Riding the K-wave: soju soars in the US

While the category remains small (accounting for less than 1% of US spirits volumes in 2024, according to IWSR data), it is scaling rapidly from an early-stage base, with IWSR forecasts predicting CAGR volume growth of +16% between 2024 and 2029 – versus a projected decline in total US spirits volumes of -2% over the same timescale

That puts soju in a similar position to previous high-growth emerging categories, such as Tequila and RTDs, says Koryn Ternes, IWSR US consulting director. She explains: “Soju is one of the largest spirits categories globally, but it remains relatively underdeveloped in the US, which highlights the scale of the opportunity ahead. It’s growing quickly and showing many of the same early signals we’ve seen in other breakout categories.”

This growth is spearheaded by the rapid rise of Korean culture – the so-called K-wave or hallyu – which encompasses everything from K-pop to films, television, beauty and food. This cultural exposure informs consumers how, when and why to drink soju, encouraging trial.

Major cultural moments, such as the releases of Squid Game or K-Pop Demon Hunters, pique consumer curiosity, leading to a spike in Google searches for ‘soju’. People with an interest in Korean culture are also disproportionately likely to go on to explore Korean food and drink as well.

“The growth of soju in the US is very closely linked to the rise of Korean culture, whether that’s entertainment, food or broader lifestyle trends,” says Ternes. “Consumers are often first introduced to soju through Korean culture, and that exposure helps shape how and when to drink it.”

Growth is also being fuelled by helpful consumer trends, including the influence of younger LDA consumers and second-generation Korean Americans. Younger LDA consumers over-index on social media, the use of ecommerce and flavour-led exploration, with IWSR research suggesting that. that Gen Z are the early adopters of soju in the US.

“Soju is really being driven by younger LDA consumers,” explains Ternes. “It’s seen as a fun, social alternative and is often discovered in group settings like house parties or nights out. We’re seeing soju closely tied to social occasions – including Korean barbecues, karaoke or pre-drinks – which helps to position it as an intrinsic part of the whole experience, and not just another drink choice.”

Meanwhile, the Korean American population is increasingly US-born, with a younger demographic profile, higher levels of university attendance and a larger presence in diverse social networks. This helps to broaden the appeal of soju beyond US Korean communities, enabling it to target new occasions.

Soju’s popularity is also being boosted by the accessibility of flavoured and RTD variants, which help to lower barriers to trial. Flavoured soju now accounts for more than half of US soju volumes, a significant rise since 2019, according to IWSR analysis.

Category growth is being anchored by leading variants such as peach, strawberry and grape, with flavour often driving trial before brand loyalty is established. Ternes reports that flavour is now the primary entry point into soju for US consumers, explaining: “Consumers are much more likely to engage with fruit-forward, approachable profiles than traditional unflavoured expressions.”

A similar phenomenon is observed with RTDs, which help to expand consumption into off-premise and casual occasions. Competing directly with hard seltzers, flavoured spirits and canned cocktails, soju-based RTDs act as a gateway into the category for new consumers, with smaller, more accessible formats to the fore.

However, in spite of this rapid growth and clear potential for the future, consumer understanding of soju in the US is still at an embryonic stage: many drinkers confuse soju with sake or shochu, and the category lacks an obvious signature serve to attract new recruits.

As awareness grows ahead of understanding, this has created a clear consumer education gap – but this can also be used as a blank canvas for brand owners to define and communicate how to drink and position soju in the future.

“One of the biggest challenges for soju in the US is that consumers don’t always understand what it is or how to drink it,” says Ternes. “Unlike other spirits, there isn’t a clear starting-point for soju – like a Margarita, vodka soda, gin & tonic, etc – which creates both friction for consumers and an opportunity for brands to define the category.”