Soju gets weaker: Why South Korea's liquor industry keeps cutting alcohol content

Soju is getting milder. Even Chamisul Fresh, the market leader, has trimmed its alcohol content by 0.3 percentage points to 15.7%. Other soju brands have similarly fallen below 16%. Makers cite a consumer shift toward lower-alcohol drinks — though analysts also point to cost-cutting as a motive amid a slump in liquor sales.

Hite Jinro announced Monday it will lower the alcohol content of its flagship soju brand Chamisul Fresh from 16% to 15.7%, reflecting the trend toward lower-alcohol drinks and consumer demand for a cleaner taste. The reformulated Chamisul Fresh is set to go on sale through retail channels nationwide in mid-June.

The reformulation comes roughly two years and four months after the last update and was designed to respond to shifting drinking trends in the liquor market. Hite Jinro had previously reduced Chamisul Fresh's alcohol content from 16.5% to 16% in 2024. That same year, the company also launched Jinro Gold at 15.5%, a further reduction of 0.5 percentage points.

Other players in the industry have been moving in the same direction. Hite Jinro lowered the alcohol content of its Jinro brand from 16% to 15.7% in February. Lotte Chilsung cut its zero-sugar soju Saero from 16% to 15.7% in January and reduced Cheoeum Cheoreom to 16% in July last year.

The shift reflects a broader change in drinking culture. According to national health statistics released by the Korea Disease Control and Prevention Agency, the average daily alcohol intake among people in their 20s stood at 64.8 grams in 2024 — lower than the 66.8 grams recorded among those in their 60s. Young adults in their 20s, once the heaviest-drinking age group, now consume less alcohol than older generations. Among those aged 19 to 29, the share who drink rarely or less than once a month hit a record high of 56.0% in 2024.

Some analysts see the lower alcohol content as a cost-cutting measure as much as a consumer-driven one. Reducing soju's alcohol content by 0.1 percentage point is generally understood to save about 0.6 won in distilled spirit costs per bottle. Diluted soju is made by mixing distilled spirit — the base ingredient — with water and sweeteners. A lower alcohol level means less distilled spirit and more water, which directly reduces ingredient costs for manufacturers.

The financial results of soju makers have been deteriorating. Lotte Chilsung's operating profit last year fell 9.6% to 167.2 billion won (about $121 million) from 184.9 billion won the year before, while sales slipped 1.3% from 4.0245 trillion won to 3.9711 trillion won. Its liquor business was hit particularly hard, with operating profit dropping 18.8% to 28.2 billion won.

Hite Jinro fared no better. Its operating profit last year fell 17.2% year-on-year to 172.3 billion won, and the company posted an operating loss of 9.2 billion won in the fourth quarter — typically the industry's peak season due to year-end gatherings and parties. Operating profit in the first quarter of this year also fell 10.8% from the same period a year earlier.

Raising prices is not a straightforward option either, given the government's firm stance on keeping inflation in check. President Lee Jae-myung said Monday that hoarding and price-fixing must be met with consequences severe enough that companies feel their survival is at stake. "Thoroughly investigate and hold them strictly accountable," he said, adding that ministries should treat price stability as "the core prerequisite for stabilizing people's livelihoods" and devote their full efforts to it.

A separate report examines how university festival culture has changed since the government tightened enforcement of liquor tax regulations in 2019, with binge drinking giving way to a more health-conscious atmosphere on campuses — a shift further accelerated by the period of remote learning.

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https://biz.heraldcorp.com/article/10740702