The taste for low-alcohol or non-alcoholic beers is growing fast, especially among younger drinkers

Gen Z consumers are spearheading a new consumption trend in South Korea, where non-alcoholic and alcohol-free beverages are rapidly gaining popularity, according to a recent report by The Korea Times.

Local official definitions categorise products containing under 1% alcohol as non-alcoholic, while those below 0.05% are considered alcohol-free.

Beer makers across the country have moved quickly to align with this shift, with Lotte Chilsung Beverage, one of Korea’s top three beer producers, introduced Kloud Non Alcoholic last month with alcohol content under 1%. Oriental Brewery (OB), known for its Cass brand, released Cass Lemon Squeeze 0.0 in November, containing less than 0.05% alcohol.

Both companies are aiming to target younger drinkers in restaurants and bars following a 2022 amendment to the Liquor Tax Act, which now permits non-alcoholic beverages at such venues.

Craft breweries are also adapting to meet evolving preferences. Jeju Beer Company, Korea’s largest craft brewer, plans to launch three new non-alcoholic offerings this year on top of its existing Jeju Nouveau and Jeju Nouveau Mango lines.

Moreover, it will discontinue its slower-selling conventional beers to boost production of non-alcoholic varieties; and is expanding its online distribution, which is legally allowed for products categorised as non-alcoholic. The company already ships to over 20 countries, citing strong demand for low-or non- alcohol brews among younger consumers in markets such as Russia.

Industry analysts link South Korea’s surge in non-alcoholic products to a broader global movement toward “NoLo” (non- or low-alcohol) options and a “sober curious” consumer base. Internationally, NoLo beer now makes up about 10% of Japan’s total liquor market, 7% in Germany, and has nearly tripled in sales in the United States since 2019.

Market researcher Euromonitor International reports that Korea’s non-alcoholic beer market grew from KRW41.5 billion (USD28.5 million) in 2021 to KRW64.4 billion in 2023 and is projecting it to surpass KRW100 billion by 2027. The state-run Korea Agro-Fisheries & Food Trade Corp estimates the domestic market could even reach KRW200 billion in the near future.