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Here are ten of the top takeaways from the presentation by Jaepil Sohn, CGA by NIQ’s client solutions director.
1 South Koreans love the On Premise
REACH highlights the affection for South Korea’s bars and restaurants—as places where connections are made, communities congregate and brands are built. Nearly two thirds (62%) of consumers say they visit the On Premise at least weekly, and a core group of 29% go at least three times a week.
2 Alcohol consumption is falling
CGA’s surveys have revealed a moderation of alcohol intake in countries around the world, and South Korea is no exception. While 13% of consumers say they are drinking more alcohol than they were a year ago, far more (37%) are consuming less—largely for health reasons. This has had a negative impact on beer and spirit volumes, but it’s also opening up new opportunities for no and low alcohol alternatives and soft drinks.
3 People are drinking less, but better
The trend for moderation means some consumers are now buying fewer drinks—but when they do spend money, they want good quality. Asked about their intentions with a fixed spend, 89% say they would buy either one, two or three premium or medium-quality drinks, while only 11% would buy four or five cheaper ones.
4 Consumers are habitual in their visits
In many regions surveyed by CGA, consumers are starting to go out earlier to eat and drink. However, only 11% are doing so in South Korea—less than half the number in other territories like North America (24%). This shows South Koreans are habitual in their use of the On Premise, and understanding people’s different needs at different parts of the day is crucial.
5 Rising prices have put focus on value
With costs rising for both consumers and businesses, close attention is being paid to value in the On Premise. Seven in ten (70%) South Koreans say they have noticed an increased in their costs over the past year, and 38% say value has become more important to them in that time. However, value doesn’t have to mean cheap. Two in five say value for money is something that’s worth the cost (41%) or is good quality (40%)—far more than those who associate it with offers or discounts (17%).
6 Some South Koreans are switching from spirits to long serves
REACH research shows a move away from cocktail and vodka consumption in South Korea—but what are these drinkers buying instead? Nearly half (47%) of them say they are ordering more beer—partly because long serves are perceived to deliver better value for money. Meanwhile more than a third (36%) of those who are drinking less of traditional spirits like vodka say they are switching to soju. However, suppliers can persuade people back to their previous spirits by communicating, especially through promotions like happy hours.
7 Bartenders’ recommendations are powerful
Asked about influences on their purchases, menus and recommendations from friends and family rank high—but bartenders are a powerful driver too. CGA’s South Korea Bartender Report shows nearly nine in ten (88%) staff recommend drinks every shift, and 87% say guests order those drink every or almost every time. It shows the importance to suppliers of close relationships with venues’ bar teams.
8 Values influence spending
South Korean consumers’ spending is also driven by their values. More than half (54%) say it’s important that the brands they buy align with their personal morals and values. Ethics are a big issue for businesses too, as 93% of operators around the world consider whether the brands they stock align with their venues’ values.
9 People want social currency
The REACH research shows how growing numbers of consumers are demanding memorable experiences that give them social currency and kudos. Nearly half (48%) of South Koreans say they expect hospitality venues to give them new or unique experiences. And with 94% of On Premise visitors using social media, it’s vital to demonstrate these experiences on platforms like Instagram and TikTok.
10 Drinkers are ready to try new things
For consumers, the On Premise is the home of experimentation and trial. Nearly half (46%) say they like to have different drinks in the On Premise than they do at home—and the figure is even higher at 65% of South Korea’s 20- to 34-year-olds. It makes bars the perfect place for NPD and activations.
Missed out on the webinar? Watch it for free here.
CGA by NIQ’s exclusive REACH research delivers in-depth analysis of consumers’ engagement with the On Premise in South Korea and nearly 40 more countries. To learn more about REACH and CGA’s full range of research capabilities, contact Jaepil Sohn here.
