Tea outperforms, as consumers look for small indulgences and healthy options
Hot drinks in South Korea saw retail value growth in 2025, despite declining retail volumes. Category performances diverged, with tea growing due to the health trend and "small luxury" consumption, while instant coffee declined. Chocolate-based flavoured powder drinks faced pressure from Korea's low birth rate and demand for healthier options. The industry is expected to trend towards customisation, wellness, and experiential value in the forecast period, with brands adapting through innovation, sustainability, and digital engagement. Retail e-commerce has been gaining share, and digital engagement will be critical for future growth.
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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
Tea outperforms, as consumers look for small indulgences and healthy options
KEY DATA FINDINGS
Retail value growth, but volumes decline, and performances vary widely
The search for wellness in a chaotic world
Companies increasingly aim to offer affordable sustainability in hot drinks
Players use different strategies to address high prices and frustrated consumers
Convenient, healthy and sustainable products expected to drive growth
Companies expected to innovate to meet changing consumer demands
Moving forward, digital engagement will be critical for growth
Dongsuh’s wide portfolio and brand loyalty contribute to its continued lead
Nestlé performs well, especially in fresh ground coffee pods, but changes are ahead
Offline retail maintains its distribution dominance, although its share falls
Retail e-commerce sees a rising share, and even overtakes offline retail in tea
The rising share of foodservice volume sales continues
COUNTRY REPORTS DISCLAIMER
Coffee in South Korea
KEY DATA FINDINGS
Rising retail value sales of fresh coffee outweigh decline for instant coffee
Little value movement in retail as consumers turn to affordable foodservice chains
Demand for fresh coffee rises strongly as consumers value quality
Fresh coffee set to drive growth, but affordability will remain important
Dongsuh Foods exemplifies the move towards sustainability
Nestlé Korea offers a combination of quality and sustainability with its recent launch
Dongsuh Foods benefits from a loyal consumer base and zero sugar launches
Nestlé sees dynamism, but also challenges
Hypermarkets performs well due to a wide product range, with retail e-commerce also continuing to rise
Pop-up stores used for marketing, offering coffee experiences to generate interest
Coffee delivery reshapes the distribution landscape
Tea in South Korea
KEY DATA FINDINGS
Exceptional growth is driven by green tea, with its dynamism set to be maintained
Interest in health and wellness drives dynamism for tea, especially in retail
Green tea sees exceptional growth thanks to its image, health benefits and versatility
As tea is increasingly becoming a lifestyle trend, dynamism is expected to continue
Functional tea could be a growth opportunity
More companies are expected to move towards sustainable practices
Osulloc addresses its declining share with a focus on matcha
Dongsuh Foods adapts to consumer trends with clarity and convenience
Retail e-commerce sees the most dynamic sales increase and becomes dominant
Warehouse clubs sees share growth due to competitive prices
Other Hot Drinks in South Korea
KEY DATA FINDINGS
Other hot drinks faces challenges from declining birth rate and health trend
Health trend hampers growth and prompts a shift to lower sugar products
Challenge from rising cocoa prices
Value and volume declines anticipated due to the falling birth rate and changing consumer behaviour
An increasing number of low sugar launches anticipated
Opportunities by offering functional non-chocolate-based flavoured powder drinks
Jetty and Mite from Dongsuh Foods remain staples for young children
Smaller players take share from the leaders
Offline retail channels supermarkets and hypermarkets together dominate
Retail e-commerce continues its steady rise, and this is set to continue
COUNTRY REPORTS DISCLAIMER
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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This report originates from Passport, our Hot Drinks research and analysis database.
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