Whisky imports into South Korea have nearly halved in three years, as the boom that took hold during the COVID-19 pandemic unwinds. Industry officials say cooling demand is behind the decision by distributors to cut ex-factory prices and by discount chains to run half-price promotions.
Whisky imports totaled 12,205 tons in the January-August period this year, down 22% from a year earlier, according to trade statistics from the Korea Customs Service released on the 22nd. That marks a 45.9% drop from the same period in 2023, when the whisky boom was at its peak at 22,545 tons. On an annual basis, imports hit a record 30,586 tons in 2023 before falling to the 22,000-ton range last year, a 26.2% decline over two years.
The drop in value was smaller than in volume. Import value fell 5.6% to $140.58 million over the same period. Based on customs data, the import price per ton was $11,676 in the January-May period this year, 16% higher than a year earlier. Analysts say the market is shifting toward drinking less but paying more per bottle.
Direct overseas purchases show a similar pattern. According to data the Korea Customs Service submitted to the office of Rep. Moon Jin-seok of the Democratic Party of Korea, the dutiable value of whisky bought through direct overseas purchases fell to 3.952 billion won from 9.6 billion won in 2022, while the number of transactions dropped to 52,733 from 75,412. Consumers have shifted from single purchases exceeding 100,000 won to buying cheaper liquor in smaller orders, even as the overall number of transactions declined.
High Prices, Highballs and Health: Why Whisky Demand Cooled
Several factors are cited for the slowdown. Demand driven by at-home drinking and limited-edition collecting during the pandemic has faded amid high inflation and a sluggish economy. Some analysts point to a shift in drinking culture toward highballs, in which whisky is mixed with other beverages, which has reduced consumption of premium products.
Industry officials also say a growing number of consumers are cutting back even on drinking at home, citing health management and the use of prescription weight-loss drugs.
That is why some companies are lowering prices. Pernod Ricard Korea cut ex-factory prices for some Ballantine's Glenburgie and The Glenlivet products by up to 13% in December last year, following a similar move in December 2024. The cut was announced in March this year.
Among discount chains, E-Mart sold Ezra Brooks 90 Proof, an American bourbon, at half price — 24,900 won, down from 49,800 won — for customers paying with designated promotional cards from the 15th to the 21st of this month. The Glen Grant Exploration No. 1 was discounted by about 30%.
Scotland, the home of whisky, faces similar conditions. Scotch exports fell 1.8% in value to 5.3 billion pounds last year, while export volume declined 4.3%, according to the Scotch Whisky Association. Ian Macleod Distillers, which operates the Glengoyne and Rosebank distilleries, cut annual production by 30%.
The Financial Times reported that about 1.4 billion liters of whisky are maturing in Scotland, though that figure includes spirit yet to be bottled and does not represent unsold finished products alone. Scotch export volume rose about 6% in the first half of this year and export value about 3%, but that may reflect a larger share of lower-priced products.
The key question is whether demand returns. Whether imports bottom out and rebound, and whether sales hold up after promotions end, will determine the direction of whisky prices.