A familiar industry faces an unfamiliar problem

A walk through Gimpo International Airport’s underground passage can mean passing a wall-sized advertisement for IGIN, a liquor brand associated with BTS member Jin. The airport is a high-traffic gateway for international visitors and domestic travelers, making it an attractive place to promote a drink. But the campaign also points to a bigger question: can star power overcome a market in which more people are choosing to drink less?

Celebrity-backed alcohol has become increasingly visible in South Korea. Some entertainers lend their names to products, while others take part in launching or investing in brands. That strategy can generate immediate attention, especially when fans are eager to try a product connected to a favorite public figure. Yet attention at launch does not necessarily translate into lasting demand.

The industry’s problem is not simply how to sell a particular bottle. It is how to grow when drinking itself is becoming less central to everyday life.

The numbers point to a sustained slowdown

South Korea recorded about 2.988 million kiloliters of alcohol shipments in 2025, according to figures cited in the article. That was the first time annual shipments fell below 3 million kiloliters since 1998, in the aftermath of the Asian financial crisis. Shipments measure products sent out by manufacturers, rather than exactly how much consumers drink, but they provide a useful gauge of the market’s scale.

The slowdown is showing up in company results, too. HiteJinro, South Korea’s leading alcohol company, reported first-half 2026 revenue of about 1.2 trillion won, down 4% from a year earlier. That decline matched the company’s full-year revenue fall in 2025, suggesting that pressure has continued rather than quickly fading.

Lotte Chilsung Beverage’s alcohol division recorded a 2% increase in first-half 2026 revenue. That is a modest improvement, but it follows a 7% decline the previous year. Because a small gain after a sharp drop can partly reflect the low starting point, the rise alone does not prove that the business has entered a durable recovery.

Regional producers feel the pressure

Smaller and regional liquor makers may have even less room to absorb falling sales. Local brands often rely heavily on customers in a particular province or city, while national competitors can spend more on advertising and distribution. The removal of a system requiring certain buyers to purchase local liquor has added to the competitive pressure on regional producers.

The article reports that Daesun Distilling, maker of Busan’s C1 soju, saw revenue fall 15% in 2025. Muhaak, a major producer in South Gyeongsang Province, was down 5%, while Geum Bok Ju, based in the Daegu and North Gyeongsang region, fell 9%.

Two companies posted gains: Chungcheong-based Seonyang Soju and southwestern Korea’s Bohae Brewery increased revenue by 9% and 3%, respectively, compared with 2024. Together, however, their additional annual revenue amounted to just 6.7 billion won. The gains offered some relief to those businesses but were too small to reverse the wider contraction.

  • National companies are facing pressure on revenue even with broad distribution and well-known brands.
  • Regional producers must compete for consumers who can choose from a wider range of national and imported products.
  • A few local successes do not, by themselves, change the direction of the overall market.

The shift is global, not just Korean

The weakening market is not unique to South Korea. Company results from major international producers also point to sluggish sales. AB InBev, the world’s largest brewer and owner of brands including Budweiser, Stella Artois and Cass, reported that global beer shipments rose just 0.3% in the first half of 2026.

The company said growth in non-alcoholic beer helped protect total volume as demand for conventional beer weakened. Non-alcoholic beer is made to offer a beer-like taste while containing little or no alcohol, depending on the product and local rules. For a consumer who wants a drink with dinner but wants to avoid alcohol, it can serve as a practical alternative rather than a complete change in social routine.

Other large producers have also reported uneven results. Diageo, known for Johnnie Walker whisky, reported a 3% decline in net sales in its preliminary results for fiscal 2026. Suntory Holdings, a leading Japanese drinks company, recorded a 0.2% rise in first-half alcohol revenue, but operating profit fell 25%.

The figures do not mean that every brand or category is shrinking at the same pace. They do, however, suggest that even global companies with famous labels and international reach cannot assume that traditional alcohol sales will keep growing. A company can sell slightly more while earning substantially less if costs rise or if its product mix shifts toward lower-margin items.

Revenue and profit tell different stories

Revenue is the money a company brings in from sales. Operating profit is what remains after the costs of running the business are deducted. The difference matters: a sales increase does not automatically mean a healthier business, just as stable sales can mask rising expenses.

For example, a producer might sell more bottles by offering discounts, while earning less from each one. That can lift sales volume but squeeze profit. Investors and executives therefore need to look beyond a single headline figure when judging whether a company’s strategy is working.

Why consumers are changing their habits

Aging populations, economic uncertainty and changing social lives may all affect alcohol consumption. But the article argues that a broader change in values is also important: more people are treating health as part of everyday life, rather than as something to focus on only after becoming ill. That can mean choosing a run instead of a late night out, or picking a low-alcohol drink at a social gathering.

Several popular lifestyle ideas reflect this shift. “Wellness” describes a broad effort to support physical and mental well-being. “Healthy pleasure” refers to looking after oneself in ways that remain enjoyable, rather than relying only on strict rules. “Sober curious” describes people who are interested in drinking less or questioning how alcohol fits into their lives, even if they do not identify as completely alcohol-free.

For younger adults in particular, health routines can be part of a positive identity: exercising with friends, protecting sleep, or choosing drinks that will not interfere with the next day. A non-alcoholic option can make it easier to join a toast without having to explain why someone is not drinking. These choices are not necessarily a temporary reaction to tight household budgets; once they become habits, a return to heavier drinking may be less appealing even when the economy improves.

The contrast with the pandemic-era boom in conspicuous spending is striking. In those years, social media helped popularize luxury whiskey purchases and golf-course outings as visible signs of consumption. Today, some younger consumers appear more drawn to activities such as running clubs and to products that fit a healthier routine.

The shift is not only from one beverage to another. It may also be a shift in what people want a social occasion to do for them: support connection without requiring heavy drinking.

Celebrity marketing can create a splash, but can it last?

A famous face can help a new product stand out in a crowded store or online marketplace. When an entertainer has a strong following, fans may rush to try a limited release, and media coverage can amplify that early demand. This is particularly useful for small or newer brands that might otherwise struggle to reach consumers.

But a launch spike is not the same as repeat purchasing. The article points to Won Soju Spirit, associated with musician Jay Park, as a cautionary example: its revenue reportedly fell by half three years after launch. That does not prove celebrity branding cannot work, but it shows that recognition alone may not sustain sales over time.

For a product to become a lasting business, customers need reasons to return after the initial excitement has passed. Those reasons could include distinctive taste, reliable quality, a price that feels fair, easy availability or a clear connection to the customer’s preferences. Celebrity attention can introduce a brand; the product and its business model must do the rest.

Diversification offers another route

That is why some companies are looking beyond alcohol. Diversification means expanding into different products or industries so that a business is not dependent on a single source of income. In practice, it is like a household that earns money from more than one job: if one income stream weakens, another may help cover the gap.

The article highlights Seoyoung E&T, a company that has traditionally made and supplied equipment used in the alcohol trade, including beer-cooling systems. The company is associated with HiteJinro chairman Park Tae-young, who is its largest shareholder. Seoyoung E&T became widely known in connection with a Supreme Court ruling that found wrongdoing in a case involving unfair support through business dealings.

Through its subsidiary Jinbaek Global, Seoyoung E&T acquired cosmetics manufacturer B&B Korea in late 2024. B&B Korea produces the d’Alba mist, a key product for d’Alba Global, and reportedly generates annual revenue of 141.2 billion won. The acquisition took a company rooted in alcohol-related equipment into beauty manufacturing, a sector with different customers and sources of demand.

  • The strategic appeal: beauty and wellness products may reach consumers who are spending less on alcohol.
  • The potential benefit: revenue from another industry could reduce reliance on beer-related sales.
  • The risk: entering a new market requires expertise, investment and a strong product; buying a company does not guarantee success.

The move may also raise questions about corporate ownership and the purpose of the acquisition. The article notes that it could be viewed as an effort to increase business value in the context of succession planning. Whatever the motive, it illustrates how companies connected to the alcohol trade are searching for opportunities beyond their traditional market.

Diversification is not a shortcut

Expanding into beauty or wellness does not automatically solve a company’s problems. A business entering a new sector must understand its customers, compete with established rivals and manage unfamiliar production and marketing challenges. If it lacks the necessary skills, diversification can add complexity rather than resilience.

The strongest strategy is likely to connect new businesses to a credible understanding of consumer needs. Alcohol companies may have useful strengths in manufacturing, distribution and branding, but they still need to show that those strengths translate into products people genuinely want. The test is not simply whether a company can buy into a growing industry; it is whether it can build a sustainable place in it.

The road ahead for the drinks business

Alcohol makers will probably continue to test a mix of responses: non-alcoholic and lower-alcohol products, new flavors, premium offerings and businesses outside drinks. Each approach addresses a different problem. Alcohol-free products respond directly to changing preferences, while expansion into other industries can reduce dependence on the traditional market.

Companies will also need to distinguish lasting changes in behavior from passing trends. A celebrity collaboration may be useful for launching a product, but it is not a replacement for a clear long-term plan. Similarly, a new category can attract attention without becoming profitable unless the company understands production costs, customer demand and repeat sales.

The broader cultural change may be more important than any one marketing campaign. Drinking less is increasingly compatible with socializing, self-expression and enjoying a meal. As that becomes more normal, the companies most likely to adapt will be those that offer customers more choice rather than assuming that old habits will return.

The central challenge for the alcohol industry is to adapt to consumers’ lives as they are changing—not to spend indefinitely trying to recreate the drinking culture of the past.