1 week Ago By Korea Bizwire
Coca-Cola announced on December 12 that it has launched ViO Huio Ullim Water. (Image courtesy of LG Household & Health Care) SEOUL, Dec. 13 (Korea Bizwire) – With South Korea’s bottled water industry facing growing competition, Coca-Cola Beverage is making its bid for the premium segment with a new product launch, adding another player to an increasingly crowded market where longtime leader Jeju Samdasoo has seen its market share slip below 40%.
Coca-Cola announced on December 12 that it has launched ViO Huio Ullim Water (unofficial translation), the first bottled water sourced from Ulleungdo Island, priced at 2,000 won per bottle. The product represents the culmination of a seven-year effort by LG Household & Health Care, Coca-Cola’s parent company in South Korea. The path to launch hasn’t been smooth.
LG Household & Health Care established Ulleung Mineral Water in September 2017 as a public-private partnership with Ulleung County, investing 50 billion won for an 87% stake. The project faced a major setback in 2021 when the Ministry of Environment initially denied permits due to violations of water regulations. Despite these challenges, LG Household & Health Care continued its support, including a 20-billion-won third-party share allocation last July.
The company’s persistence in entering the premium water market stems from its high profit potential and steady growth in demand. Premium water products can command higher margins despite little quality differentiation from standard bottled water. The segment is particularly attractive due to consistent demand from luxury service sectors such as department stores and hotels.
Reflecting this strategy, the Ulleungdo ViO water will initially be sold at 29 Lotte Department Store locations and five Galleria Department stores. The bottled water market stands out as a rare growth sector in South Korea’s otherwise stagnant domestic food industry. According to Euromonitor, the market size nearly doubled from 1.
69 trillion won in 2019 to 2.74 trillion won last year, with projections exceeding 3 trillion won this year. “The bottled water market is particularly attractive to distribution companies due to its low entry barriers, steady demand, and continuous growth potential,” an industry insider noted.
The market has attracted numerous players, including food companies like Nongshim, Orion, and Pulmuone, while retail and e-commerce companies are launching their own private label products. LG Household & Health Care already operates two bottled water brands: Coca-Cola’s Soonsu and Haitai Beverage’s Gangwon Pyeongchangsoo. According to the Ministry of Environment, approximately 210 water brands from 59 companies are currently in circulation.
Amid intensifying competition, market dynamics are shifting. While Jeju Samdasoo leads the market, followed by Lotte Chilsung’s Icis and Nongshim’s Baeksansu, Samdasoo’s dominance has weakened. According to the Jeju Development Corporation, Samdasoo’s offline market share dropped to 39.
4% in October, marking the first time it has fallen below 40%. Ashley Song ([email protected]).
