South Korea Coffee Market Growth Analysis - Forecast Trends and Outlook (2026-2035)

Competitive Landscape

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.

Key Players

Dong Suh Companies Inc.

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.

Namyang Dairy Products Co., Ltd

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.

LOTTE-Nestlé Korea Co., Ltd

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 Corporation

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.

Other key players in the market are Ediya Co., Ltd., and LUIGI LAVAZZA SPA, among others.

South Korea Coffee Report Snapshots

South Korea Coffee Market