Hot drinks in 2024: The big picture
In 2024, coffee remains the dominant force within hot drinks in South Korea, continuing to drive overall industry dynamics, despite facing several challenges and opportunities. Hot drinks is heavily influenced by evolving consumer preferences, economic pressures, and the increasing demand for health-conscious products.
2024 key trends
While the coffee category has largely stabilised since the disruption seen during the pandemic, it faces a mixed outlook. Foodservice volume sales of coffee are recovering in South Korea as consumers return to cafés, but retail is struggling with declining sales of popular formats such as fresh ground coffee pods.
Competitive landscape
The competitive landscape in hot drinks in South Korea in 2024 is expected to see no major changes, with Dongsuh Foods Co Ltd remaining the leader, and Nestlé Korea Ltd a solid second, and the only other player to hold a double-digit retail value share. Dongsuh is not resting on its laurels; rather than being confined to the declining instant coffee mixes category, the company is proactively expanding into new areas.
Retailing developments
The retailing landscape is witnessing significant shifts in hot drinks in South Korea, particularly with the rapid growth of fresh ground coffee pods, in which retail e-commerce dominates. Consumers are increasingly turning online for their coffee needs, driven by the convenience and variety offered by online platforms.
Foodservice vs retail split
Coffee sees a delicate balance between the foodservice and retail channels. While in 2024 foodservice volume sales are continuing to recover as consumers return to cafés and restaurants, the retail segment is declining slightly in volume terms, but remains strong, particularly with the rise of premium coffee products and the at-home consumption trend.
What next for hot drinks?
Looking ahead, coffee in South Korea is expected to continue to focus on premiumisation, sustainability, and innovation in the forecast period, with consumers seeking both high quality products and convenient solutions. The demand for speciality coffee and artisanal experiences is likely to grow, supported by a discerning consumer base willing to invest in quality.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in South Korea with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks industry in South Korea, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in South Korea report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Hot Drinks in South Korea?
- To what extent are health considerations impacting consumption of Hot Drinks in South Korea?
- What are the traditional preferences in Hot Drinks in South Korea? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in South Korea?
- Which are the leading brands in Hot Drinks in South Korea?
- How are products distributed in Hot Drinks in South Korea?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in South Korea
Hot drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
Coffee in South Korea
KEY DATA FINDINGS
Stagnation for coffee in retail post-COVID-19
Instant coffee mixes at a crossroads amidst consumer shift
Emergence of new retail channels, and the speciality coffee boom
Preference for low cost but high quality coffee expected
The enduring popularity of iced coffee and health-conscious choices
The growth of online channels for fresh ground coffee pods, and emerging c-commerce influences
Tea in South Korea
KEY DATA FINDINGS
The rise of “healthy pleasure” and its limited impact on tea
Demand for functional teas is gaining momentum
Expanding the reach of premium tea offerings
Possible rise of personalised tea experiences
Capitalising on the popularity of functional tea
Integrating tea into the broader wellness ecosystem
Other Hot Drinks in South Korea
KEY DATA FINDINGS
“Healthy pleasure” trend, and declining popularity of flavoured powder drinks
Maintaining profitability is becoming a challenge
Dongsuh Foods retains its lead
Chocolate-based flavoured powder drinks set to drag the overall performance
Adapting to health-conscious consumers
Innovating in functional non-chocolate-based flavoured powder drinks
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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Why buy this report?
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- Track key industry trends, opportunities and threats
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This report originates from Passport, our Hot Drinks research and analysis database.
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