Amid efforts by the domestic makgeolli and traditional liquor industry to target the global market, the government's initiative to promote rice consumption through the revitalization of the traditional liquor industry is increasing expectations in the sector.
In particular, riding the wave of the K-food craze, interest in makgeolli has been growing overseas, and there are hopeful projections that the traditional liquor industry could become a new breakthrough for the stagnant domestic rice market.
According to the related industry and the government on the 21st, Minister Song Mi-ryeong of the Ministry of Agriculture, Food and Rural Affairs recently presented a goal to increase the annual consumption of Korean rice used in traditional liquor from the current 5,600 tons to 30,000 tons within five years.
Minister Song emphasized the need to foster the traditional liquor industry, noting, "Japanese sake consumes 300,000 tons of rice annually, while our traditional liquor is at a level of 5,600 tons."
Liquor is a processed food with a large rice consumption. In the case of traditional liquor with high alcohol content, about 1 kg of rice is needed to brew 1 liter. Additionally, compared to other rice processed foods such as rice cakes, it has a longer shelf life, resulting in fewer spatial and temporal constraints on sales.
The recognition of makgeolli in overseas markets has also increased. According to the Korea Agro-Fisheries & Food Trade Corporation (aT), exports of makgeolli to the United States rose by 7.9%, from $2.56 million in 2022 to $2.76 million in 2023.
The United States is the largest liquor market in the world. In the U.S., makgeolli is establishing itself as a health beverage made from rice that contains probiotics. This, coupled with the global preference trend for low-alcohol beverages and the Korean Wave, has steadily increased demand.
In particular, there is growing interest in traditional liquor among the MZ generation, alongside the drinking culture that spread post-COVID-19, following wine, distilled spirits, and sake, leading to expectations for a second renaissance of traditional liquor.
The makgeolli industry is also accelerating its overseas expansion as if "paddling as the water rises." Jipyeong Brewery has entered the U.S. market for the first time this year, selling "Jipyeong Fresh" and "Jipyeong Dalbam" in major cities like California, Texas, New Jersey, and Washington. The plan is to start in areas with a high concentration of Koreans and expand sales channels through online platforms and retail channels.
A representative from Jipyeong Brewery noted, "Makgeolli is being perceived by American consumers as a naturally fermented healthy beverage," adding, "Our goal is to establish it as a beverage in the daily lives of local consumers, beyond the Korean community."
Seoul Jangsu, the leading company in the makgeolli industry, is already exporting products to over 30 countries, including the U.S., Australia, China, and Japan. From the first half of this year, it plans to expand into Asian markets such as Malaysia and Indonesia.
KOOKSOONDANG BREWERY is exporting makgeolli to over 60 countries, mainly in the U.S., Japan, and China. "KOOKSOONDANG fresh makgeolli" has continued to gain popularity since it was the first in the industry to begin exporting to the U.S. in 2009. The '100 billion prebiotic makgeolli' has become a staple export item, considering health functionalities.
The government has established various support measures to revitalize the traditional liquor industry. The small-scale liquor manufacturing license, which was previously allowed only for fermented drinks, will be expanded to include distilled liquors such as soju, brandy, and whiskey. Furthermore, the benefits of liquor tax exemptions for small traditional liquor manufacturers will be doubled.
Additionally, when exporting K-food, the government plans to strengthen overseas marketing through traditional liquor pairing exports, promotional materials and catalogs distributed through diplomatic missions, and pop-up store operations. The goal is to increase traditional liquor exports to $50 million by 2027.
An industry representative remarked, "As the domestic market stagnates and we accelerate efforts to develop overseas markets, government support measures will be a great help," adding, "Using it as a toast drink at official events hosted by Korean embassies will also enhance recognition overseas going forward."