Korea Coffee Market

Korea Coffee Market
TERAROSA Coffee
YUNSON, LEE
The evolution of coffee industry in south Korea
1968 1950 Korean War
Dong Su Food start to produc
e Coffee (Instant coffee) 1999 Starbucks coff
ee in Seoul 2000~ Espresso, Ta
keaway coffe
e spread
Coffee among the
Korea Drink Market
Coffee
21%
Milk&Say milk&
Cocoa
Soft Drink
4%
Jucy
4%
53%
10%
Green Tea
ETC
8%
Korea coffee market
Total: $4.130 Billion(from Nielsen Korea/2012)
24%
39%
Instant
Coffee shop business
RTD(Ready to Drinks)
37%
2007-2012 Korea coffee market
(265% Growing)
4.5
4
4.13
3.5
3.691
3
2.937
2.5
2.352
2
1.5
$ Billion
1.913
1.558
1
0.5
0
2007
2008
2009
2010
2011
2012
Korea coffee Market Portion
100%
28
29
30
18
19
22
80%
60%
40%
33
24
37
24
54
52
48
43
39
2007
2008
2009
2010
2011
20%
0%
Instant
RTD
Coffee shop business
Number of Coffee shops in South Korea
2006
2013 Total Number of Co
ffee shops
1,600
15,000
5 Major brand Num
ber of Coffee shops
1,500
2,700
Numbers of Major brand Coffee shops in South Korea(2012)
Major brand Numbers
Sales
(M$) Pro3it (M$) Starbucks(US)
554 369 23 Café Bene(Domestic)
811 199
9
Coffee Bean(US)
244
130
4
TOM&TOMS(Domestic)
360
59
6
Hollys(Domestic)
396
54
5
What kinds of coffee…
Best Selling: Americano-Espresso+ Hot water
Using Blend Coffee
What kinds of coffee…
2. Hand Drip-single origin
Coffee price in Korea
•  One cup of Americano as average: $4
•  Coffee price $1.5-$7
•  Most expensive : Around $30
(per cup/at the hotel)
From 2007 to 2011
(10g per cup & over 20 years old only)
number of Cup
289
281
309
338
247
2007
2008
2009
2010
2011
Number of Cups
(per Capital & per year)
2000
2013(55% Growing)
313
484
Korea Coffee importing
(2011, from Korea custom)
•  Total: 130,000(t)
-(green bean, a crude article, roasted bean )
•  $ 717million
•  Quantities: 44% up(Comparing to 2007)
•  Total Payment:211% up(comparing to 2007)
•  Total coffee market growth: 3times.
Market Change(2007-2011)
•  A Crude Article: 3.9%-> 6.5%
•  Roasted Coffee: 2.8%->4.2%
•  Green Bean: 93.8%->89.3%
Coffee importing
Ton
$(Million)
717
416
331
311
107
105
231
91
2007
2008
2009
117
2010
130
2011
Change of Coffee importing(%)
Green bean
3.9
5.9
2.8
2.9
93.3
2007
Roasted bean
Crude Article
4.7
4.7
3.4
3.8
6.5
4.2
91.2
91.9
91.5
2008
2009
2010
89.3
2011
Importing of green bean(Ton)
140,000
116,395
107,148
97,82096,926
100,000
81,56983,32784,93184,543
79,377
74,420
80,000
120,000
60,000
40,000
20,000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Importing of green bean($:Million)
600
528.085
500
400
316.068
300
200
100 63.633
252.052234.036
177.825
129.086146.719
71.451 86.347
0
2002
2003
2004
2005
2006
2007
$(Million)
2008
2009
2010
2011
Roasted bean importing(ton)
Ton
5438
4471
3533
3080
2520
814
803
2002
2003
1034
1211
2004
2005
1610
2006
2007
2008
2009
2010
2011
Roasted bean importing($:Million)
$(Million)
90.526
55.531
37.049
42.209
26.058
7.437
7.09
9.598 11.47
2002
2003
2004
2005
15.997
2006
2007
2008
2009
2010
2011
Top 10 Countries of
green bean importing(T/1995-2012)
Ton
500,824
211,822
174,899151,366
145,015
88,581
47,110 31,622
18,601 18,147
Top 10 Countries of
green bean importing($ Million 1995-2012)
$(million)
692.584
596.016588.862
439.197
276.385
198.621
72.776 85.155 72.985 72.045
Changes in Costa Rican beans export t
o South Korea
3,000
Tons
2,500
2,000
1,500
1,000
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
0
1995
500
Changes in Costa Rican beans export t
o South Korea
12,000
$1,000
10,000
8,000
6,000
4,000
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
0
1995
2,000
Top 10 Export Countries of Green beans to South Korea (2013 First half)
Tons
16,987
10,274
6,392
5,938
3,840
1,986
1,155
932
925
601
Image of Cost-Rica coffee in Korea
•  Very Well Known Name for the Public
•  Expensive coffee for Commecial section
•  Nothing new or special for Specialty Sectio
n
New stream in Korea
•  Move from Instant to fresh roasted coffee
•  Begin to think of coffee quality
•  Want to know traceability and social respo
nsibility