Market Opportunity for Coopers Brewery in South Korea
Korea is well known for its drinking culture. According to the latest data from World Health Organization on alcohol consumption in 2011, South Korea ranked 13, with a total alcohol consumption of 14.8 litres per capita, higher than United Kingdom, Germany, Australia and United States. However, beer only contributes less than 15% to the total consumption, while spirits are the most popular choice among Koreans.(WHO, 2011)

Korean cultural has a long history of drinking tradition, with a great variety of tradition alcoholic beverages. Most of these traditional beverages, including Soju, a distilled spirit, are made from rice of sweet potatoes. They contain a very high alcohol by volume, generally around 30%-50%.(LIK, 2012) These tradition alcoholic beverages are especially popular among mid-age Koreans, however less attractive to young generations. Although it is believed that small volumes of alcohol might benefit health, data from South Korea National Health and Nutrition Examination indicates the clear relationship between alcohol use behavior and increased risk of hypertension, diabetes, dyslipidemia, abdominal obesity, and MetS among Korean population. Hence, beer is considered healthier. (Kim, 2011)

Comparing to Yakju and Soju, beer has a much shorter history in Korea. It was first introduced into Korea by Japanese in early 1910s. Today’s Korean beer market is dominant by two local companies: Hite-Jinro and OB, they provide similar taste in similar price range. It is also noticeable that only two locally produced beers are brewed from 100% barley malt. Apart from local products, foreign beers are in limited availability and very expensive before 2005. (LiK, 2012)

Beer market in South Korea is in constant growth since the 2002 World Cup. According to MarketLine, Over the past few years, South Korean