Some of these visitors are ready to trade up their purchases, and the number willing to do so has increased over the last 12 months in some categories—especially wine.
However, there are signs that other consumers are starting to trade down in many major categories. Numbers choosing premium brands have fallen by 5 percentage points or more in the soju, gin, liqueurs and beer segments, and other spirits like rum, vodka and whiskey have seen sales shift from upmarket to standard options. Overall, CGA’s data estimates that the number of potential premium consumption occasions has fallen by 14% since mid-2023.
Consumers need compelling reasons to choose premium brands, and CGA’s On Premise insights highlights three key factors that can motivate them: distinct flavours, strong and recognisable branding and a price that reflects the quality of the product. Two in five (41%) expect a premium choice to be either expertly prepared, containing high quality ingredients or unique to a venue, while rarity (33%) and a buzz (24%) are among the other top associations.
CGA’s consumer insights also provides expert insights into the top channels and occasions for premium drinks brands. More than a third (36%) of consumers say they are more likely to choose premium drinks in hotels, making it the most important route to buyers, followed by lounge bars, members’ clubs and holiday resorts. Over half (54%) say they are more likely to choose a premium brand on special occasions, and with celebrations (45%) and romantic meals (44%) popular too.
CGA’s survey of operators meanwhile flag ways for suppliers to gain premium brand listings. While price is important, brand quality, consistency and flavour are all bigger factors in their stocking decisions. Understanding the different needs of different venue types—like the importance of recommendations in lounge bars, or the value of good visibility in nightclubs—is essential.
So how can beverage brands keep their finger on the pulse of the market and outpace their competitors in South Korea’s premium market?
Coming to the market soon, CGA’s On Premise Measurement (OPM) solution delivers accurate and up-to-the-minute tracking of alcohol sales in bars and restaurants across South Korea. Already used by the world’s leading suppliers and distributors in markets across the world, it combines best-in-class data sources to analyse brand and category performance and help businesses understand their market share, distribution and performance by region, channel and much more.
Jaepil Sohn, CGA by NIQ’s client solutions director, South Korea, said: “South Korea has rich opportunities to launch and grow premium brands, but the pressure on consumers’ spending is undoubtedly making it harder. Many people are still ready to trial these options and trade up to them, but they want to be certain they will receive good enough quality and value. To earn their spend, suppliers need to target the right people with the right messages and adapt to the requirements of different channels and occasions. Investment in market intelligence has never been more important, and CGA is ready to support successful data-driven strategies.”
Jaepil Sohn
Discover how CGA by NIQ’s On Premise solutions can empower your beverage brand to thrive in South Korea’s On Premise sector. From targeted distribution lists to customized sales strategies and comprehensive market share tracking, CGA’s insights help you capitalize on evolving trends and consumer preferences. Contact us today to unlock your brand’s full potential!
Seize the opportunity to transform your brand’s On Premise strategy—watch the full webinar here! or Read the key takeaways from the webinar here.
