The Time Is Now: The Rise of Asian Drinks
By Tom
The prophesied trend for Asian spirits has been delayed for a long time.
On the lips of industry commentators for several years, the boom has never looked likely to reach its potential.
Until now.
Asian flavours, in both spirits and other drinks, are making a major impact in global markets.
The popularity of Sake has been growing for many years, to the extent it is now a household name, but we are starting to see increased interest on a global level in other Asian flavours and the different national drinks of Asia.
Asian cuisines have long dominated the culinary scene and appetite for the different cuisines shows no sign of abating.
We feel the chess pieces are now in place for this trend to gather steam, Asian drinks brands will experience exponential growth and consolidation in the next 12 months. Here are our five reasons why we think this.
1. Asian Spirits Dominate Global Sales Data
Asian spirits are mega players in the global market.
A report by Brand Finance shows that a staggering 6 of the world’s Top 10 most valuable spirits brands are Chinese.
Domestic markets drive the greater part of this volume but it also shows the strong foundation these brands have in readiness for a global push.
Due to the existing and enduring popularity of Asian flavours and products, drink brand owners have recognized the opportunity for international expansion, and the last ten years have seen the demand for Asian products grow rapidly.
It is not just Chinese spirit brands looking to take advantage of the worldwide appetite for Asian flavours: the incredible diversity of spirit brands coming out of this region goes well beyond the domineering Baiju.
Sochu, Soju and Umeshu are following in the footsteps of Sake, making waves globally and creating excitement in the bars of the UK and USA with bartenders embracing the new flavours that are becoming increasingly popular.
2. Asian Flavour Big Influence On North American Cocktail Menus
The drinks industry is tuning into this growing consumer trend and we are seeing far more Asian inspired cocktails and drinks on menus across North America.
The results of North America’s 50 Best Bars were announced earlier this year and what was notable was the widespread use of Asian flavours and spirits in many of the cocktail lists and we’re not just talking about the occasional inclusion of Yuzu or Sake.
Unique products such as Li Hing Mu (salted plums), Dashi (Japanese soup stock) and Shio Koji (an umami condiment made from fermented rice) are all appearing on cocktail menus as bartenders worldwide explore the flavour opportunities that the Asian food and drink markets are providing. This in turn is helping to drive world-class bar programmes full of creativity and invention.
This is the stuff of dreams for UK bartenders as Asian flavours open up the landscape for innovation.
It’s significant for the UK that the North American market is leaning into Asian flavours and drinks. Often trends across the Atlantic translate well in our drinks industry.
Tequila and mezcal are examples of this. After years of huge popularity and growth in the USA, the Brits eventually got in on the party.
3. High Growth in UK Markets
These changes are not just anecdotal – we can see the evidence in expanding volume growth data.
A recent report from The Spirit Business pointed to Korean soju brand Jinro achieving a CAGR of 73% in the UK over the past three years alone.
This is a huge indication of where the market for Asian spirits is going in the UK and it shows a clear opportunity for distributors to satisfy the increasing demand for Asian spirits and drinks.
The UK strategy of Jinro Soju points to all-round demand from the on and off trade. Their sponsoring of All Points East and the landing of multiple retail listings signals that Jinro has consumer demand in the off-trade as well, not just with trend-focused experimental bars (which is a positive sign).
Adam Wyatt, Brand Manager at Sapporo, told us that Asian culture has become mainstream in the UK, led by a huge interest in Japanese culture.
“The confidence this has given to drink producers, mostly with regards to sake, has further pushed the envelope. The appreciation of Asian skill and care in making all things, encourages trial of sake by consumers, enabled by enthusiastic trade members and well-supported distribution, to the point you can now order sake bottle-to-table in nightclubs”
The growth opportunity for lower ABV Asian spirits such as Soju and Sake is also bolstered by the trend for moderation, premium drinking and the spritz craze. The challenge for Asian spirits now will be in the development of a strong strategy for both the on- and off-trade to ensure that they can capitalise on rising demand
4. All The Data Points Towards Rising Global Interest
Trends in social, search and online mentions of Asian drinks and flavours have also exploded globally in the last few years.
There has been a huge uptick in online mentions of keywords such as Yuzu Beer, Soju, Lychee Spirit, Arak and Makgeolli, which shows the growing consumer trend and the fact that Asian drinks have become firmly entrenched in the consumer consciousness well beyond the obvious Sake.
5. Asian Spirits Brands are Ready to Invest
A huge marketing drive by the big Asian spirits brands is about to be unleashed, with the larger companies wanting to capitalise on the rising interest in their products and seize the opportunity to expand into global markets.
Only last week it was reported that Suntory have identified white spirits as a “huge opportunity” for the giant.
This rings true with the way the market is moving.
Sherwin Acebuche of Tarsier Spirit told us he felt consumers are more hungry than ever to sample Asian drinks.
“The rise of Japanese whiskies has helped consumers focus on Asia and now they are looking for more” he explained, which correlates with the House Of Suntory’s observations
He continued to say that “it is our hope that retailers will see the opportunity to capitalise on the drinks trend for Asian products”
And we can’t see why not. Investment pledges from Asian drinks producers show that they are serious about capitalising on growth within the UK market and retailers should also tap into this trend.
How Can the On/Off Trade Capitalise on this Trend?
The key to the on-trade making the most of this trend is venues stocking Asian drinks, ensuring visibility on the menu and explaining the flavour profiles of these new products.
This education should be the bedrock of any brand & venue – assuming the consumer knows how best to enjoy products is risky.
Despite the rise in interest in Asian drinks, the awareness of how to drink products such as Soju, Baiju or Sonchu remains limited, especially within the mainstream.
This is a key moment for retailers and bars alike to get serious about consumer education at the point of purchase.
From a drinks perspective, it’s a huge opportunity to get creative and make cutting-edge, complex Asian-inspired cocktails as well as simpler, lighter long serves with products such as Soju.
In mainstream venues, the pairing of Asian spirits with already popular flavours (yuzu, lychee or lemongrass, for example) will give consumers a much-needed reference point they are familiar with; this creates a comfortable platform from which to introduce these new brands.
Serve strategy will be key to success.
While the interest in Asian drinks and flavours is in no way new, we feel that the next 12 months will see a huge shift in the Asian drinks brand’s visibility across the on and off trade.
With the indications of growth, popularity and investment continuing, the coming 12 months into 2025 will prove a breakthrough year for Asian drinks producers.
