The South Korea coffee market was valued at USD 13.67 Billion in 2025. The industry is expected to grow at a CAGR of 9.70% during the forecast period of 2026-2035 to reach a value of USD 34.50 Billion by 2035.
The South Korea coffee market has transformed into a technology and quality-driven ecosystem. The country now ranks among Asia’s top coffee-consuming nations, with average per capita consumption reaching over 405 cups annually. From high-tech roasteries in Seoul to AI-enabled coffee kiosks, South Korea is redefining how coffee is consumed, distributed, and even grown in lab-like environments. Reports suggest that the country had 100,729 coffee shops by the end of 2022. The current market dynamics is also being backed by the government’s Ministry of SMEs and Startups, which has introduced R&D funding for food technology, including specialty beverage innovations.
Growth of the South Korea coffee market is fuelled by local chains like Ediya, mega players like Starbucks and by the thriving B2B demand from co-working spaces, hybrid offices, and boutique hotels. Automation has further boosted the growth. AI vending machine firms Fuji Electric, Crane, N&W, are scaling presence in metro hubs, offering fresh-ground cups with zero human interaction. These innovations are not only reducing operational costs but also appealing to tech-savvy urban professionals. Corporate campuses and universities are increasingly adopting these solutions to streamline beverage offerings while maintaining premium quality.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
9.7%
Value in USD Billion
2026-2035
*this image is indicative*
| South Korea Coffee Market Report Summary | Description | Value |
| Base Year | USD Billion | 2025 |
| Historical Period | USD Billion | 2019-2025 |
| Forecast Period | USD Billion | 2026-2035 |
| Market Size 2025 | USD Billion | 13.67 |
| Market Size 2035 | USD Billion | 34.50 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 9.70% |
| CAGR 2026-2035 - Market by Distribution Channels | Online | 13.2% |
| CAGR 2026-2035 - Market by End Use | Retail | 10.3% |
| Market Share 2025- Market by Distribution Channels | Online | 15.4% |
Companies in the South Korea coffee market are increasingly deploying of AI-powered coffee kiosks across transport terminals, business districts, and universities. Brands like B:eat, Takeout Drawing are rolling out robotic baristas that brew espresso-based beverages with precision and speed, catering to tech-savvy commuters. This model reduces labour costs while ensuring 24/7 availability. According to reports, the number of kiosks installed in food service establishments surged from 5,479 units in 2019 to 87,341 units in 2022, disrupting traditional HoReCa models. These kiosks now integrate IoT sensors for inventory checks and are connected to customer apps that allow real-time customisation, making them data-rich consumer touchpoints.
Small-batch roasters and direct-trade ventures are growing rapidly popular, boosting the South Korea coffee market value. Brands like Fritz Coffee Company and Momos Coffee are sourcing beans directly from micro-lots in Ethiopia and Panama, ensuring transparency and higher farmer returns. The Korea Agro-Fisheries & Food Trade Corporation (aT) reported that the value of coffee imports including green beans was USD 1.378 billion (roughly 1.9 trillion won) in 2024, an 11% increase over 2023 (USD 1.242 billion). This shift reflects a consumer pivot toward traceability and flavour uniqueness. These startups are also using blockchain tagging to log roast profiles, shipment paths, and origin farms.
The RTD segment of the South Korea coffee market, especially cold brew, has witnessed explosive growth among young professionals and gym-goers. Namyang Dairy’s Cold Brew has grown widely popular, while convenience store chains reported a significant rise in RTD coffee sales. In addition, smart labels are being adopted to indicate brew freshness and caffeine strength. For instance, GS25’s AI vending fridges can track stock movement and consumer preference, tailoring RTD inventories in real time. RTD brands are also collaborating with K-beauty and wellness brands for cross-promotions.
Climate-conscious coffee manufacturing is gaining ground in the South Korea coffee market, especially among B2B roasters and supply chain managers. A standout example is Terarosa’s carbon-neutral roastery, which uses solar-powered roasting equipment and water-saving washing techniques. Moreover, the Ministry of Environment has introduced carbon labelling for F&B products, including coffee. This pushes processors and importers to report emissions transparently. Coffee chains are also investing in carbon offset projects in Vietnam and Kenya. These developments are not only ESG-aligned but are also appealing to foreign buyers and corporate clients looking for greener procurement options in their vendor network.
Subscription-based coffee models are gaining traction in Seoul, with players like Compose Coffee offering weekly delivery of ground or whole beans via app, accelerating the South Korea coffee market development. These subscriptions use AI to recommend beans based on taste profiling and purchase history. Big data integration allows roasters to optimise bean sourcing and forecast demand, reducing wastage. Startups like Frientrip and Terarosa are also bundling coffee subscriptions with lifestyle experiences, such as café-hopping passes or remote brewing workshops, enhancing customer engagement and brand loyalty.
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The EMR’s report titled “South Korea Coffee Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product
Key Insight: All the product segments in the South Korea coffee market are evolving through technology, taste, and sustainability. Whole-bean coffee appeals to artisanal cafés and home baristas seeking freshness. Ground coffee serves mid-range consumers looking for quality with convenience. Instant coffee retains a massive legacy base, especially in workplaces and households. Coffee pods are fast-growing due to compact brewing and rising premium demand. RTD formats, especially cold brew, are booming among fitness-focused youth and commuters.
Market Breakup by Type
Key Insight: Arabica, Robusta, and other coffee varieties each have distinct appeal. Arabica dominates the South Korea coffee market with premium, traceable and specialty café formats. Robusta is the go-to for functional beverages, vending blends, and budget espresso, growing fast due to technology improvements. Other varieties, including Liberica and blends, are used in experimental roasts and limited editions for niche cafés. All three segments respond differently to trends like sustainable farming, smart roasting, and automation, creating a diverse yet converging ecosystem that serves the Korean B2B and B2C segments alike.
Market Breakup by End Use
Key Insight: The end use segment of the South Korea coffee market spans across HoReCa, retail, corporate, and vending categories. HoReCa dominates the industry with tech-driven cafés and bulk consumption. Retail is booming with home brewers and subscription ecosystems. Office coffee services are integrating wellness-based options and low-waste pods. Vending models, especially AI kiosks, support high-speed, unmanned delivery. Each channel’s evolution aligns with broader consumer expectations around convenience, quality, and ethics, making this segmentation central to B2B strategies.
Market Breakup by Distribution Channel
Key Insight: South Korea’s coffee distribution channels include hypermarkets, convenience stores, specialty stores and online channels, each with unique strengths. Hypermarkets remain reliable for bulk and everyday needs, offering in-person trial options. Convenience stores push RTD sales with new flavours and smart fridges. Speciality stores curate premium beans and educate consumers. Online channels, however, are emerging fast due to tech-savvy logistics, tailored subscriptions, and bulk-friendly pricing.
| CAGR 2026-2035 - Market by | End Use |
| Retail | 10.3% |
| HoReCa | XX% |
| CAGR 2026-2035 - Market by | Distribution Channels |
| Online | 13.2% |
| Speciality Stores | 10.5% |
| Supermarkets/Hypermarkets | 9.3% |
| Convenience Stores | XX% |
| Others | XX% |
By Product, Instant Coffee Accounts for the Largest Market Share
Instant coffee continues to dominate the South Korea coffee market revenue, while sachets become household staple. The market experiences consistent demand from older consumers and office workers favouring portability and ease. Dong Suh’s Maxwell House and Namyang’s French Café remain market leaders in this particular segment. However, innovations like freeze-drying technology that retains crema and aroma have boosted the demand growth. On the other hand, collagen-infused and vitamin-enhanced instant coffees are capturing attention from health-conscious consumers. Instant coffee also leads B2B bulk orders, especially in co-working lounges and corporate breakrooms. Firms now offer recyclable packaging and no-sugar variants, which align with workplace wellness trends and ESG procurement goals.
As per the South Korea coffee market report, coffee pods are growing popular among urban households and boutique hotels, owing to changing lifestyle and premium taste expectations. Lotte-Nestlé’s Nescafé Dolce Gusto and Starbucks’ capsule offerings dominate this space. Smart brewing machines with IoT features, like LG’s DUOBO, allow users to personalise temperature, pressure, and water levels via smartphone apps. Importantly, luxury home appliance retailers are bundling coffee pod machines with purchases, encouraging trial among mid-to-high income consumers. The segment's growth is also fed by online subscription models.
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By Type, Arabica Occupies a Considerable Share in the Market
Arabica beans dominate the South Korea coffee industry, especially in the specialty and premium café segment. With their lower caffeine and nuanced flavour profile, Arabica beans have grown popular among third-wave cafés like Anthracite and Coffee Libre. Imports primarily come from Ethiopia, Colombia, and Brazil, while traceability gains more importance among urban consumers. These beans are favoured by B2B clients like boutique hotels and fine-dining restaurants.
Robusta beans are gaining momentum in the South Korea coffee market, largely due to their cost-efficiency and rising popularity in RTD and instant blends. South Korean brands are now sourcing high-quality Robusta from Uganda and Vietnam to develop bold-tasting espresso shots and dark roasts. Its higher caffeine content and crema-friendly texture make it ideal for vending machine and capsule applications. Startups like Prefer Coffee are experimenting with fermentation techniques to tone down bitterness and elevate aroma. Furthermore, sustainability-conscious importers are opting for UTZ and Rainforest Alliance certified Robusta. The surge in high-pressure brewing gadgets and automated kiosks further supports the segment’s demand trajectory.
By End Use, HoReCa Secures the Majority of the Market Share
Hotels, restaurants, and cafés (HoReCa) remain the dominant segment boosting the South Korea coffee market revenue. Franchise giants like Ediya and The Venti are rapidly expanding, in Seoul and provincial cities. These outlets are innovating with AR menus, bean origin transparency, and even robotic latte artists. Boutique hotels now feature in-room capsule coffee experiences, driving B2B demand for machine-linked pods. Furthermore, major airports and malls are embedding smart cafés with facial recognition payment and automated service, providing quick and premium coffee accessibility in high-traffic zones.
Retail coffee purchases are accelerating due to rising home brewing culture and smart kitchen adoption. From specialty beans at Shinsegae to capsule sales at E-Mart, consumers are building their personal cafés at home, boosting the overall South Korea coffee market value. Appliance brands are launching WiFi-enabled espresso machines, while e-commerce platforms offer monthly bean boxes. South Korea’s younger generation, in particular, is fuelling this shift of blending convenience with customisation.
By Distribution Channel, Hypermarkets/Supermarkets Represent the Dominant Market Segment
Hypermarkets remain the go-to for bulk coffee purchases, particularly for instant and ground coffee, accelerating their share in the South Korea coffee market. Retail chains like Homeplus and Lotte Mart are offering exclusive SKUs and private-label premium beans, often bundled with coffee gadgets. These outlets are integrating AR-assisted shelf navigation and taste-matching displays to drive engagement. B2B buyers such as corporate offices and small hotels also prefer hypermarkets for volume discounts. The aisle layout and in-store sampling campaigns give brands a chance to influence consumer trial and loyalty.
Online sales are rapidly growing their share in the South Korea coffee market, led by platforms like Coupang and Market Kurly. These platforms enable next-day delivery of specialty beans, pods, and brewing equipment. Subscription commerce and AI-based product recommendation engines make the online journey more tailored. B2B buyers, especially co-working spaces and boutique cafés, now rely on digital platforms for sourcing bulk coffee with quality ratings and real-time pricing. Virtual barista sessions and VR tasting rooms are novel approaches driving deeper engagement. Digital-first marketing strategies are now crucial for emerging coffee brands targeting tech-oriented consumers and businesses.
The South Korean coffee market players are focusing on automation, traceability, and climate-resilient bean sourcing to future-proof operations. The market observes an increasing collaboration with food-tech startups to bring out functional coffee lines. Localisation also plays a key role, with brands tweaking flavours to match regional palettes.
South Korea coffee companies are setting up cloud kitchens and robotic cafés to cater to fast-paced consumption. Importantly, ESG has become a strategic pillar as firms are investing in sustainable roasting and recyclable packaging. With a growing Gen Z and millennial consumer base, digital innovation in loyalty, app engagement, and influencer-driven product rollouts is turning coffee from a commodity to a lifestyle identity. For B2B stakeholders, aligning with technology partners and sustainable suppliers are expected to open up new opportunities for product differentiation, attracting new client bases in co-working, hospitality, and e-commerce segments.
Established in 1975 and headquartered in Seoul, Dong Suh pioneered South Korea’s instant coffee segment through its Maxwell House line. The firm is now venturing into sustainable packaging and expanding its ready-to-drink portfolio for convenience chains and office clients. Dong Suh’s innovation lab also explores flavour enhancers and wellness-infused brews to cater to modern consumers. Its extensive logistics network supports high-volume B2B partnerships across retail and hospitality segments.
Founded in 1964 and based in Seoul, Namyang has built a stronghold with its French Café instant coffee series. The company is innovating with cold brew products enriched with milk proteins, targeting young professionals. Its cafés offer augmented reality menus, attracting tech-savvy consumers. Namyang is investing in automation and AI-based flavour profiling to streamline vending machine placements across universities, hospitals, and business complexes.
Established in 2014, LOTTE-Nestlé Korea Co., Ltd is joint venture that combines Nestlé’s global know-how with Lotte’s retail strength. The company leads the pod coffee market through Nescafé Dolce Gusto and is expanding into carbon-neutral capsules. The company leverages big data to align its retail and online offerings with changing customer preferences. Strategic bundling with home appliances also supports market penetration among premium-seeking urban consumers.
Starbucks, founded in 1971, entered the South Korean market in 1999 and operates its Asia-Pacific headquarters from Seoul. The company continues to set industry benchmarks by launching AI-driven smart cafés and subscription-based delivery. It sources beans from Rainforest Alliance-certified farms and partners with local bakeries for curated menus. Starbucks Korea also invests in barista upskilling through its Coffee Leadership Academy, reinforcing quality and consistency across its outlets.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the market are Ediya Co., Ltd., and LUIGI LAVAZZA SPA, among others.
Explore the latest trends shaping the South Korea Coffee Market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on South Korea Coffee Market trends 2026.
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In 2025, the South Korea coffee market reached an approximate value of USD 13.67 Billion.
The market is projected to grow at a CAGR of 9.70% between 2026 and 2035.
Key strategies driving the market include integrating AI-driven loyalty systems, trialling sustainable sourcing models, partnering with local cafés, and investing in smart packaging and cold chain logistics to future-proof their coffee operations in Korea.
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 2026-2035 to reach about USD 34.50 Billion by 2035.
COVID-19 slowed down the growth of the market.
The key challenges are sourcing volatility, intense urban saturation, rising labour costs, and growing pressure to meet ESG compliance across supply chains.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Product |
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| Breakup by End Use |
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| Breakup by Distribution Channels |
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| Market Dynamics |
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| Trade Data Analysis |
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| Competitive Landscape |
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| Companies Covered |
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