Recent consumer surveys have shown that liquid tea is the most preferred type of tea in Korea, with 64.1% of consumers preferring it, followed by infusion tea at 23.6% and powdered tea at 12.4%. Men and those in their 20s show a stronger preference for liquid tea, while women and those in their 50s lean towards infusion and powdered teas. Specifically, men prefer liquid tea at a rate of 64.9%, infusion tea at 23.1%, and powdered tea at 11.9%, while women prefer these categories at 63.2%, 24.0%, and 12.8%, respectively. Across age groups, those in their 20s have the highest preference for liquid tea (70%), while those in their 60s have the highest preference for powdered tea (22%). When buying tea, consumers prioritize tea type (50.2%), followed by price (19.9%), brand (15.1%), tea origin (9.1%), packaging capacity (3.5%), expiration date (1.0%) and packaging condition (0.4%). Men are more likely to focus on price (22.4%), while women are more likely to focus on tea type (50.4%). Among different age groups, those in their 50s prioritize tea type (63.7%), while those in their 60s value tea origin (18.0%). People in their 40s place greater importance on brand (18.8%), while those in their 30s consider price (29.5%) most important. For those in their 20s, packaging capacity is a key factor (7.3%). Over the past four years, the Korean tea market has experienced steady growth in market size and production scale. The liquid tea market expanded from KRW 600 billion in 2018 to KRW 720 billion in 2022. The infusion tea market grew from KRW 210 billion in 2018 to KRW 300 billion in 2022, while the powdered tea market grew from KRW 190 billion in 2018 to KRW 270 billion in 2022. This sustained growth reflects a broader trend of increasing consumer demand and diversification within the tea industry. In terms of production, the Korean tea market has shown significant expansion across all categories. Liquid tea production increased from KRW 540 billion in 2018 to KRW 640 billion in 2022. Infusion tea production increased from KRW 170 billion in 2018 to KRW 220 billion in 2022, while powdered tea production increased from KRW 160 billion in 2018 to KRW 210 billion in 2022. These increases highlight both increased consumer interest and industry growth in tea production. Korea’s tea export volume has also shown consistent growth, rising from 24,074 tons valued at USD 77.89 million in 2018 to 26,430 tons valued at USD 103.13 million in 2021. The increase in both volume and value underscores the growing demand for Korean tea in international markets. Major export destinations include the United States, the Netherlands, Japan, Germany, and Vietnam, reflecting the growing global interest in Korean tea products.

As of November 2023, the number of cafés in South Korea has surpassed 100,000, nearly doubling since 2018. Starbucks, the market leader by revenue, has expanded significantly, with the number of stores increasing 3.7 times over the past decade, from 467 locations in 2012 to 1,750 by the fourth quarter of 2022. South Korea ranks fourth in the world in terms of the number of Starbucks stores, behind the United States, China and Canada. In 2022, Starbucks reported approximately 2.6 trillion won in revenue, becoming the first coffee chain in the country to surpass the 1 trillion won revenue milestone. Overall, the revenue of domestic coffee specialty stores reached approximately 2.6184 trillion won in 2022. However, by the end of the third quarter of 2023, revenue had fallen to around 1.95 trillion won, a decrease of 200 billion won from the same period a year earlier. The coffee market size in South Korea was KRW 2.7179 trillion in 2020 and grew to KRW 3.1168 trillion in 2021, representing an annual growth rate of 6.6% between 2018 and 2021. This growth trend continued in 2022, reaching approximately KRW 3.1717 trillion. That year, the breakdown of the coffee market was as follows: 35.6% liquid coffee, 32.6% roasted coffee, 24.8% prepared coffee, and 7% instant coffee. The total coffee market in South Korea is estimated to grow from KRW 6 trillion in 2021 to KRW 8.6 trillion in 2022. By 2018, South Korea had already become one of the largest coffee markets in the world, ranking third in green bean consumption after the United States and China. In 2021, South Korea’s beverage market was valued at approximately 9.58 trillion won, with coffee accounting for 32.52% of the total, far outpacing carbonated beverages with a 23.96% share. A consumer survey conducted in May 2022 revealed that 45% of respondents cited coffee as their most frequently consumed beverage, three times more than carbonated beverages (14%) and four times more than milk (11%). Daily coffee consumption in South Korea is typically between 2 and 3 cups for 47.7% of respondents, with 87.8% reporting that they drink at least one cup daily. In 2023, annual per-capita coffee consumption reached 405 cups, more than double the global average of 152 cups and 1.3 times the U.S. average of 318 cups. Many Koreans drink coffee out of habit (56.1%), and this tendency is more pronounced among older people. The continued growth of the domestic coffee market has also driven Korean coffee companies to expand internationally. One notable example is Korean Macnulty Co., Ltd., the leader in the South Korean roasted coffee market. Macnulty sources green beans from more than 30 coffee-producing countries on three continents and exports roasted beans and prepared coffee products worldwide. Korea’s coffee export has steadily increased, from USD 175.79 million in 2018 to USD 233.1 million in 2023. Major export destinations for Korean coffee include Hong Kong, the United States, Taiwan, Mongolia, Malaysia, Israel, China, Australia, Russia, Canada, South Africa, and Japan.