Soju Market Size, Share, Growth, and Industry Analysis, By Type (Distilled Soju and Diluted Soju), By Application (Below 20 Years Old, 20-40 Years Old, 40-60 Years Old and Above 60 Years Old), and Regional Forecast to 2034

SOJU MARKET OVERVIEW

The global soju market size was USD 3.39 billion in 2025 and is projected to touch USD 4.17 billion by 2034, exhibiting a CAGR of 2.3% during the forecast period.

Soju is clear, colourless distilled liquor from Korea, often called "burned liquor" due to its traditional distillation process. A native product since the 13th century, originally using rice, it has the influence of Mongols. During the 1960s, rice shortages prompted the adoption of alternative starches such as sweet potatoes, wheat and tapioca. Soju is currently produced in two broad categories, which are the traditional distilled soju, being more potent and flavorful, whilst the diluted soju is a low-cost product with its production involving a combination of water and ethanol with sweeteners. Alcohol level is usually between 10% to 25% proof, although certain artisanal varieties can be higher.

White soju is smooth, clean and lightly sweet tasting and the best way to describe this liquor would be a softer version of vodka. It is drunk straight in small shot glasses with Korean food, such as barbecue and stews. Koreans have a culture of drinking, and the drinking culture is all about respect thus, pouring or receiving bottles of liquor with both arms is considered important. Fruity soju such as peach, green grape, and grapefruit, has gained popularity in recent years, especially among the youth. Such methods of technology development, in conjunction with the globalisation of non-alcoholic foods and the increase in Korean pop culture and food, have helped to make soju one of the high-potential rivals within the global alcoholic beverage market.

GLOBAL CRISES IMPACTING SOJU MARKETCOVID-19 IMPACT

Pandemic disrupted social drinking and hospitality sales which negatively affected the market

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Pandemic-induced lockdowns severely impacted the soju industry because the reduction of the on-trade placement was extremely high due to the closure of bars, restaurants and other social places. Traditionally consumed at social gatherings and meals, the sales of soju dropped drastically because of restrictions on dining out and limited social interaction. The sharing culture was interfered with by the cultural action that accompanied drinking of soju, and this had a major impact on demand. Consumption on-premise dropped as consumers were at home, but the reduced-sized consumption was not sufficient to replace in-person activities. The industry experienced problems with supply chains and declining revenues as the industry was extremely dependent on community gathering and in-person social activities.

LATEST TRENDS

Increasing popularity of Korean culture to driving the market

The global popularity of Korean culture has played a crucial role in elevating soju’s presence in international markets. The dynamical growth of K-pop, Korean drama and Korean food that has entered its way into the lives of millions of consumers all over the world has given a taste of the Korean way of life, where soju plays a major role during eating and socialising. This has been the kind of cultural convergence that makes soju not only a drink but a part of Korea. The popularity of social media, with everyone going viral and collaboration with international entertainment networks, has also extended the exposure of soju. With fans hopeful of recreating the Korean dining experience, the demand for soju keeps rising, and so it is finding its way into markets beyond its largely Asian market base.

SOJU MARKET SEGMENTATION

BY TYPE

Based on type, the global market can be categorized into Distilled Soju and Diluted Soju

• Distilled Soju: Distilled soju is crafted by using traditional methods such as pot distillation with fermented grains such as rice, barley or wheat. It has a vintage taste profile that is earthy, grainy or yeasty and very aromatic. The atmospheric or vacuum distillation method has a lot to do with its flavour, including bold to light and fruity. Old-fashioned starters such as nuruk and natural fermentation give it character and depth. Distilled soju is the choice of connoisseurs' flavour due to its richness, authenticity and cultural significance and worth.
• Diluted Soju: Diluted soju is made by mixing high-purity neutral spirits from starches such as sweet potatoes or barley with water and additives. It is smooth, clean, and mildly tasting and it is commonly artificially sweetened. Manufactured via continuous distillation, it is consistent yet not as complex in its flavouring. The popular green bottle soju is a classic example, designed for mass appeal. Widely consumed, it’s favoured for its lightness and easy drinkability in casual social settings.

BY APPLICATION

Based on application, the global market can be categorized into Below 20 Years Old, 20-40 Years Old, 40-60 Years Old and Above 60 Years Old

• Below 20 Years Old: Below 20 years old, this group falls below the legal drinking age, limiting their consumption in the soju market. Any consumption is typically driven by curiosity or peer influence, often through informal ways. Underage drinking raises health and safety concerns, prompting regulatory attention. The market does not target this segment and emphasises responsible access control. There are awareness programs and vigilance, which are supposedly meant to make sure that minors do not consume soju.
• 20-40 Years Old: 20–40 years old consumers dominate global soju consumption, who often enjoy it at social events and gatherings. They want more choices, changes in flavoured ready-to-drink and even blended products. Media attention and trend-setters are responsible for fashionable branding and online advertising. The international reach of Korean pop culture adds tremendous weight to the popularity of soju among people in this age bracket. Soju is considered cheap and flexible, making it a preferred drink at recreational and group gatherings.
• 40-60 Years Old: 40–60 years old consumers traditionally prefer familiar drinks but are growing interested in soju for its quality and cultural depth. They tend to favour premium, authentic varieties with refined flavour profiles. They tend to drink soju with meals or during get-together events, matching their seasoned palates. Market is placed on custom and elegance over trends. Health-conscious choices also guide their preferences toward milder, more genuine soju options.
• Above 60 Years Old: Above 60 years old, consumers usually prefer classic spirits but are slowly embracing soju due to cultural exposure. They also want its mellow, soft nature and alcohol content to be less than in heavier spirits. Soju consumption is frequent during traditional events, with a focus on experiencing heritage and nostalgia. Their decisions are driven by health and moderation, preferring milder types. Digital media is less effective than word-of-mouth and traditional advertising in influencing this age group.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

Growing demand for trade and globalisation are expected to boost the market

Growing demand for trade and globalisation are significantly shaping the trajectory of the soju market growth, as more consumers outside Korea discover and embrace its smooth taste, versatility and cultural heritage. The spread of global awareness in the Korean pop culture, also including food and lifestyles, has further led to this increased desire as the culture has thrust soju into the limelight. North America, Europe, and Southeast Asia are experiencing increased imports and product launches in various areas with different flavoured and premium products to fit the local tastes. Due to this, the association of soju in the world market is growing steadily and the forecast shows that there will be even higher growth. This transition reveals alterations in customer tastes and a wider tolerance of foreign liquors.

Rising cultural significance and social integration to expand the market

Cultural significance and social integration are crucial in maintaining and growing the soju market. Soju is a traditionally Korean drink, and thus majorly drunk during social rituals, ancestral rituals, family get-togethers and celebrations, making the product intergenerational. They are consumed in communal eating, in establishing social connection at mealtimes and in silence etiquette, such as pouring a drink and accepting it with both hands, confer both emotional and cultural importance to consumption. This strong cultural connection helps maintain consistent domestic demand while also resonating with global consumers interested in authentic experiences. As Korean pop culture spreads globally, soju’s cultural prestige boosts its appeal in other countries, supporting both emotional engagement and market resilience in competitive beverage sectors.

RESTRAINING FACTOR

Regulatory challenges and high taxation hinder the market

Regulatory challenges and high taxation are substantial obstacles to soju market development, especially in foreign markets such as the U.S. and the EU. With the growing alcohol regulations, such as bans on importation, labelling, and advertisements, production becomes complicated and expensive, and this makes them non-compliant. Premium excise duties and tariffs further boost the retail price, creating either a lack of competitiveness against competing local or more established international spirits. Such restrictions obstruct brand presence, delay market penetration and disincentivise smaller or craft manufacturers globally. Moreover, the inability to promote soju freely through digital or mainstream channels restricts consumer awareness and demand, ultimately stalling momentum in promising markets.

OPPORTUNITY

Product innovation and variety to create opportunities for the market

Product innovation and variety are some of the factors that lead to the growth in the dynamic soju market, which has a wide range of customers of various types. Flavoured soju with fruit flavours such as peach, green grape, and grapefruit have grown especially prevalent among younger drinkers and have an easier appeal with their sweeter profile. The enhanced convenience and visual appearance of the soju products using ready-to-drink packaging format and special packaging design are the additional factors that make the product convenient to drink any time, casually and on the go. The fact that the premium and craft soju varieties are starting to indicate that there is a growing level of demand for crafted quality and authenticity. Not only are such innovations responsive to changing consumer preferences, but they also allow the brands to distinguish themselves in a saturated market that would encourage them to explore and, as a result, boost their establishment in the international market.

CHALLENGE

Competition from substitute drinks to challenge the market

Competition from substitute drinks is a potential danger to the development and sustainability of the soju market. As more and more varieties of alcoholic beverages are available to the consumer, such as spirits, vodka, whiskey and gin, as well as beer, wine and special ready-to-drink cocktails, soju is not doing well with share. The popularity of such traditional drinks in Korea as makgeolli and new drinking styles such as kombucha and tea is gradually moving soju off the shelves. This rivalry is making soju brands fight against each other regarding both customer loyalty and spending more on advertising and diversification. The steady stream of substitutes, invariably aided by intensive marketing campaigns and a wide variety of flavours, threatens soju to remain relevant, especially to younger and more fad-driven audiences.

SOJU MARKET REGIONAL INSIGHTS

• NORTH AMERICA

In North America, particularly the United States soju market is showing a promising market with the increased popularity of Korean food, K-pop and K-dramas. The region is increasingly taking up a bigger share of demand in the worldwide soju market, due to curiosity in lighter alcohol alternatives. Flavoured soju attracts people's attention more because of its popularity among younger ages, and bartenders are also starting to use more soju mixed in various cocktails. Korean eateries contribute a lot to increasing their awareness and popularity.

• EUROPE

Europe represents a smaller yet steadily expanding market for soju, as there is an increasing interest in unique and culturally rich drinks. The growing interest in Korean food and the impact of K-pop and K-dramas are making soju more visible. Major markets such as the U.K., France and Germany are experiencing an increased demand via Korean restaurants, liquor stores and grocery stores, with new distribution networks locking in region-wide growth.

• ASIA PACIFIC

The Asia Pacific region dominates the global soju market share, with South Korea being dominant due to its deeply established cultural customs with regard to soju and other day-to-day social affairs. South Korea is the greatest consumer, as soju is an everyday item at meals and get-togethers. Also, urbanisation, growing income and increasing consumption of flavoured and lighter alcoholic beverages, enhance the strength of the market in the region. Korean wave, comprising K-dramas and K-pop, has substantially contributed to the popularity of soju in several nations such as China, Japan, Vietnam and Australia. Notable growth drivers include flavoured soju, low-alcohol and ready-to-drink products and the emergence of higher-quality craft varieties, with systems including convenience stores enabling nationwide proliferation.

KEY INDUSTRY PLAYERS

Key industry players are increasingly investing in marketing and promotional activities for market expansion

Key industry players are enhancing their promotional and marketing activities towards building awareness about their brands and achieving greater traction in the competitive soju industry. As the world became enamoured of Korean culture, brands are capitalising on specific campaigns, influencer marketing arrangements and culturally preferable storytelling to reach out to younger, fashionable consumers. Sizzling marketing, social media engagement and events such as pop-up tastings and K-pop play nights are proving to be more appealing to the customers. Such strategies not only amplify the interaction with consumers but also distinguish brands in any market. By tailoring their messages to hold the current trends in lifestyles and local preferences, market players are increasing their brand's exposure and taking the industry to newer heights in the global soju market.

LIST OF TOP SOJU COMPANIES

• HiteJinro (South Korea),
• Lotte Liquor (South Korea)
• Muhak (South Korea)
• Kumbokju (South Korea)
• C1 Soju (South Korea)
• Bohae (South Korea)
• Chungbuk (South Korea)
• Hallasan (South Korea)
• Mackiss (South Korea)
• Andong (South Korea)

KEY INDUSTRY DEVELOPMENT

June 2025: JINRO has collaborated with Netflix on a special edition limited pack of soju VIP brooch for the Squid Game season 3, extended to 18 countries. The set is marked by the return of popularity to iconic characters such as the Pink Guards, Young-hee in a different outfit, and the introduction of a new character, the Chul-su doll. The campaign features pop culture, collecting anticipation and fun with branding and viral marketing features, along with themed soju glasses and international office tastings.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

Soju market is witnessing strong growth driven by rising global interest in Korean culture and strategic promotional efforts by key industry players. Brands are actively investing in marketing campaigns, influencer partnerships, and culturally resonant storytelling to appeal to younger, trend-conscious consumers. Social media, pop-up tastings, K-pop-themed events, and visually engaging packaging have become essential tools for expanding brand reach. These efforts not only enhance visibility but also create emotional connections with global audiences. By aligning with lifestyle trends and regional preferences, companies are successfully positioning soju as a culturally rich and versatile spirit, boosting its popularity across international markets.