The Whisky Collection on Display at a London Store

London’s whisky and wine market faces a sharp decline as South Korean consumers shift spending habits, according to a June 2026 report by Food360, a Seoul-based food and beverage analysis firm. The trend—documented in surveys of 1,200 South Korean wine and whisky enthusiasts—shows a 15% drop in imports of premium spirits from the UK, France, and the U.S. over the past year, with experts attributing the shift to rising domestic alternatives and changing consumer priorities.

The decline comes as South Korea’s domestic liquor industry expands production of makgeolli (traditional rice wine) and soju (distilled spirit), which now account for 68% of total alcohol sales in the country, up from 58% in 2022, according to the Korea Alcohol Industry Association. Meanwhile, imports of foreign wines and whiskies—once a status symbol among South Korean professionals—have fallen as younger consumers prioritize affordability and cultural authenticity.

“Koreans are drinking less imported alcohol, not because they dislike the taste, but because they’re choosing products that align with their identity and budget,” said Lee Ji-hoon, a senior analyst at Food360. “The market for premium international spirits is shrinking, while local brands are filling the gap with innovative marketing and lower prices.”

Why are South Koreans cutting back on whisky and wine imports?

The shift reflects broader economic and cultural changes. Rising inflation has squeezed discretionary spending, while younger Koreans—now the largest consumer demographic—prefer domestically produced alcohol, which is often cheaper and perceived as more authentic. Data from the Korea Customs Service shows imports of Scotch whisky alone dropped by 22% in the first quarter of 2026 compared to the same period in 2025.

Additionally, South Korea’s government has promoted local alcohol brands through tax incentives and export subsidies, further reducing reliance on foreign products. The country’s K-Alcohol campaign, launched in 2024, has successfully rebranded domestic spirits as high-quality alternatives to imported options.

How are UK and European exporters reacting?

British distillers, who rely heavily on South Korea as a key export market, have begun diversifying their strategies. The Scotch Whisky Association reported in May 2026 that UK exporters are increasing shipments to Southeast Asia and the Middle East to offset losses in Korea. “While South Korea remains important, we’re seeing growth in markets like Vietnam and the UAE,” said a spokesperson for the association.

French wine producers, meanwhile, have pivoted to e-commerce and direct-to-consumer sales, targeting younger Korean buyers through platforms like Coupang and Naver SmartStore. However, industry analysts warn that without a significant shift in consumer behavior, the long-term outlook for European alcohol exports to Korea remains uncertain.

What does this mean for global alcohol trade?

South Korea’s declining demand for imported alcohol underscores a broader trend: emerging markets are increasingly favoring domestic products over foreign goods, driven by nationalism, cost concerns, and cultural identity. For the UK and EU, this shift could pressure exporters to explore new markets or adapt their offerings to local tastes.

The trend also highlights the competitive edge of South Korea’s alcohol industry, which has successfully positioned itself as both affordable and culturally relevant. If sustained, this could serve as a model for other developing economies looking to reduce reliance on foreign imports.

Key figures and sources

• 15%: Decline in South Korean imports of premium whisky and wine (2025–2026), per Food360.
• 68%: Share of total alcohol sales now accounted for by domestic products (makgeolli, soju), up from 58% in 2022 (Korea Alcohol Industry Association).
• 22%: Drop in Scotch whisky imports to South Korea (Q1 2026 vs. Q1 2025), Korea Customs Service.
• Southeast Asia/Middle East: Emerging focus for UK whisky exporters amid Korean market decline (Scotch Whisky Association, May 2026).