Flavored makgeolli captures hearts of Millennials, Gen Zers

Participants taste different makgeolli products at the 2024 Makgeolli Expo, also known as MAXPO, held at aT Center in Seocho District, southern Seoul, May 10. Yonhap

Korea's traditional rice-based alcohol, "makgeolli," was perceived for a long time as an old-fashioned drink and stereotyped as a low-quality, mass-produced beverage known for causing bad hangovers.

However, the cloudy white drink has recently gained popularity among younger generations thanks to a series of young entrepreneurs who are giving it a modern makeover with exciting flavors and trendy branding.

For Amy Kim, a makgeolli enthusiast in her early 30s, these new flavored makgeolli products are gems to explore.

“When new flavored makgeolli is released, I tend to try it out of curiosity, although ultimately, my enjoyment depends on how well it pairs with the food,” she said, noting that social media hype around the products also helps promote them to the younger generation.

“These days, the trend of trying new flavors and sharing information about their taste on social media is prevalent. Many people are willing to wait in long queues at popular places just to try these drinks and share their experiences online,” Kim added.

According to the Food Information Statistics System, the makegolli market grew from about 459.1 billion won ($336.3 million) in 2018 to over 519 billion won in 2022.

Models hold Nerdy Hope Dry, a basil-flavored makgeolli launched by GS25 in January. Courtesy of GS Retail

Capitalizing on this trend, more breweries are jumping on board with their ready-to-drink makgeolli, offering innovative flavors to appeal to the tastes of Millennials and Gen Z consumers.

Earlier this year, GS25, a major Korean convenience store franchise owned by GS Retail, launched a new project called “Hipgeolli” (a blend of "hip" and "makgeolli"), in collaboration with local breweries run by entrepreneurs in their 20s and 30s.

The project debuted with the basil-flavored drink "Nerdy Hope Dry," made with locally grown basil from Sangju in North Gyeongsang Province. This beverage is the flagship makgeolli of Sangju Jujo, a brewery run by 32-year-old CEO Lee Seung-chul.

According to the convenience store chain, the brewery saw sales soar over 250 percent within a month of the product's launch in stores on Feb. 5. Initially slated for pre-sale from Jan. 23 to 29, the makgeolli product sold out on the first day. After the launch, nearly 90% of the inventory was depleted through offline sales.

From left, lychee, peach and strawberry-flavored makgeolli jointly created by GS25 and Together Brewery / Courtesy of GS25

Building on the success of the basil-flavored makgeolli, the convenience store also partnered with Seoul-based Together Brewery to introduce three fruit-flavored makgeolli varieties — strawberry, peach, and lychee — targeting the taste preferences of younger demographics.

“To select the products, a group of younger staff at GS25, called ‘Merchandiser (MD) Supporters’ took part, in order to reflect the preference of the MZ Generation (Millennials and Gen Zers) consumers in product planning,” GS25 said in a press release.

“About 30 supporters sampled around 10 types of makgeolli to evaluate taste and aroma and propose design ideas, leading to the release of three fruit-flavored makgeolli products for our Hipgeolli project.”

Since launching the project in January, the convenience store has experienced a growth rate of approximately 32.7% in makgeolli sales from January to April compared to the same period last year.

“Recently, among the MZ Generation, traditional alcoholic drinks such as makgeolli and other Korean liquors have become popular as 'hip' drinks, creating a new buzzword 'makgeketing' (a portmanteau of makgeolli and ticketing),” Lee Ha-rim, a managing director of the liquor team at GS Retail said, noting the challenges in acquiring these new, highly sought-after flavored makgeolli varieties.

“GS25 plans to establish itself as a leading player in the makgeolli market this year through the 'Hipgeolli' project, showcasing various unique and unconventional makgeolli produced by skilled breweries nationwide.”

Models hold Peanut Caramel candy flavored makgeolli, left, and Kaymak-inspired makgeolli. Courtesy of BGF Retail

Another convenience store franchise, CU, run by BGF Retail, has also been introducing unique flavored makgeolli products targeting younger consumers.

The convenience store collaborated with the local confectionery company, Crown, to launch a makgeolli flavored with Korea's beloved soft candy, Peanut Caramel. This makgeolli infuses a touch of nostalgia with the candy brand, offering the aroma and sweet taste of dalgona and peanuts.

CU has also introduced a Kaymak-inspired makgeolli named "Kaymakgeolli," drawing inspiration from Turkey's creamy dairy food made from milk.

Kaymakgeolli, packaged in pouches, features a thick yogurt-like makgeolli called Ihwaju, offering consumers various ways to enjoy the drink — whether by eating it with a spoon or mixing it with water to drink.

BGF Retail reported that sales of flavored makgeolli increased by about 14.2 percent this year compared to the same period of 2023, with young consumers in their 20s and 30s accounting for approximately 69.4 percent of the sales.

“With the increasing interest in makgeolli among the MZ Generation, a lot of unique products that go beyond traditional boundaries are consistently coming out. Moving forward, CU plans to continue presenting new traditional alcohol products, collaborating with various items and brands to create new trends in the scene,” Cho Hee-tae, the managing director of the liquor unit at BGF Retail, said.

Seoul Jangsoo brewery's honey butter almond-flavored makgeolli, left, and Earl Grey-flavored makgeolli / Courtesy of Seoul Jangsoo

One of Korea's largest makgeolli companies, Seoul Jangsoo, has been making efforts to expand its consumer base to include the younger generation.

The company's citrus-flavored Moonlight Yuzu Makgeolli, launched in 2020, quickly became a hit, selling about 100,000 bottles within the first 100 days after release and exceeding 1.7 million bottles earlier this year.

Riding on this success, Seoul Jangsoo collaborated with local nut brand HBAF to create a honey butter almond-flavored makgeolli, a snack that has become a popular souvenir among tourists visiting Korea. This new variant quickly gained traction after its release and has been exported to countries such as Japan, China, Taiwan, and the United States.

The company recently introduced a new product called Earl Grey Drink, brewed with high-end Earl Grey black tea to provide an aromatic complement to makgeolli's mild sweetness.

“We intend to deliver a more modern and sophisticated image by adding various flavors to the smoothness of makgeolli,” the company said. “We aim to provide new choices to the MZ Generation consumers who seek diverse forms of enjoyment.”