Singaporeans traveling to South Korea increases by 52% from 2019

LocalSoju drives impressive market growth; Halal variant faring well

Consumers copy Korean style but buy products locally

SINGAPORE,Nov. 29,2024 -- Consumers in Southeast Asia are avid consumers of 'Korean-wave' (K-wave) products but ultimately surf for localised K-products,according to data analytics firm Euromonitor International.

With growing consumer demand,brands are increasingly embracing K-wave in product development,promotion and local engagement. Consumer brands,particularly food,drinks and beauty,see K-wave as a tide driving key growth.

Sunny Moon,Research Manager at Euromonitor International,said: "Beyond watching Korean content and travelling to Korea,consumers also incorporate K-products into their daily lives. However,they eventually prefer local products that align with local preference."

Consumers want more than just Korean surface appeal

As detailed in Euromonitor International's 'K-Wave in Southeast Asia: Impact and strategies'webinar,the influence of K-pop,K-beauty and K-food in Southeast Asia has reached remarkable levels,fuelled by the surge in outbound travel to South Korea.

According to researchers at Euromonitor,Singaporeans saw a significant 52% growth in outbound travel to South Korea in 2024 compared to 2019. Visitors from Indonesia (10%) and Taiwan region(13%) also increasingly travel to the home of K-Wave,driven by strong outbound travel recovery.

Moon noted:"Consumers' Korean-craze consumption continues in their home countries. To meet growing consumer demand,brands are embracing the K-wave by appointing K-pop stars as brand ambassadors,even featuring Hangeul,the Korean alphabet,on product labels."

Soju,South Korea's popular alcoholic drink,has become an affordable drink for locals nowadays,thanks to it featuring in K-drama. Soju has seen impressive growth in major Southeast Asian countries with CAGR of 121% growth from 2019 to 2023 in total volume sales,particularly in Malaysia (241%),Indonesia (182%) and Thailand (100%).

However,consumers are now opting for locally produced Soju,rather than imported Soju. Indonesia and Malaysia have introduced Halal Soju,a non-alcoholic Soju but in Soju's iconic green bottle. This caters to the Halal consumer's demand,as well as a rapid growth for Soju in these markets.