Market Forecast By Product Type (Whole-Bean, Ground Coffee, Instant Coffee, Coffee Pods and Capsules), By Distribution Channel (On-Trade, Off-Trade) And Competitive Landscape
Product Code: ETC177462 | Publication Date: Jan 2022 | Updated Date: Jan 2025 | Product Type: Market Research Report | |
Publisher: 6Wresearch | No. of Pages: 70 | No. of Figures: 35 | No. of Tables: 5 | |
South Korea Coffee market currently, in 2023, has witnessed an HHI of 985, Which has increased slightly as compared to the HHI of 870 in 2017. The market is moving towards highly competitive. Herfindahl index measures the competitiveness of exporting countries. The range lies from 0 to 10000, where a lower index number represents a larger number of players or exporting countries in the market while a large index number means fewer numbers of players or countries exporting in the market.
South Korea Coffee Market report thoroughly covers the market By Product Type and By Distribution Channel. The market report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.
South Korea coffee market is witnessing robust growth, driven by a booming coffee culture, and increasing consumption rates across all age groups. South Korea has become one of the largest consumers of coffee in Asia, with the beverage being an integral part of daily life and social gatherings. Key trends in the market include a surge in specialty coffee shops, the rising popularity of premium and artisanal coffee products, and the convenience of instant coffee. Growth drivers include urbanization, hectic lifestyles, and a growing preference for gourmet experiences.
According to 6Wresearch, the South Korea Coffee Market size is expected to grow at a significant CAGR of 7.5% during the forecast period 2025-2031. Several factors are propelling the growth of the South Korea coffee market. Rapid urbanization and busy lifestyles have led to a significant rise in coffee consumption as people seek quick energy boosts and moments of relaxation. The proliferation of coffee shops and specialty cafes has also boosted demand, as consumers increasingly seek high-quality coffee experiences. Technological advancements in coffee brewing and the increasing popularity of coffee pods and capsules for home use are further contributing to South Korea Coffee Market growth. Additionally, innovative product offerings and marketing strategies are enticing a younger, more adventurous consumer base.
Despite the positive growth, the South Korea coffee market faces several challenges. Stringent import regulations and high tariffs on coffee beans can lead to higher costs for end consumers. The market is also highly competitive, with a constant influx of new entrants adding pricing pressures. Additionally, fluctuating global coffee bean prices, driven by varying harvest yields and climatic conditions, pose a risk to market stability. Environmental concerns and sustainability issues related to coffee production and packaging are increasingly influencing consumer preferences and regulatory frameworks, presenting further challenges.
Leading players in the South Korea coffee market include Starbucks Korea, Lotte Chilsung Beverage Co., Ltd., Ediya Coffee Co., Ltd., and CJ Freshway. Starbucks Korea has a strong presence with a wide network of stores offering various coffee beverages and experiences.
Government initiatives supporting the South Korea coffee market include the "Agricultural Promotion Policy," which aims to improve coffee cultivation techniques and boost local production. The "Food Industry Promotion Plan" encourages innovation in the food and beverage sector, including the coffee industry, through grants and incentives for research and development. Additionally, the "Import Tariff Reduction Program" is aimed at lowering import tariffs on raw coffee beans, making high-quality coffee more affordable for local businesses and consumers.
The future outlook of the South Korea coffee market is promising, with significant growth opportunities on the horizon. Emerging trends include a growing interest in sustainable and ethically sourced coffee, the rise of cold brew and ready-to-drink coffee products, and the integration of technology in the coffee-making process. Advancements in coffee brewing equipment and increased consumer awareness about specialty coffee are expected to drive market expansion.
According to Ravi Bhandari, Research Head, 6Wresearch, instant coffee has traditionally been the leading product type due to its convenience, affordability, and long shelf life. Instant coffee mixes, which often include sugar and creamer, are particularly popular among consumers looking for a quick and easy coffee solution.
The On-Trade distribution channel is experiencing substantial growth in the South Korea coffee market. This channel includes coffee sold through cafes, restaurants, and specialty coffee shops, which are becoming increasingly popular among urban consumers. The proliferation of unique and premium coffee experiences offered by these establishments encourages frequent visits and high consumption rates. Furthermore, the social and cultural importance of coffee shops as meeting and relaxation spots adds to their appeal.
The report offers a comprehensive study of the following market segments:
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 South Korea Coffee Market Overview |
3.1 South Korea Country Macro Economic Indicators |
3.2 South Korea Coffee Market Revenues & Volume, 2021 & 2031F |
3.3 South Korea Coffee Market - Industry Life Cycle |
3.4 South Korea Coffee Market - Porter's Five Forces |
3.5 South Korea Coffee Market Revenues & Volume Share, By Product Type, 2021 & 2031F |
3.6 South Korea Coffee Market Revenues & Volume Share, By Distribution Channel, 2021 & 2031F |
4 South Korea Coffee Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.3 Market Restraints |
5 South Korea Coffee Market Trends |
6 South Korea Coffee Market, By Types |
6.1 South Korea Coffee Market, By Product Type |
6.1.1 Overview and Analysis |
6.1.2 South Korea Coffee Market Revenues & Volume, By Product Type, 2021-2031F |
6.1.3 South Korea Coffee Market Revenues & Volume, By Whole-Bean, 2021-2031F |
6.1.4 South Korea Coffee Market Revenues & Volume, By Ground Coffee, 2021-2031F |
6.1.5 South Korea Coffee Market Revenues & Volume, By Instant Coffee, 2021-2031F |
6.1.6 South Korea Coffee Market Revenues & Volume, By Coffee Pods and Capsules, 2021-2031F |
6.2 South Korea Coffee Market, By Distribution Channel |
6.2.1 Overview and Analysis |
6.2.2 South Korea Coffee Market Revenues & Volume, By On-Trade, 2021-2031F |
6.2.3 South Korea Coffee Market Revenues & Volume, By Off-Trade, 2021-2031F |
7 South Korea Coffee Market Import-Export Trade Statistics |
7.1 South Korea Coffee Market Export to Major Countries |
7.2 South Korea Coffee Market Imports from Major Countries |
8 South Korea Coffee Market Key Performance Indicators |
9 South Korea Coffee Market - Opportunity Assessment |
9.1 South Korea Coffee Market Opportunity Assessment, By Product Type, 2021 & 2031F |
9.2 South Korea Coffee Market Opportunity Assessment, By Distribution Channel, 2021 & 2031F |
10 South Korea Coffee Market - Competitive Landscape |
10.1 South Korea Coffee Market Revenue Share, By Companies, 2024 |
10.2 South Korea Coffee Market Competitive Benchmarking, By Operating and Technical Parameters |
11 Company Profiles |
12 Recommendations |
13 Disclaimer |