Korea's Liquor Spending Drops Most in Seven Years

Q1 Alcohol Spending Falls 9%, Steepest Drop in Seven Years Households in Their 50s Lead Decline as All Age Groups Cut Back 'Sober Curious' Trend Spreads, Boosting Non-Alcoholic Drinks

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By Kang Ji-won
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Stock photo provided to aid understanding of the article. Clipart Korea - Seoul Economic Daily Finance News from South Korea
Stock photo provided to aid understanding of the article. Clipart Korea

Korea's domestic alcohol consumption is on a clear downward trajectory. Real household spending on liquor in the first quarter posted its sharpest contraction in seven years, extending a decline that has now stretched to 10 consecutive quarters.

Both Real and Nominal Spending Shrink, Holiday Boost Fades

According to data from the Korea Statistics Data Agency's national statistics portal (KOSIS) and the household trend survey released Tuesday, monthly average real spending on liquor per household stood at 13,000 won in the first quarter, down 9.0% from a year earlier. The figure, which excludes price fluctuations, marked the largest drop since the quarterly statistics were revised in 2019.

Real liquor spending has been in negative territory for 10 straight quarters since the fourth quarter of 2023, when it fell 4.4%. While quarters containing the Lunar New Year or Chuseok holidays traditionally saw a pickup in alcohol consumption, even that seasonal pattern has recently faded.

The same trend is evident in nominal spending, which includes price increases. Nominal liquor spending in the first quarter contracted 7.5% from a year earlier, marking eight consecutive quarters of decline. Real spending on tobacco, by contrast, rose 1.5%, maintaining year-on-year growth for a fourth straight quarter.

Households in Their 50s Lead Drop as Shipments Fall 17% Over a Decade

By age group, households headed by people in their 50s posted a 10.2% drop in liquor spending, the steepest decline among all age brackets. Households aged 60 and over fell 6.9%, those aged 39 and under dropped 5.7%, and those in their 40s declined 5.1%. Households aged 39 and under have now seen five consecutive quarters of declines, while those in their 40s have logged nine straight quarters of contraction.

The picture is no different beyond household-level indicators. Domestic alcohol shipments in 2024 were calculated at 3.151 million kiloliters, down 17.3% from 3.808 million kiloliters in 2014.

Signs of change are also emerging in heavy-drinking behavior. The monthly binge drinking rate refers to the share of people who, over the past year, drank at least once a month seven or more glasses (or five cans of beer) for men, or five or more glasses (or three cans of beer) for women in a single sitting.

According to data from the Korea Disease Control and Prevention Agency, the median monthly binge drinking rate across the country's 17 cities and provinces last year was 33.8%. The figure had climbed for two consecutive years from 31.7% in 2021 to 35.8% in 2023, before retreating for two straight years.

Analysts say the shift aligns with a broader restructuring of after-work gatherings and drinking culture following COVID-19, alongside the spread of health-conscious lifestyles. As the "sober curious" culture of distancing oneself from alcohol takes hold, low- and non-alcoholic beverages have also emerged as a new trend. In the household trend survey, however, non-alcoholic drinks are classified as liquor spending.

Health Insurance Funds Drained by Alcohol and Tobacco: 28 Trillion Won Spent in Five Years

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Original reporting by Kang Ji-won for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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