Roasted Coffee Sales Top Liquid Coffee for First Time in Korea's Booming Coffee Market – CoffeeTalk

The coffee market in Korea is experiencing significant growth, with roasted coffee sales surpassing liquid coffee for the first time since statistics began to be collected in 2018. In 2024, the domestic coffee industry reached a value of 3.7 trillion won, reflecting a 35.6% increase from 2.8 trillion won in 2018, as reported by the Ministry of Agriculture, Food and Rural Affairs and the Korea Rural Economic Institute (KREI). Roasted coffee, which includes coffee beans, saw remarkable growth, with combined domestic sales and exports hitting 1.3 trillion won, while liquid coffee sales amounted to 1.1 trillion won.

The rapid expansion of the roasted coffee market, growing at an annual average rate of 15.8%, contrasts sharply with the slower growth rates of other categories; instant coffee grew by 4.8%, and liquid coffee by 2.1%. Prepared coffee products faced a decline, with an annual contraction of 0.5%. This increase in preference for brewed coffee over sugary coffee mixes is attributed to a growing interest in health among consumers, as noted by KREI’s senior research fellow, Park Mi-seong.

Additionally, the coffee shop sector has expanded, leading to a 61.6% increase in the number of coffee establishments, which reached 107,055 in 2024. Coffee shops now represent a growing portion of the restaurant industry, increasing from 9.3% in 2018 to 13.6% in 2024, marking a notable shift with approximately one in seven food service businesses being a coffee shop.

Korea is transitioning from being a net importer to also exporting coffee products, with exports reaching $229.6 million last year, a 4.6% increase from the previous year. Israel has emerged as the largest export market, surpassing China. This shift reflects a preference among Israelis for strong coffee products, suggesting continued growth in exports of Korean coffee mixes and liquid coffee. Furthermore, the Israeli government has streamlined coffee import procedures since January 2023, making these products more competitively priced. Recommendations for expanding in the Israeli market include obtaining kosher certification to ensure compliance with Jewish dietary laws.

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