South Korean Coffee Market Surpasses $2.7 Billion, With Cafes Making Up 1 in 7 Eateries

The South Korean coffee market is booming, with its total size estimated at 3.73 trillion won ($2.7 billion USD) in 2024. This figure reflects a steady average annual growth of 5.2% since 2018, highlighting the nation's increasing appetite for coffee.

The data, released by the Ministry of Agriculture, Food and Rural Affairs and the Korea Rural Economic Institute, indicates a significant expansion in the coffee shop sector. As of 2023, there were 106,452 coffee shops operating in the country, employing 289,400 people. Cafes now represent a substantial portion of the food service industry, making up 13.4% of all businesses, meaning one in seven food service establishments is a coffee shop.

While the number of coffee processing businesses saw a slight decline of 8.0% to 1,660 in 2023, the overall market strength is evident in other areas. The import value of raw coffee beans, including roasted beans, reached $1.37 billion USD (204,841 tons), underscoring the high demand for coffee ingredients. Conversely, exports of processed coffee products like coffee mixes and instant coffee amounted to $229.6 million USD.

Among export destinations, Israel led with 18.1% of the export value, followed by China (15.4%), Australia (7.1%), the Philippines (6.5%), and Chile (5.7%). Officials noted the market's dynamism, characterized by the simultaneous growth of premium and value-oriented segments catering to diverse consumer preferences. The government plans to support the industry further through market information provision and the integration of food technology.

“

The domestic coffee industry has a very dynamic ecosystem where the premium market and the value-for-money market grow together based on segmented consumer tastes.