The South Korea tea market size reached a value of more than USD 346.94 Million in 2024. The South Korea tea industry is expected to grow at a CAGR of 4.20% between 2025 and 2034, reaching a value of USD 523.52 Million by 2034.
The rise of grab-and-go tea options, as well as a growing preference for organic and healthy beverages, are Positively Impacting the growth of the Tea Market in South Korea
Growing customer preference for tea over aerated beverages, particularly among consumers who are health concerned, is a key driver driving the market's expansion. Tea is a great beverage for customers of all ages due to its low caffeine concentration and high antioxidant value. Food and beverage businesses have started using the cold brew method for tea or tea drinks made with premium tea leaves as a result of the expansion of South Korea's tea sector. Convenience stores have also expanded their selection of bottled tea beverage grab-and-go items. Rising product demand is anticipated to promote market innovation.
It is projected that the introduction of new tea tastes including organic tea, white tea, green tea, chamomile tea, fruit tea, and others would provide fantastic development potential in the industry. For instance, chamomile tea, which is made from flowers, has several health advantages, including bettering heart health, digestion, blood sugar control, and sleep quality. Such health benefits aid the growth of the South Korea tea market.
Key Trends in the South Korea Tea Market
A beverage prepared from the Camellia sinensis plant is called tea (as opposed to herbal teas which are infusions made from plants that have nothing to do with Camellia sinensis). After water, tea is the most popular beverage worldwide. Tea drinking dates back to roughly 5000 years in China, according to archaeological data. Tea is not just a beverage but also an age-old custom that is particular to each culture, playing a key role in many nations. Though the exact location of the plant's first growth is unknown, it is thought that tea originated in northeast India, northern Myanmar (Burma), and southwest China.Starbucks Expanding the Tea Business with its Brand Teavana in the Tea Industry of South Korea
The global industry leader Starbucks entered the Korean premium tea market by bringing its Teavana brand to South Korea with the tagline tea reimagined. Teavana is more prevalent in South Korea than in any other country outside of the US, with 103 new licensed outlets opening in 2019. Particularly matcha tea, green tea is being used in inventive new ways. Everything uses finely ground tea powder, including drinks, snacks, and a decorative overlay of green powder on cakes and cream pastries. Starbucks has introduced two limited edition matcha beverages to its menu, sourcing the ingredients from southern Jeju. The tea segment at Starbucks continues to develop steadily in Korea, aiding the development of the South Korea tea market.The rise of grab-and-go tea options, as well as a growing preference for organic and healthy beverages, are Positively Impacting the growth of the Tea Market in South Korea
Growing customer preference for tea over aerated beverages, particularly among consumers who are health concerned, is a key driver driving the market's expansion. Tea is a great beverage for customers of all ages due to its low caffeine concentration and high antioxidant value. Food and beverage businesses have started using the cold brew method for tea or tea drinks made with premium tea leaves as a result of the expansion of South Korea's tea sector. Convenience stores have also expanded their selection of bottled tea beverage grab-and-go items. Rising product demand is anticipated to promote market innovation.
It is projected that the introduction of new tea tastes including organic tea, white tea, green tea, chamomile tea, fruit tea, and others would provide fantastic development potential in the industry. For instance, chamomile tea, which is made from flowers, has several health advantages, including bettering heart health, digestion, blood sugar control, and sleep quality. Such health benefits aid the growth of the South Korea tea market.
The Growing Celebrities Influence Aid Sales, Engagement and Creating Buzz in the Market
The influence of celebrities is quite high among the general public. In 2021, the sales of TEAZEN Kombucha tea rose by 500% in March when the member of the world’s biggest boyband member, BTS Jungkook, also known as the King of Sold Out, was seen drinking the tea on Vlive. Moreover, in 2023, Moonbyul, a member of the girl group Mamamoo, was appointed as the ambassador of The Greatea Kombucha due to her healthy and bubbly, joyful image. This celebrity marketing encourages fans to try out the products and services and improves the credibility and visibility of their products or services in the market, which further aids market growth. Koreans are willing to spend on premium tea products because of their rising disposable income and high living standards, which augment the growth of the tea industry in South Korea.Market Segmentation
The report titled “South Korea Tea Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:Market Breakup by Type
- Green Tea
- Oolang Tea
- Black Tea
- Fruit/ Herbal Tea
- Others
Market Breakup by Packaging
- Tea Bags
- Plastic Containers
- Loose Tea
- Paperboards
- Aluminium Tins
Market Breakup by Distribution Channels
- Supermarkets/ Hypermarkets
- Convenience Store
- Specialty Stores
- Online Stores
- Others
Market Share by Type
The most popular product categories among Korean consumers are green, tea, black tea, and fruit/ herbal tea. Due to its antioxidant benefits, green tea is becoming more popular among elderly people, pregnant women, and health-conscious population of South Korea. Green and herbal teas, such as chamomile and jasmine, are also frequently used as a treatment for clear skin and strong hair, driving up demand for the product. Oolong tea, a blend of black and green tea, has been shown to be useful in avoiding type 2 diabetes and high blood cholesterol levels. The item is quite well-liked in the country due to the fact that they contain very less amount of caffeine and have a high antioxidant content. Moreover, growing customer preference for tea over aerated beverages, particularly among consumers who are health concerned, is a key driver driving the tea market's expansion in South Korea.Market Share by Packaging
Growing consumer demand for eco-friendly packaging options is fueling the expansion of the South Korea tea industry. Growing demand for soothing and aromatic beverages is propelling the growth of the South Korea tea industry. Some significant factors influencing market expansion include increased globalisation, awareness regarding health benefits, rising demand for lifestyle goods, and rising disposable income. As the market is expected to see more packaging innovation because of increasing competition and high demand, the market is anticipated to flourish further during the forecast period.Market Share by Distribution Channels
The advent of e-commerce platforms and online apps, together with discounts and convenient product delivery, has had a favourable influence on the South Korea tea market supply chain. The category of speciality retailers is also anticipated to have substantial expansion in the ensuing years. Speciality stores offer a wide selection of branded teas for the convenience of customers as a result of the growing market share of brands that sell premium and organic goods. Temporary social distancing and lockdown measures resulted in import-export restrictions during the coronavirus pandemic. It had a severe impact on several industries, including the tea market. The tea industry in South Korea is expected to grow in the coming years due to the growing popularity of cafes and lounges that serve a wide range of tea varieties.Competitive Landscape
The comprehensive report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the South Korea tea market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.Dongsuh Companies Inc.
Dongsuh Companies Inc.- Food and beverages are imported, manufactured, processed, marketed, and distributed by Dongsuh Companies Inc. Additionally, in cooperation with Kraft Foods Inc., the business manufactures ceramic goods such as oil and food containers as well as packaging materials. The tea division of Dongsuh Companies Inc. was established in 2004, and the company's headquarters are in Seoul, South Korea. The company is equipped with excellent production and packaging facilities to deliver premium tea products to the market.Nokchawon Co. Ltd.
Nokchawon Co. Ltd.- In an effort to spread tea culture throughout Korea, Nokchawon was established in 1992. Nokchawon has established itself as Korea's first producer, marketer, and exporter of tea, inspired by a sincere enthusiasm for the beverage. Nokcha, which means Green Tea in its original form, represents nature. The words Green Tea and One combined stand for the very finest and unity. Beginning with green tea, creators quickly expanded their selection to include both contemporary and traditional teas as well as other made-to-order goods. The company's objective is to offer our clients throughout the world products of the finest quality.Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 South Korea Tea Market Analysis
6 Market Dynamics
8 Trade Data Analysis
10 Competitive Landscape
Companies Mentioned
- Dongsuh Companies Inc.
- Nokchawon Co. Ltd.