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- Singaporeans traveling to South Korea increases by 52% from 2019
- Local Soju drives impressive market growth; Halal variant faring well
- Consumers copy Korean style but buy products locally
SINGAPORE, Nov. 29, 2024 /PRNewswire/ -- 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.
