Korea's coffee industry is growing — and so are exports

Roasted coffee sales have overtaken liquid coffee as Korea’s expanding cafe market and exports drive industry growth.

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Coffee beans are seen at a cafe and dessert fair held at Kintex, Gyeonggi, on Aug. 13.

A grown-up's staple, thy name is coffee — the number of coffee lovers continues growing, and so does Korea's coffee market.

“I can’t start my day without coffee,” said a 33-year-old office worker. They drink coffee almost every day — one cup on the way to work in the morning, another after lunch and decaf after work.

“When I need a caffeine boost, I go for coffee from a budget franchise, but when I want to relax, I drink premium coffee that costs around 8,000 won ($5.70)," they said.

The domestic coffee industry was worth 3.7 trillion won in 2024, according to the Ministry of Agriculture, Food and Rural Affairs and the Korea Rural Economic Institute (KREI). The market grew 35.6 percent over six years from 2.8 trillion won in 2018.

The market for roasted coffee, including coffee beans, has grown particularly rapidly. Combined domestic sales and exports reached 1.3 trillion won in 2024, the highest among coffee product categories. It was the first time that roasted coffee overtook liquid coffee, which stood at 1.1 trillion won in 2024, since related statistics began to be compiled in 2018.

Roasted coffee grew at an annual average rate of 15.8 percent over the six years, far outpacing other categories. Instant coffee followed with average annual growth of 4.8 percent, while liquid coffee grew 2.1 percent. Prepared coffee products such as coffee mixes were the only category to contract, declining by an annual average of 0.5 percent over the same period.

“As interest in health increases, consumers are tending to prefer brewed coffee over coffee mixes that contain a lot of sugar,” said Park Mi-seong, a senior research fellow at KREI who analyzed the statistics. “This trend is likely to continue for the time being.”

Koreans’ growing appetite for coffee beans has also fueled an expansion in coffee shops. The number of businesses serving coffee and other beverages reached 107,055 in 2024, up 61.6 percent over six years.

Coffee shops also accounted for a growing share of the restaurant industry, which increased from 9.3 percent in 2018 to 13.6 percent in 2024. About one in seven food service businesses is now a coffee shop.

Korea is no longer just an importer of coffee beans. K-coffee products are also gaining popularity overseas.

Exports of coffee-related products reached $229.6 million last year, up 4.6 percent from a year earlier. Israel was the largest export market for the second consecutive year after taking the top spot in 2023. It overtook China, which had remained the largest market through 2022, to emerge as the biggest consumer of Korean coffee products abroad.

Israelis tend to prefer strong coffee containing milk or creamer, according to a Korea Agro-Fisheries & Food Trade Corporation’s report, which is why exports of Korean coffee mixes and liquid coffee to the country are expected to continue increasing.

The Israeli government also simplified coffee import procedures in January 2023 in an effort to lower high food prices, helping imported products become more price competitive.

“Consideration should be given to obtaining kosher certification to expand in the Israeli market,” the report said, referring to certification for foods prepared and processed in accordance with Jewish dietary laws.


BY KIM KYUNG-HEE, NAM SOO-HYOUN [[email protected]]

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.