South Korea’s Sweet Tooth Turns Sour on Sugar: Zero-Sugar Alternatives Surge, Fueling a 2 Trillion Won Market
Seoul, South Korea – A quiet revolution is brewing in South Korean kitchens and on supermarket shelves. Forget the sugar bowl – consumers are increasingly reaching for alternatives, driving a dramatic shift in the nation’s food and beverage landscape. This isn’t just a fleeting trend; it’s a fundamental change in how Koreans perceive sweetness, with the market for sugar-free carbonated drinks alone exceeding 2 trillion won (approximately $1.5 billion USD) last year. This is breaking news for the food industry, and a signal for companies to adapt or be left behind. For those following SEO best practices, this is a key moment to understand consumer behavior.
The Rise of the ‘Mortgage’ Consumer: Health Concerns Drive Demand
The shift isn’t about deprivation; it’s about mindful consumption. A growing segment of the population, dubbed the “mortgage” (meaning ‘zero’ in Korean slang referring to zero-sugar) consumer, is actively seeking products with reduced or no sugar content. One shopper at a Seoul hypermarket explained, “I buy ‘zero’ products to reduce sugar intake. When cooking at home, we use allulose instead of sugar.” This sentiment is echoed across the country, with four out of ten shoppers now opting for sugar alternatives, a significant jump from previous years. E-Mart, a leading hypermarket chain, reported a 63% to 37% split in sugar versus alternative sweetener sales annually, with alternatives now accounting for 43% of sales in the first half of 2024.
Allulose: The Star Sweetener
While a variety of sugar substitutes exist, allulose is emerging as the clear frontrunner. Derived from fruits, allulose offers approximately 70% of the sweetness of sugar but with only 10% of the calories. This makes it an attractive option for health-conscious consumers. E-Mart saw allulose sales increase by 18% year-on-year in the first half of 2024, while sales of zero-sugar sauces and seasonings skyrocketed by a remarkable 241%. Lotte Mart and Homeplus also reported substantial gains – 20% and 84% respectively – in allulose and related product sales.
Raw Material Shifts and Industry Response
The consumer shift is having a ripple effect throughout the supply chain. Imports of raw sugar have decreased by 16.4% over the past three years, falling from 1,844,440 tons in 2021 to 1,544,130 tons in 2024. This decline underscores the tangible impact of the “mortgage” trend. South Korean food and beverage giants are responding aggressively. Samyang, a leading allulose producer, invested in a new production facility in Ulsan, boosting its capacity to 130,000 tons annually. They now supply allulose to over 300 products in the B2B market, with related sales up 13% year-on-year.
From Retreat to Re-Entry: CJ CheilJedang and The Grand Prize Join the Fray
The story isn’t just about success stories; it’s also about strategic pivots. CJ CheilJedang, which initially commercialized allulose in 2015 only to withdraw in 2019 due to perceived lack of market viability, has re-entered the market with a new “Sugar Light” lineup. Similarly, The Grand Prize, recognizing the growing demand, invested 30 billion won in an allulose production facility and launched its own B2C brand, ‘Swye Vera,’ in 2023. They are now supplying allulose to over 50 domestic beverage manufacturers, including major players like Lotte Chilsung Beverage and Hite Jinro.
A Carbonated Revolution: The Zero-Sugar Beverage Boom
The impact is particularly visible in the carbonated beverage market. According to Euromonitor, the domestic zero-sugar carbonated beverage market more than doubled between 2022 and 2023, soaring from 886.1 billion won to 1.82 trillion won. This explosive growth demonstrates the power of consumer demand and the potential for further expansion. The competition for sweeteners is now fierce, with companies vying for market share in this rapidly evolving landscape.
The South Korean shift towards zero-sugar alternatives isn’t merely a local phenomenon. It reflects a global trend towards healthier eating habits and increased awareness of the negative impacts of excessive sugar consumption. As consumers worldwide become more discerning, the demand for innovative and effective sugar substitutes will only continue to grow, reshaping the future of the food and beverage industry. Stay tuned to Archyde for continued coverage of this evolving story and its global implications.
