South Korea Coffee Market Size, Price, Trends, Report & Forecast 2024-2032

South Korea Coffee Market Outlook

The South Korea Coffee Market Size has shown a dynamic and evolving growth trajectory, fueled by a deepening coffee culture, a growing preference for specialty beverages, and the increasing demand for convenient coffee solutions. According to the latest insights from Expert Market Research (EMR), the South Korean coffee market was valued at USD 12.46 billion in 2024. The market is expected to continue its upward trend, growing at a compound annual growth rate (CAGR) of 9.7% from 2025 to 2034, ultimately reaching a projected value of USD 28.7 billion by 2034.

The country’s vibrant coffee consumption patterns and diverse market offerings, which include everything from traditional instant coffee to premium brewed varieties, are driving this robust market expansion. South Korea’s coffee culture is deeply integrated into the daily lives of its citizens, with coffee consumption increasing steadily across all demographics. This is further augmented by the surge in the number of coffee shops, the growing popularity of coffee beans, and the increasing demand for more sophisticated coffee brewing methods.

South Korea Coffee Market Share

South Korea is one of the largest coffee-consuming countries in Asia, and the coffee market continues to grow in both value and volume. The market is characterized by diverse segments, which include both retail and foodservice channels. In retail, instant coffee holds a dominant share, primarily due to its convenience and affordability. Instant coffee is particularly popular among busy professionals and students, providing an easy and quick solution for coffee cravings. The dominance of this segment is driven by the large presence of instant coffee brands, with domestic brands like Maxim and international brands such as Nestlé catering to a wide consumer base.

However, the specialty coffee segment is witnessing a significant surge in popularity, as South Koreans, especially younger generations, are increasingly seeking high-quality, artisanal coffee experiences. This shift has led to the growth of premium coffee shops and coffee beans, which focus on more elaborate brewing methods and a heightened appreciation for flavor nuances. International coffee chains such as Starbucks, along with local specialty cafes, are capitalizing on this trend, offering a variety of gourmet coffee drinks and fostering a growing coffee culture.

The retail coffee segment, including coffee beans, ground coffee, and coffee capsules, is also becoming increasingly important. As consumers look for premium and fresh coffee experiences at home, the demand for coffee beans and high-quality coffee equipment has spiked. The market share of premium coffee products is expanding, as more South Koreans become knowledgeable about different coffee types, brewing techniques, and the origins of coffee beans. Coffee capsules, in particular, are gaining traction due to their convenience and the popularity of at-home coffee machines.

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Drivers of Growth

Several factors are driving the growth of the coffee market in South Korea. One of the most significant drivers is the increasing coffee culture in the country. Coffee consumption is no longer limited to a quick caffeine fix; it has become a symbol of lifestyle and sophistication. The younger generation, in particular, is at the forefront of this trend, shifting from traditional tea-drinking habits to an increasing preference for coffee. This has contributed to a substantial rise in the number of coffee shops and cafes across urban centers, creating a coffee-first culture where people are more likely to gather at a café for social interaction or work.

Additionally, South Korea's status as a highly connected society and the rapid adoption of modern technologies are fostering a more refined coffee experience. The rising use of smartphones, online shopping platforms, and social media apps has enabled consumers to engage more with coffee brands and discover new products. Online coffee subscriptions and e-commerce platforms have contributed significantly to the distribution of coffee products, allowing consumers to access a wider range of premium coffee varieties. The convenience factor of having quality coffee delivered to homes or offices has been a game-changer in the way South Koreans engage with coffee.

Moreover, the growth of the middle-class population, coupled with rising disposable incomes, has led to an increasing willingness to spend on premium coffee products and experiences. As consumers become more educated about the different types of coffee, the demand for artisanal and craft coffee has surged. This demand has led to greater investments in high-quality coffee beans, brewing techniques, and café infrastructure, creating a positive cycle of growth within the market.

South Korea Coffee Market Trends

Several market trends are shaping the South Korean coffee landscape. A major trend is the increasing popularity of specialty coffee, which has experienced a boom in the last decade. This trend is linked to a growing appreciation for coffee as an artisanal product rather than just a commodity. Specialty coffee shops, which offer premium, single-origin coffees and expert brewing methods, are attracting a growing base of coffee aficionados who seek high-quality coffee experiences. The rise of third-wave coffee culture, which emphasizes quality, sustainability, and transparency, is evident in South Korea’s vibrant coffee scene.

Another key trend is the growing interest in sustainable and eco-friendly coffee practices. With increasing awareness of environmental issues and a desire to reduce their carbon footprint, consumers are increasingly looking for brands that prioritize sustainability. This has led to the rise of organic and fair-trade coffee, as well as an increasing preference for reusable cups and packaging. Sustainability is not just limited to the sourcing of beans; it also extends to packaging and waste reduction efforts by coffee brands.

The coffee-to-go culture is also on the rise, as South Koreans seek convenience in their fast-paced lives. Ready-to-drink (RTD) coffee beverages are becoming increasingly popular, offering consumers a quick and convenient solution for their caffeine fix. These beverages are available in a range of flavors, including iced lattes, cold brews, and sweetened coffee drinks, catering to a diverse consumer base.

South Korea Coffee Market Segmentation

The market can be divided based on type, product, end use, and distribution channels.

Market Breakup by Type

Robusta
Arabica
Others

Market Breakup by Product

Whole-Bean
Ground Coffee
Instant Coffee
Coffee Pods and Capsules

Market Breakup by End Use

HoReCa
Retail

Market Breakup by Distribution Channels

Supermarkets/Hypermarkets
Convenience Stores
Speciality Stores
Online
Others

Challenges and Opportunities

Despite the significant growth potential, the South Korean coffee market faces several challenges. One of the key hurdles is the high level of market saturation, particularly in urban areas like Seoul. With numerous coffee shops and international chains vying for consumer attention, it can be difficult for smaller or new entrants to capture market share. Additionally, intense competition can lead to price wars and pressure on profit margins.

Another challenge is the reliance on imported coffee beans, which exposes the market to fluctuations in global commodity prices. Coffee bean prices are influenced by a range of factors, including climate conditions in coffee-producing countries, supply chain disruptions, and international trade policies. These factors can lead to price volatility, which may impact both businesses and consumers.

However, these challenges also present opportunities for innovation. The increasing demand for sustainable, ethically sourced coffee opens avenues for brands to differentiate themselves by emphasizing environmental responsibility. Furthermore, there is a growing appetite for innovative coffee products, such as non-dairy coffee beverages, flavored coffee, and healthy coffee options like cold brew or nitro coffee.

The rise of e-commerce presents significant opportunities for brands to expand their reach and offer a diverse range of coffee products to a wider audience. Online platforms also provide an opportunity to leverage digital marketing and create stronger connections with consumers, particularly younger generations who are highly active on social media.