Report Overview

2023

Base Year

2018-2023

Historical Year

2024-2032

Forecast Year

South Korea Coffee Market Size

The coffee market in South Korea reached a value of about USD 12.46 billion during 2018-2023. The industry is further expected to grow at a CAGR of about 9.7% in the forecast period of 2024-2032, to reach a value of USD 28.7 billion in 2032.

South Korea Coffee Market Report Summary Description Value
Base Year USD Billion 2023
Historical Period USD Billion 2018-2023
Forecast Period USD Billion 2024-2032
Market Size 2023 USD Billion 12.46
Market Size 2032 USD Billion 28.7
CAGR 2018-2023 Percentage XX%
CAGR 2024-2032 Percentage 9.7%
CAGR 2024-2032 - Market by Distribution Channels Online 13.2%
CAGR 2024-2032 - Market by End Use Retail 10.3%
Market Share 2023 - Market by Distribution Channels Online 15.4%

south korea coffee market

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South Korea Coffee Market Growth

Busy Lifestyle and the Availability of a Variety of Instant Coffees to aid the Growth of the South Korea Coffee Market

Coffee consumption is linked with productivity. To cope with the workload and stress, people drink coffee daily. It also promotes creativity and concentration and provides instant energy. Due to hectic lifestyles, people are increasingly using quick and easy-to-make coffee options like coffee pods, capsules, and instant coffee to make quality coffee at home in less time which boosts the South Korea coffee market demand. Roasters and other home brewing tools are only two examples of the many innovative inventions in the coffee industry today. Due to their constant search for new restaurants and bars, millennials and Generation Z make an excellent demographic target.

Koreans have a remarkable taste for specialty coffee, as evidenced by award-winning baristas, which have also boomed the popularity among people. As the number of specialty coffee shops increases, the demand for premium coffee increases, which further boosts the growth of the South Korea coffee market. Customers are willing to pay for the high-quality coffee that has become a medium for socialising, supporting the rise of local and international franchise coffee shops. Coffee shops like Starbucks, Costa, and Café Coffee Day prosper as a result.

South Korea Coffee Industry Trends

Product Innovation and Technological Advances to Promote the Growth of the Coffee Market

The coffee industry has expanded largely owing to simpler ordering and payment methods. New levels of standardisation in the coffee industry are now achievable due to modern technologies. Some applications facilitate the measurement procedures, enabling baristas to measure items with greater accuracy, which is a crucial trend in South Korea coffee market. This technique is used by coffee chains to maintain consistency in flavour across all of their outlets. Modern technology has an impact on coffee quality as well. The need for quick service has increased along with the popularity of coffee shops. The coffee shop workers can receive orders from seated clients provided by mobile ordering. This has enhanced the process of receiving and delivering orders. Coffee shops can now effectively manage their customer queues and run their businesses by using self-service kiosks. There is a cafe, known as 'CaFace' where they print customers' coloured photos as latte art on their coffee. Such innovations in coffee preparation, technological advancements, and quick service propel the market growth.

Recent Developments

As per the South Korea coffee market dynamics, Bacha Coffee announced in August 2024 that it is set to open its first outlet in South Korea. This coffee outlet is expected to feature a café with seating capacity for 52 customers and will sell around 200 varieties of packaged coffee.

South Korea Coffee Market Analysis

With the increased use of phones and the widespread Internet penetration, people are learning about coffee from social media, blogs, influencers, and celebrities. Starbucks and BTS collaborated for the "Be the Brightest Stars" campaign, which included limited-edition drinks, food, and merchandise available only in South Korea. That campaign supported the education of underprivileged youth, and it immensely augmented the market for coffee in the country South Korea.

The market for ready-to-drink and organic coffee is also expanding quickly and boosting South Korea coffee market opportunities because of the demand from people who are concerned about their health. Customers are abandoning carbonated beverages in favour of coffee as an instant energy source. One to two cups of coffee a day may help prevent heart failure, which occurs when the heart struggles to pump enough blood to the body. Coffee promotes the healthy functioning of the liver as coffee consumers are more likely to have liver enzyme levels within a healthy range. Furthermore, dark roast coffee reduces DNA strand breaks, which happen naturally but can cause cancer or tumours if the cells don't repair them. Such health benefits motivate customers to consume coffee, thereby bolstering the coffee market in South Korea.

Industry Outlook

According to ITC Trademap, In 2023, South Korea's coffee imports totaled 192,623 tons. As per the South Korea coffee industry analysis, Brazil was the largest exporter to South Korea with 50,378 tons, followed by Vietnam at 41,449 tons. Colombia exported 27,882 tons, while Ethiopia and Guatemala contributed 17,469 tons and 9,249 tons respectively. The United States exported 8,853 tons, India 5,196 tons, and Peru 4,366 tons. Honduras and Switzerland exported 4,035 tons and 3,345 tons respectively. Indonesia's exports were 2,791 tons, Kenya 2,647 tons, and Italy 2,503 tons. Uganda exported 1,822 tons, Costa Rica 1,750 tons, and Canada 1,407 tons. Additional exporters included Papua New Guinea (1,021 tons), Tanzania (965 tons), El Salvador (829 tons), Nicaragua (702 tons), and Malaysia (598 tons).

In 2023, South Korea's coffee exports of coffee totalled 822 tons. Major importers of coffee from South Korea included Saudi Arabia with 143 tons and Mongolia with 106 tons, which aided the growth of the South Korea coffee industry. The Russian Federation imported 95 tons, while Malaysia imported 87 tons. Hong Kong imported 80 tons, and Taiwan imported 58 tons. China's imports were 39 tons, and the United States imported 38 tons. Cambodia imported 31 tons, and Singapore imported 29 tons. The Philippines imported 21 tons, and Japan's imports were 13 tons. Other notable importers were the Netherlands (11 tons), Vietnam (8 tons), and Kuwait (7 tons). Australia and New Zealand each imported 5 tons.

The cafe scene in South Korea is thriving, with the number of cafes increasing from 69,000 in 2019 to 102,000 in 2023, creating a market valued at $1.5 billion, which increases the South Korea coffee industry revenue. In Seoul, there are 24,295 cafes, including 6,184 franchise locations. Approximately 39% of all cafe visits are made by Koreans in their 20s and 30s.

Factors Contributing to the Growth of South Korea Coffee Market Share

  • Adoption of western lifestyles has increased coffee preference.
  • Higher incomes allow more spending on premium coffee.
  • The proliferation of international and local coffee shops makes coffee accessible and is expected to increase South Korea coffee market revenue.
  • Specialty and ready-to-drink coffee options attract diverse consumers.
  • Effective marketing and social media influence boost coffee's popularity.

South Korea Coffee Market Challenges Faced by Manufacturers

  • Saturation of the market with numerous local and international coffee brands.
  • Rapid shifts in consumer tastes and preferences require constant innovation.
  • Growing demand for environmentally sustainable and ethically sourced products affects the South Korea coffee market forecast.
  • Establishing and maintaining strong brand loyalty in a highly competitive market.
  • High labour costs in South Korea may affect profitability.

Key Growth Opportunities in the South Korean Coffee Market

  • Increasing demand for high-quality, artisanal coffee.
  • Expanding the range of convenient, on-the-go coffee options.
  • As per the South Korea coffee market insights, market players are leveraging online sales platforms for broader market reach.
  • Increasing use of locally sourced ingredients and collaborations.
  • Providing personalized coffee options to cater to individual preferences.

south korea coffee market by segments

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Industry Segmentation

Coffee is a beverage made from the roasted ground beans. It is usually served either hot or cold and is one of the most consumed beverages worldwide. The coffee cherry fruit's seeds are known as coffee beans and are produced by the Coffea genus of plants. There are various coffee plants, including trees and shrubs.

By product, the market is divided into:

  • Whole-Bean
  • Ground Coffee
  • Instant Coffee
  • Coffee Pods and Capsules

By type, the South Korea coffee industry can be segmented into:

  • Robusta
  • Arabica
  • Others
CAGR 2024-2032 - Market by End Use
Retail 10.3%
HoReCa XX%

By end use, the market can be divided into:

  • HoReCa
  • Retail
CAGR 2024-2032 - Market by Distribution Channels
Online 13.2%
Speciality Stores 10.5%
Supermarkets/Hypermarkets 9.3%
Convenience Stores XX%
Others XX%

On the basis of distribution channel, the market can be segmented into:

  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Speciality Stores
  • Online
  • Others

south korea coffee market by region

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Competitive Landscape

The report provides in-depth research of the following prominent players in the South Korea coffee industry, giving a detailed understanding about the competitive landscape, capacity, and recent developments including mergers, acquisitions, and investments, capacity expansion, and plant turnarounds:

  • Dong Suh Companies Inc.
  • Namyang Dairy Products Co., Ltd
  • LOTTE-Nestlé Korea Co., Ltd
  • Starbucks Corporation
  • Ediya Co., Ltd.
  • LUIGI LAVAZZA SPA
  • Others

The EMR report provides a detailed assessment of the market on the basis of the Porter's five forces model, combined with a SWOT analysis.

Key Highlights of the Report

REPORT FEATURES DETAILS
Base Year 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Type
  • Product
  • End Use
  • Distribution Channels
Breakup by Type
  • Robusta
  • Arabica
  • Others
Breakup by Product
  • Whole-Bean
  • Ground Coffee
  • Instant Coffee
  • Coffee Pods and Capsules
Breakup by End Use
  • HoReCa
  • Retail
Breakup by Distribution Channels
  • Supermarkets/Hypermarkets
  • Convenience Stores
  • Speciality Stores
  • Online
  • Others
Market Dynamics
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Key Indicators for Demand
  • Key Indicators for Price
Trade Data Analysis
  • Major Exporting Countries
    • By Value
    • By Volume
  • Major Importing Countries
    • By Value
    • By Volume
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • Dong Suh Companies Inc.
  • Namyang Dairy Products Co., Ltd
  • LOTTE-Nestlé Korea Co., Ltd
  • Starbucks Corporation
  • Ediya Co., Ltd.
  • LUIGI LAVAZZA SPA
  • Others

South Korea Coffee Report Snapshots

South Korea Coffee Market Size

South Korea Coffee Market Growth

South Korea Coffee Market Trends

South Korea Coffee Market Analysis

South Korea Coffee Companies

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*

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Key Questions Answered in the Report

During 2018-2023, the coffee market attained a value of nearly USD 12.46 billion.

The South Korea coffee market is projected to grow at a CAGR of 9.7% between 2024 and 2032.

Busy lifestyles, increasing health awareness, celebrity influence, social media, and access to ready-to-drink coffee are the major drivers.

The inclination toward organic and sustainable coffee and technological innovation are the key industry trends.

The dominant type of coffee in the industry are Arabica and Robusta.

The leading distribution channels in the market are Hypermarkets/Supermarkets, convenience Stores, speciality stores, and online stores among others.

The major players in the South Korea coffee industry are Dong Suh Companies Inc., Namyang Dairy Products Co. Ltd, LOTTE-Nestlé Korea Co., Ltd, Starbucks Corporation, Ediya Co., Ltd., and LUIGI LAVAZZA SPA among others.

The market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach about USD 28.7 billion by 2032.

COVID-19 slowed down the growth of the market.

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