'Who drinks somaek anymore?' Why Gen Z is turning away from alcohol

The liquor market is being reshaped as consumption of traditional alcoholic beverages such as soju and beer continues to slump and a low-alcohol trend gains traction, particularly among younger consumers. Non-alcoholic and low-alcohol beer are emerging as new growth drivers for the industry.

A survey of 1,347 Generation Z job seekers — those born between 1997 and 2011 — conducted by recruitment platform Catch from July 27 to July 31 found that 42% said they "never drink," the single largest response. Drinking frequency was also low: 24% said they drink once or twice a month, and 20% said once every two to three months or less. Only 14% said they drink at least once a week, and just 2% said three or more times a week.

Even among those who do drink, the tendency to stop well short of intoxication was clear. When drinkers were asked how much they typically consume at a gathering, 63% said they drink "just enough to feel a slight buzz" — the most common response — while 29% said they "barely touch it." Only 8% said they drink until fully intoxicated. Meanwhile, 59% of drinkers said they go out for drinks less often than they used to.

The biggest reason for cutting back or abstaining was personal preference rather than health. More than half — 53% — said they simply "don't like alcohol," followed by "health and weight management" at 19%, "avoiding hangovers and managing next-day condition" at 16%, and "cost" at 6%.

Data from the Korea Disease Control and Prevention Agency's national health statistics show that in 2024, adults in their 20s consumed an average of 64.8 grams of alcohol per day — less than those in their 60s, who averaged 66.8 grams. Young people in their 20s, once the heaviest-drinking age group, now drink less than older generations. The share of 19-to-29-year-olds who drink rarely or no more than once a month also hit a record high of 56.0 percent in 2024.

The shift is showing up in industry earnings. Hite Jinro posted consolidated sales of 618.6 billion won ($437 million) in the second quarter of this year, down 4.3 percent year on year. Operating profit edged up just 0.7 percent from the same period last year to 64.9 billion won. Soju sales rose 0.1 percent to 382.7 billion won, but beer sales fell 15.3 percent, dropping from 208.1 billion won to 176.3 billion won.

In response, liquor makers have begun retooling their strategies, starting with lowering the alcohol content of their flagship soju products. Hite Jinro reduced the alcohol content of its leading soju brand Chamisul Fresh from 16 degrees to 15.7 degrees in June, and did the same for its Jinro brand in February. Lotte Chilsung also cut the alcohol content of its zero-sugar soju Saero from 16 degrees to 15.7 degrees in January.

Non-alcoholic and alcohol-free beer launches have also accelerated. OB Beer's Cass brand, which started with Cass Zero in 2020, has since expanded its portfolio to include Cass All Zero, Cass 0.0 and Cass Lemon Squeeze Zero. OB Beer's non-alcoholic beer sales grew 27.7 percent in the first quarter of this year compared with the same period last year. Hite Jinro introduced a canned version of its non-alcoholic beer Terra Zero in March and expanded the lineup to bottles in June. Lotte Chilsung launched Cloud Nonalcoholic, a unified brand consolidating its existing non-alcoholic and alcohol-free beer offerings.