South Korea Instant Coffee Market Size, Forecast 2025-2034

South Korea Instant Coffee Market Outlook

The South Korea instant coffee Market is expected to grow at a CAGR of 5.4% between 2025 and 2034. Instant coffee is a desirable consumer product in the coffee industry because of its convenience, long shelf life, and branded experience.

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Key Trends in the South Korea Instant Coffee Market

Instant coffee is prepared from coffee beans and is made by roasting, grinding, and drying coffee beans to give them a longer shelf life. Instant coffee is a coffee that dissolves instantly in water, making it quick and easy to prepare. A teaspoon of instant coffee and hot water are all that is needed to blend it.  Instant coffee is useful enough to have in the cupboard because it is also a common component in baking.

Launching Innovative Flavours as Per Korean Consumers Palate is Boosting the Instant Coffee Market’s Growth

Coffee consumption has increased in recent years along with the growth of the working population. The growth of the instant coffee market drew several market participants to the coffee sector, resulting in a highly fragmented instant coffee market. competitors to develop new goods, tastes, and packaging that will draw in new customers and keep the ones they already have. New tastes including green bean, hazelnut, macha, caramel, Italian roast, mint, and French vanilla, among others have been released by market participants. Similar to this, companies have produced tiny sachets to lower the price of instant coffee. Coffee producers are creating coffee flavours that are tailored to Korean consumers' local tastes and preferences, which is augmenting the growth of the South Korea instant coffee market.

With Health Benefits and Decaffeinated Alternatives, Instant Coffee is Attracting a Health-Conscious Population

People today want healthy goods and do not want to compromise on their coffee quality, even when they have busy schedules. Several nutrients and antioxidants may be found in instant coffee. It aids in boosting metabolism, promoting brain function, improving liver health, and lowering illness risk. Instant coffee is also beneficial to longevity and mental health improvement. With less caffeine and more antioxidants, instant coffee variations are also getting healthier. In some ways, instant coffee may be healthier than fresh coffee. Since decaffeinated instant coffee is also available, it might be a great alternative for customers who enjoy the flavour and health advantages of coffee but find it difficult to tolerate the side effects of caffeine. These health benefits help attract health-conscious customers, thus promoting the consumption of instant coffee among the masses.

Convenience and Longer Shelf Life Bolster the Instant Coffee Demand in South Korea

Instant coffee is said to have a longer shelf-life than regular coffee. Some claim that instant coffee may survive for 2–20 years  when properly stored, which is in an airtight container or sealed packaging in a cold, dry location. Instant coffee packets that have been opened are also said to remain good for several years. Therefore, coffee's shelf life varies depending on its kind and storage method. Moreover, since instant coffee is simpler to prepare than fresh coffee, convenience is the primary driver driving market development. The need for handy food items like instant coffee is being fuelled by customers' fast-paced lifestyles, which is encouraging instant coffee market expansion in South Korea. Other factors such as the will to spend on high-end or premium brands are prevalent in the country due to increased disposable income and high living standards, which also propel the instant coffee market's growth.

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Market Analysis

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Based on coffee type, the South Korea instant coffee market is segmented into freeze-fried instant coffee and spray-dried instant coffee. On the basis of distribution channels, the instant coffee market of South Korea is divided into online, supermarkets and hypermarkets, and convenience stores, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the South Korea instant coffee market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans. 

• LOTTE-Nestlé Korea Co., Ltd

• Dongsuh Companies Inc.

• Namyang Dairy Products Co., Ltd.

• Starbucks Coffee Company

• Ediya Coffee Company

• Luigi Lavazza S.p.A.

• Maxpresso

• Others

Market Share by Coffee Type

Freeze-dried instant coffee  and spray-dried instant coffee are the two types of coffee available in the South Korea instant coffee industry. The flavour and aroma of the freeze-dried coffee are pretty similar to the original flavour, whereas spray-dried instant coffee has a slightly altered flavour.

Spray-drying involves spraying coffee extract in the form of small droplets into heated air. The heat instantly dries them, turning them into a fine powder or tiny fragments. In freeze-drying, coffee extract is frozen, broken up into pieces, and then dried in a vacuum at a low temperature. Since spray-dried coffee is affordable, it secures a significant market share. Furthermore, due to the increased number of coffee connoisseurs and coffee culture, more people now prefer freeze-dried coffee as well. In the forecast period, both segments will grow due to the ever-increasing demand for coffee in South Korea.

Market Share by Distribution Channels

Supermarkets and hypermarkets are big, dispersed, and have a greater customer reach than other stores, followed by convenience stores. The reason for their prevalence is that people prefer to purchase at a one-stop shop since they offer all brands and their related items in one location. The offline retail channels segment's expansion will also be fuelled by the growing retail chains and the urbanisation process. However, since COVID-19, the e-commerce platforms have greatly expanded their market and are now much preferred by the working class. 

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Competitive Landscape

Dongsuh Companies Inc.- The businesses of Dong Suh Companies Inc. include those of food and drink, packaging, logistics, food research, procurement, and export. The business sells solid coffee, liquid coffee, liquid tea, and other goods. Additionally, Dongsuh Foods makes and markets biscuits. Additionally, Dongsuh Companies Inc. is involved in the export of creamers, coffee, and tea. Seoul, South Korea, serves as the location of the business's headquarters. Dongsuh Companies Inc. was established in 1975.

Namyang Dairy Products Co., Ltd.- The Korean company Namyang Dairy Products Co Ltd is in the dairy product manufacturing business. Infant formula, special infant formula, tea, milk, soybean milk, cheese, french cafe beverage, yoghurt, and ketonica are just a few of the company's offerings. Imperial Dream XO, I Am Mother, MingdaoXiu, Star Science, Star Gold, Organic, Ai Zhi Bao, Namyang Shanyang Rufen, Xing BeiEr, and other product brands are among the company's brands.

Key Highlights of the Report