The coffee market in South Korea reached a value of D 12.46 Billion during 2018-2024. The industry is further expected to grow at a CAGR of about 9.70% in the forecast period of 2025-2034, to reach a value of USD 31.45 Billion in 2034.
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.
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.
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.
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 MarketCoffee 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.
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
By end use, the market can be divided into:
- HoReCa
- Retail
On the basis of distribution channel, the market can be segmented into:
- Hypermarkets/Supermarkets
- Convenience Stores
- Speciality Stores
- Online
- Others
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
More Insights On:
Australia Coffee and Tea Capsules Market South Korea Instant Coffee Market Coffee Pods and Capsules Market Ready to Drink Coffee Market Coffee Concentrate Market Cold Brew Coffee Market Coffee Machines Market Coffee Creamer Market Coffee Pods Market Coffee MarketTable of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 South Korea Coffee Market Analysis
6 Market Dynamics
8 Trade Data Analysis (HS Code - 901)
10 Competitive Landscape
Companies Mentioned
- Dong Suh Companies Inc.
- Namyang Dairy Products Co., Ltd
- LOTTE-Nestlé Korea Co., Ltd
- Starbucks Corporation
- Ediya Co., Ltd.
- LUIGI LAVAZZA SPA
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 150 |
| Published | July 2025 |
| Regions Covered | South Korea |
| No. of Companies Mentioned | 6 |
