Coca-Cola Plays Catch-Up in Korean Zero-Cola Market

The Korean zero-cola market has seen a dramatic shift in recent years. Coca-Cola, once the leading brand, is now responding to Pepsi's success rather than setting trends.

Pepsi Zero Sugar Lime, launched by Lotte Chilsung Beverage in 2021, quickly became a top seller and established lime flavor as the dominant product group in Korea's zero-cola segment. In response, Coca-Cola released its own version, Coca-Cola Zero Lemon Lime, earlier this month.

The market has grown exponentially, with the overall zero-cola market expanding from 7.3 billion won to 288.2 billion won between 2021 and last year. However, despite this growth, Coca-Cola's share of the market declined from 59.8% in 2022 to 53% last year.

Lotte Chilsung Beverage plans to maintain its first-mover advantage by launching new products and expanding consumer touchpoints. Industry experts predict that competition will intensify as companies focus on differentiating themselves through flavor and experience.