Demand and Trends Analysis of Fusion Beverage in Korea

Analytical Study of Fusion Beverage in Korea from 2023 to 2033

The consumption of fusion beverage in Korea is estimated to display a modest CAGR of 6.1% through 2033. The sales of fusion beverage in Korea are expected to jump from USD 152.06 million in 2023 to USD 276.18 million by 2033.

Key players are leveraging the fusion beverage trend by developing distinct cocktails that attract adventurous consumer preferences and tastes. Additionally, players are focusing on the flavor profile and health quotient of fusion drinks to attract more customers. Manufacturers are expected to invest in this emerging category to gain significant returns in the future.

Attributes	Details
Industry Size of Fusion Beverage in Korea in 2023	USD 152.06 million
Expected Industry Size of Fusion Beverage in Korea by 2033	USD 276.18 million
Forecast CAGR between 2023 to 2033	6.1%

Top Trends Impacting the Sales of Fusion Beverage in Korea

• Increasing popularity of fusion drinks imbued with vital vitamins and minerals as health becomes a key focus for consumers in Korea.
• Leading manufacturers are adopting eco-friendly packaging to garner consumer interest and conserve the environment.
• Growing efforts by players to develop original flavor combinations that are pure and unadulterated.
• The emerging trend of low-calorie and alternative spirits is transforming the conventional spirits industry. The target customers for this trend are environmentally aware and health-conscious.
• The beverage industry is being influenced by a combination of distinct flavors from diverse cultures. This is opening opportunities to innovate novel taste sensations.
• A drift toward bottled and canned cocktails is shaking the RTD beverage industry, offering new experiences to busy on-the-go customers.
• The robust growth of supermarkets, hypermarkets, food outlets, malls, pubs, and bars is contributing to increasing product accessibility.

Implications of these Trends on Fusion Beverage in Korea

Beverage industry players in Korea are exploring new opportunities in the fusion and RTD categories of beverage. Experimentation in cocktails and mocktails is predicted to attract a younger and more experimental consumer base.

Players in the health and wellness industry can collaborate with spirits companies to provide organic, low-calorie, and eco-friendly options to customers who prioritize well-being and fitness.

Increasing numbers of manufacturers of fusion beverage are developing product concepts that contain healthful ingredients like nectars, fruit splashes, and smoothies. This is expected to influence a creative and healthy product positioning.

Category-wise Insights

Fusion Alcoholic Beverage to Acquire Prominent Share

Leading Product Type	Fusion Alcoholic Beverage
Value Share % (2023)	33%

The fusion alcoholic beverage segment is estimated to account for a value share of 33% in 2023. Increasing knowledge about new flavors and ingredients among Koreans is creating heightened demand for fusion alcoholic beverage. Greater information regarding new product innovations can be attributed to wider access to foreign media and more travel experiences. Further, increasing interest in mixology is creating demand for blended cocktails.

There is a growing demand for lighter, flavorful, and refreshing beverage. This provides opportunities for leading players to develop a concoction of Korean ingredients with refreshing and lighter flavors. In tandem with this, players are investing in marketing and promotional activities to garner consumer interest. Marketing initiatives are expected to increase product visibility in Korea.

On-trade Venues Offer Immersive Experiences to Consumers, Boosting its Consumption Levels

Leading Distribution Channel	On-trade
Value Share % (2023)	39%

The on-trade segment, as estimated by our analysts, is expected to reach 39% in 2023. The increasing accessibility of on-trade venues like cafes, restaurants, and bars, particularly in urban areas, is contributing to this segment's growth. As a result, more customers can try new fusion beverage to taste unique flavors.

An increasing number of younger consumers frequent these on-trade establishments, thus appreciating the sales of fusion drinks made from on-trade sites. Immersive experiences of on-trade venues also play a key role in increasing the consumption of fusion drinks. The overall atmosphere, ambiance, and service at on-trade venues can contribute to the enjoyment of fusion beverage.

Top Strategies Employed by Fusion Beverage Industry Players in Korea to Expand their Business

Fusion beverage industry players in Korea are concentrating on product innovation. This strategy aims to tap into a growing customer base for blended fusion drinks that combine traditional as well as modern flavors. Companies can be seen investing significantly in marketing campaigns to uplift awareness of fusion beverage. They are further developing robust concoctions to meet consumers' taste preferences.

Players are strengthening their distribution channels, such as online platforms and convenience stores, to boost accessibility. Moreover, leading firms are partnering with foodservice providers to offer their fusion beverage offerings in cafes and restaurants. This is projected to boost customer trials and reach more customers.

Key Developments

• In November 2023, San Francisco's Tenderloin announced that it is going to invite JooDang, which is a nighttime cocktail bar and dining space. The attractive menu of this bar, featuring Soju cocktails as well as Korean and Japanese flavors, is expected to tantalize guests.
• In May 2023, the Korean government announced an expansion of a pilot project cautioning consumers of unrestricted caffeine consumption. The main focus of this project is school-age adolescents.
• In July 2023, the Korean government published a nutritional information guidance document aligned with new reporting and labeling regulations. This is going to facilitate food and beverage manufacturers in the initial phase of transition.

Detailed Profiles of Leading Players Providing Fusion Beverage in Korea

Company Name	Company Particulars
Binggrae	Binggrae is a Korea-based food and beverage company that produces ice cream, snacks, milk products, etc. The company was founded way back in 1967.
Lotte Chilsung Beverage	The company is a drink manufacturer in Korea. The company offers a wide selection of soft drinks. Lotte Chilsung Beverage prides itself on having expertise in developing high-quality products.
Dongwon F&B	The company was founded in 2000 and it specializes in food products. The corporation follows the principle that healthy food is an effective medicine. Dongwon F&B aims to lead the Korean food culture.
Seoul Milk	The cooperative is headquartered in Seoul, Korea. It exports to various cities in China, including Shanghai, Beijing, Qingdao, Yanji, and Dalian. The company was founded in July 1937.
CJ CheilJedang	CJ CheilJedang Corporation is a Korea-based international food firm that develops food ingredients, frozen, ambient, and chilled packaged food products, biotechnology, and pharmaceuticals. Top brands of this company, include Hatbahn, Bibigo, and Gourmet.

Key Players Providing Fusion Beverage in Korea

• Binggrae
• Lotte Chilsung Beverage
• Dongwon F&B
• Seoul Milk
• CJ CheilJedang
• Others

Scope of Korea Fusion Beverage Industry Report

Attribute	Details
Estimated Industry Size of Fusion Beverage in Korea in 2023	USD 152.06 million
Projected Industry Size by 2033	USD 276.18 million
Anticipated CAGR between 2023 to 2033	6.1% CAGR
Historical Analysis of Demand for Fusion Beverage in Korea	2019 to 2023
Demand Forecast for Fusion Beverage in Korea	2023 to 2033
By Product Type	Fused coffee and tea, Carbonated Drinks, Fusion alcoholic Beverage, Fruit Juice, Energy and Sports Drinks, Others
By Distribution Channel	Off-trade (Grocers, Hypermarkets, Discounters, Online stores, Highly specialized retailers, Alcohol, confectionery, and Off-license stores, Supermarkets, Petrol stations), On-Trade (Bars, Pubs, and cafeterias, Restaurants, Hotels and resorts, Temporary retail points, mass events, Clubs, discos)
Report Coverage	Industry Size, Industry Trends, Analysis of Key Factors Influencing Fusion Beverage Consumption in Korea, Insights on Korea Players and their Industry Strategy in Korea, Ecosystem Analysis of Local and Regional Korea Providers
Key Companies Profiled	Binggrae; Lotte Chilsung Beverage; Dongwon F&B; Seoul Milk; CJ CheilJedang; Others

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Industry Analysis and Outlook 2018 to 2022 and Forecast, 2023 to 2033
• 5. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Product Type
  • 5.1. Fused coffee and tea
  • 5.2. Carbonated Drinks
  • 5.3. Fusion alcoholic Beverage
  • 5.4. Fruit Juice
  • 5.5. Energy and Sports Drinks
  • 5.6. Others
• 6. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel
  • 6.1. Off-Trade
    • 6.1.1. Grocers
    • 6.1.2. Hypermarkets
    • 6.1.3. Discounters
    • 6.1.4. Online stores
    • 6.1.5. Highly specialized retailers
    • 6.1.6. Alcohol, confectionery, and Off-license stores
    • 6.1.7. Supermarkets
    • 6.1.8. Petrol stations
  • 6.2. On-Trade
    • 6.2.1. Bars, Pubs, and Cafeterias
    • 6.2.2. Restaurants
    • 6.2.3. Hotels and Resorts
    • 6.2.4. Temporary Retail Points, Mass Events
    • 6.2.5. Clubs, Discos
• 7. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Region
  • 7.1. South Gyeongsang
  • 7.2. North Jeolla
  • 7.3. South Jeolla
  • 7.4. Jeju
  • 7.5. Rest of Korea
• 8. South Gyeongsang Fusion Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 9. North Jeolla Fusion Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 10. South Jeolla Fusion Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 11. Jeju Fusion Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 12. Rest of Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 13. Market Structure Analysis
• 14. Competition Analysis
  • 14.1. Lotte Chilsung Beverage Co., Ltd
  • 14.2. Hite Jinro Co., Ltd
  • 14.3. OKF Corporation
  • 14.4. ZICO Beverages
  • 14.5. Pepsico
  • 14.6. Coca-Cola
  • 14.7. Pocari
  • 14.8. Gatorade
  • 14.9. 100 Plus
  • 14.10. Power Ade
  • 14.11. Lucozade
• 15. Assumptions & Acronyms Used
• 16. Research Methodology