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Analysis

Winning in South Korea: Turning On-Premise pressure into brand growth

Analysis
Winning in South Korea: Turning On-Premise pressure into brand growth

Consumer Behavior

Korea has rich potential for beverage brand growth despite pressure on consumers’ spending, with millennials and premium categories among the key targets. 


Content

The state of play in Korea’s On-Premise

NIQ’s unique combination of sources highlights Koreans’ passion for bars and restaurants. Nearly nine in ten (88%) consumers typically visit the On-Premise, and 61% do so weekly. Encouragingly, these numbers are up year-on-year, and they are also slightly ahead of global averages. Spending has risen too, by 8% to an average of ₩254,288 per month. 

However, some Koreans are cutting back on their On-Premise visits as household costs are rising fast. Total visitation has dropped by 8.1% in the last year, and while nearly a fifth (18%) of consumers expect to go out more often over the next year, a higher number (22%) plan to go out less. Nearly three quarters (73%) say their disposable incomes have either fallen or stayed the same in the last 12 months.  

Pressure on spending is being amplified by high inflation in businesses’ costs and heavy competition for consumers’ attention. This makes it vital for operators and suppliers to understand the latest trends in Korea’s market and grasp opportunities when they emerge. 

Drinks categories: Ups and downs 

The spending squeeze has pushed volumes of spirits and soju in 2025 to 10.6% below the levels of 2024, while beer was down by 8.1%. Some of these sales are shifting to at-home consumption, as Off-Premise volumes in these three categories have held up better. Bars and restaurants are vital platforms for influencing these Off-Premise sales, because 60% of consumers are likely to repurchase a drink to consume at home if they enjoy it while they are out. It’s clear that the On-Premise is where brand preferences are born.

While overall sales are contracting, there are some positive segments. For example, tequila, gin and single-malt whisky sales all grew in the On-Premise in 2025, with tequila rising in the Off-Premise as well. Single malt’s success indicates that premiumisation is still active in Korea, with many premium brands outperforming the market, and just over a third (35%) of consumers saying they are likely to pay extra for a better quality drink. Highballs are another hotspot, with sales jumping by 18.1% in the Off-Premise in 2025. 

Premium drinks and highballs are both particularly popular among millennials, who have relatively high spending levels and have reduced their outgoings less than other cohorts. Because they are also less likely than average to stay loyal to brands, there are sizeable opportunities to secure trial among millennials. 

Finding the right channels to play in

When planning On-Premise strategies, it’s essential to track not just what Korean consumers want but where. NIQ’s OPUS data emphasises the central role of food-led venues, which account for 58% of all occasions in the On-Premise. Visits to channels including traditional and BBQ restaurants held up reasonably well in 2025, but many more consumers reduced their trips to pubs and bars—an indication that people with limited budgets are prioritising dining out over drinking out at the moment. 

Wherever Korean consumers visit, there are ample opportunities to influence their decisions. More than four in five (83%) say they are open to influences in lounge bars, and two in five (40%) haven’t decided which category or brand to buy before they step inside. Brands that identify the right in-venue touchpoints to influence purchases can achieve excellent sales uplifts. 

From Korea to the rest of the world

Success in Korea can also help brands to improve their visibility around the world. The country is benefiting from surging international visitor numbers, which has a double benefit. First, increased tourist footfall is helping to make up for a flattening of Koreans’ visits to bars and restaurants. And second, tourists who buy and enjoy Korean brands are likely to purchase them when they get back home. For drinks like soju, baekseju, Cheongju, this opens up great potential for growth—not just domestically but globally. 


NIQ’s exclusive On-Premise Measurement (OPM) solution provides expert breakdowns of brand and category sales performance. Analysis is enhanced by the On-Premise User Survey (OPUS) of Korean consumers, as well as NIQ RSM Market Track, which measures offline FMCG sales across Korea. 

Ready to win in South Korea?

NIQ’s best-in-class suite of research tools provide suppliers with the tools they need to succeed in Korea’s On-Premise and Off-Premise. From sales measurement to consumer understanding to outlet planning, the solutions provide expert insights for powerful, data-driven strategies. 

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