South Korea Instant Coffee Market Insights Forecasts to 2033

• The South Korea Instant Coffee Market Size was valued at USD 1.06 billion in 2023.
• The Market is growing at a CAGR of 6.12% from 2023 to 2033
• The South Korea Instant Coffee Market Size is expected to reach USD 1.92 billion by 2033

The South Korea Instant Coffee Market is anticipated to exceed USD 1.92 billion by 2033, growing at a CAGR of 6.12% from 2023 to 2033. The growing demand for coffee among young professionals and increasing utilization of online distribution channel are driving the growth of the instant coffee market in the South Korea.     

Market Overview

Instant coffee is a beverage derived from brewed coffee beans and can be consumed easily by adding hot water or milk to powder or crystals. It is easy to prepare anywhere and everywhere with one and needs only hot water to prepare. The increasing consumption of coffee is one of the major reasons for market growth. The rapid expansion of the instant coffee market in South Korea can be ascribed to the expanding acceptance of younger professionals as a result of social media’s growing influence, as well as the increasing penetration of cafes and coffee chains that target a younger demographic. As of the end of 2022, Korea Agro-Fisheries and Food Trade Corporation reported that there were approximately 99,000 cafes in the country. Furthermore, the rapid growth of online shopping in South Korea has supported the development of online marketplaces, which is anticipated to have a favorable impact on consumers’ use of these platforms when buying instant coffee.

Report Coverage

This research report categorizes the market for the South Korea instant coffee market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the instant coffee market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the instant coffee market.

Driving Factors
The increasing consumption of coffee by younger professionals along with the increasing number of cafes is fueling the market growth. Further, the increasing tourism in the country as well as the presence of best-in-class restaurants, malls, and coffee shops in the country are anticipated to drive the market growth. In addition, the rising income for middle and lower-income individuals is contributing to driving the market. The growing number of tech-savvy millennials and the fast pace of urbanization are the factors responsible for driving the market. The increasing number of South Koreans subscribing to smartphones and the proven existence of significant e-commerce

sites are contributing to market growth.

Restraining Factors

The presence of substitutes for instant coffee is restraining the market. The perception that instant coffees are of lower quality compared to traditional brewed coffee has negatively affected the adoption of instant coffee which may lead to hamper market growth.

Market Segmentation

The South Korea Instant Coffee Market share is classified into type, packaging type, and distribution channel.

• The spray-dried segment dominates the market with the largest market share during the forecast period.

The South Korea instant coffee market is segmented by type into spray-dried and freeze-dried. Among these, the spray-dried segment dominates the market with the largest market share during the forecast period. Spray-dried instant coffee is the most commonly used type along with affordability and accessibility to consumers. A fine mist of coffee extract is sprayed into a hot air chamber to quickly evaporate the moisture, leaving behind a dry coffee powder, to create spray-dried instant coffee.

• The sachets segment is dominating the market with the largest revenue share during the forecast period.       

Based on the packaging type, the South Korea instant coffee market is divided into sachets and jars. Among these, the sachets segment is dominating the market with the largest revenue share during the forecast period. Sachets are the most widely used packaging style for instant coffee. They are available in small instant coffee packets with one cup’s worth of measurements, usually used for single servings. They are popularly used among most of the customers as they are easy to use and convenient.    

• The supermarkets & hypermarkets segment is dominating the South Korea instant coffee market during the forecast period.

Based on the distribution channel, the South Korea instant coffee market is divided into supermarkets & hypermarkets, convenience store, business-to-business, specialty store, and online sales channel. Among these, the supermarkets & hypermarkets segment is dominating the South Korea instant coffee market during the forecast period. Supermarkets provide a large range of products under one roof which makes them the most favored and convenient place to purchase. They facilitate smooth purchasing due to the way the products are arranged in the shop making it simple to compare the varieties.            

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea instant coffee market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Starbucks Coffee Company
• EDIYA COFFEE COMPANY
• LOTTE-Nestlé Korea Co., Ltd
• Kanu USA
• NAMYANG DAIRY PRODUCTS CO., LTD.
• Dongsuh Companies Inc.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at South Korea, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the South Korea Instant Coffee Market based on the below-mentioned segments:

South Korea Instant Coffee Market, By Type

• Spray-Dried
• Freeze-Dried

South Korea Instant Coffee Market, By Packaging Type

• Sachets
• Jars

South Korea Instant Coffee Market, By Distribution Channel

• Supermarkets & Hypermarkets
• Convenience Store
• Business-To-Business
• Specialty Store
• Online Sales Channel