serves as a minor, yet real inducement in a country with one of the highest rates of PC ownership and broadband penetration in the world. The Korean market depends entirely on imports, and many importers and consumers remain unaware of the coffee varieties available from the US. However, the US enjoys a good reputation for high quality coffee.
In general, the report says, consumers tend to drink the least expensive instant coffee. Coffee is a popular and established beverage, but the market is very competitive.
Opportunities and challenges
Instant coffee has been a dominant market player since 2002 and it still holds the largest share of the market. The growth in sales of coffee mixes primarily depend on their convenience, but recently growth has been achieved using premium mixes, and as a result the quality of the coffee in mixes has improved.
In 2011, it was estimated that the Ready to Drink (RTD) section of the market had a value of approximately US$835 million. The popularity of RTD is attributed to the substantial growth of specialist coffee shop brands. Average unit prices for RTD increased by 2 per cent in 2011, mainly as a result of the ‘premium’ trend in the category. Operators of chained specialist coffee shops have collaborated with beverage manufacturers in order to produce RTD coffee through the retail channel. These specialist coffee shop branded RTD coffee products appeal to young consumers in their 20s and 30s, as they appreciate being able to enjoy the same coffee flavours and taste at a lower price. More young consumers who prefer premium coffee are expected to
May 2013 C&CI • South Korea • 43 2009
Value ($1,000) Volume (MT)
14,705 2,346
Instant coffee imports by year Instant Coffee
2008 2009 2010 2011
Coffee Mix
155.2 152.4
6.1% -1.8%
142.1 - 6.7% Retail sales by categories
be willing to pay a relatively higher price when purchasing RTD coffee. They enjoy premium RTD coffee from convenience stores, with a cheaper price than the coffee sold in specialist coffee shops. Manufacturers are expected to follow this trend with more premium products with a high-end positioning.
Huge increase in
number of coffee shops Overall, said the report, South Korea is currently the world’s 11th largest coffee market. At the end of 2011 there were over 12,300 coffee shops in Korea – up a staggering 54 per cent from just over 8,000 in 2010. Sales jumped 59.7 per cent from US$1.4 billion (1.55 trillion Korean Won) to US$2.2 billion (2.48 trillion Korean Won) in the same one-year period. A major industry source expects the Korean coffee market to grow to about US$10 billion in due course.
Koreans consume an average of 300 tonnes of coffee beans a day, or 37 million cups. Korea currently imports coffee from 83 countries, the leading provider being Vietnam
Koreans consume an average of 300 tonnes of coffee beans a day, or 37 million cups. Korea currently imports coffee from 83 countries, the leading provider being Vietnam, with an 88 per cent share, followed by Brazil at 15 per cent and Colombia at 11 per cent.
Seoul, the capital, is said to boast the highest concentration of coffee shops in any city in the world.
Duties on unroasted coffee are expected to be removed immediately upon implementation of the Korea-US agreement, and duties on roasted coffee and instant coffee will be phased-out in five annual stages. C&CI
Next Issue: July 2013
International survey of worldwide manufacturers of plant & machinery for the coffee and cocoa industries
Bonus circulation at the 11th SCAE World Speciality Coffee Conference, Nice, France
1 500 extra copies
A survey of cocoa processing Coffee and cocoa consumption in Japan Coffee production in Western South America Salvage market for coffee and cocoa Effects of climate change on coffee and cocoa Profile of a leading coffee roaster Profile of a leading trader/processor
Please email
andrew@siemex.biz or telephone: + 44 20 8949 0088 to reserve advertising space in the July 2013 issue of C&CI
845.2 975.8 1,017 1,110
RTD Coffee
20.7% 366.5 15.5% 515.5 4.2% 9.2%
678.5 864.9
Roasted Bean coffee
$Million Growth $Million Growth $Million Growth $Million Growth 146.2 11%
28.2% 127 40.6% 166 31.6% 215 27.5% 280
30% 30% 30% 30%
2010 22,852
2,875
2011 80,712
6,678 2012
104,323 7,437
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52