Daesang’s Low-Sugar Hongcho Hits 20 Billion Won in Sales, Expands Global Reach
Daesang’s Cheongjungone ‘Hongcho’ has reached 20 billion KRW in cumulative sales just one year after launching its low-sugar product line. The brand, which maintains the top market share in the domestic drinking vinegar category, now aims for 30 billion KRW in annual sales for its low-sugar offerings as it prepares to expand into international markets including Japan and Vietnam starting in the second half of 2026.
Market Growth and Low-Sugar Strategy
Since its launch in 2005, Hongcho has led the domestic drinking vinegar market, holding the number one market share position from October 2021 through September 2024 according to global market research firm NIQ. The product, made from fermented fruit vinegar combined with honey, oligosaccharides, and allulose, has evolved to meet shifting consumer health trends.
The company recently introduced a “low-sugar” lineup, which utilizes allulose produced through Daesang’s own fermentation technology. These products meet the Ministry of Food and Drug Safety’s standards for low-sugar and low-calorie labeling. According to Daesang, the low-sugar range includes seven varieties, ranging from bottled beverages like Red Apple and Pomegranate to new portable stick-type versions designed for office and outdoor use.
Did You Know?
Hongcho’s initial success in 2005 was driven by the domestic “well-being” trend, with the brand surpassing 2 billion KRW in cumulative sales within just four months of its debut.
Global Expansion and Future Outlook
Daesang plans to accelerate its global strategy by leveraging the growing international interest in fermented health beverages. With a focus on Japan and Vietnam, the company intends to increase its presence in major local retail channels. This push follows a historical precedent: in 2011, the brand successfully captured the top spot in the Japanese drinking vinegar market share through active local marketing.
The company’s strategy involves balancing product innovation with convenience. By expanding its lineup to include stick-type packaging and “on” (warm) beverage options, Daesang is attempting to reach consumers in diverse settings, including workplaces and exercise environments. The firm aims to solidify its position as a global fermented health beverage brand through these targeted efforts.
Expert Insight:
Samantha Carter notes that Daesang’s transition from a standard vinegar beverage to a functional, low-sugar brand reflects a broader industry shift where legacy food manufacturers must pivot toward “functional labeling” to maintain market leadership. The trade-off here is the significant R&D investment required to maintain taste profiles—such as using allulose and indigestible maltodextrin—while meeting strict health-conscious consumer demands for lower caloric intake.
Frequently Asked Questions
What is the primary goal for the low-sugar Hongcho line in 2025?
Daesang is targeting 30 billion KRW in annual sales for its low-sugar Hongcho products while expanding the availability of its “LOWTAG” branded lineup.
How does the current Hongcho lineup differ from earlier versions?
The product has evolved from its original formula to incorporate functional ingredients like aloe gel, indigestible maltodextrin, and isomalto-oligosaccharides, while shifting toward low-sugar and low-calorie formulations to meet current health trends.
When will the company begin its push into international markets like Japan and Vietnam?
Daesang plans to accelerate its international market penetration starting in the second half of 2026.
Are you likely to incorporate fermented vinegar beverages into your daily routine given the recent focus on low-sugar formulations?