RISE of GROUND COFFEE SUPPLIERS MARKET IN SOUTH KOREA IN 2017

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The latest statistics show that ground coffee suppliers consumption in South Korea is definitely increased: you think have been calculated approximately 512 cups per person throughout the past year.

The Korean Customs Service, KCS, created and published an estimate of the market development of South Korea during the last ten years. This publication shows how the trade of coffee and then market both tripled since 2007 to date.

If we decided to translate this estimate in cups we could calculate an average of 26.5 billion cups of coffee served in cafes Koreans, and an average per person of 512 cups. In fact, this statistic would squirt the South Korea as one of the countries that consume more coffee in the world.

There is a subdivision to classify the consumption performed by authorized entities:

  • Classic: more than 13 billion of cups
  • Fresh roasted: 4.8 billion of cups
  • Canned beverages flavored coffees: 8.7 million of cups

Paradoxically while consumption increases and people are ordering and drink more cups a day inside bars and restaurants, the price has increased. Customers are still willing to consume drinks despite the price is increasing.

Let’s take a look at the prices for a better understanding of the phenomenon of ground coffee suppliers consumption and to be able to analyze in detail, focusing on certain aspects.

  • We reason with the local currency. The average price for a cup of fresh roasted coffee amounted to 1,636 Won. The South Korean market has reached 7.85 trillion Won over the past year, while in 2007 amounted to only 900 billion Won.
  • The taste of Koreans for coffee is changing in proportion to their income; so the market linked to this product is slowly reaching the point of saturation. This situation is putting pressure on the marks of the various retail chains and forcing them to change their marketing strategies.
  • In fact, in the past, the domestic market of Korea was dominated by blends and instant coffee. But, as mentioned above, consumption is changing and that is why chains like Starbucks and Coffee Bean and Tea Leaf began to open stores in the years 2000 continuing still encountering an important success.

The change of the consumption of coffee is dramatically changing in South Korea!

In addition to the growth of large chains, local trends are leading to a greater number of stores. These individuals not only sell but shall independently to production manage their machines for roasting and become more sophisticated to meet the diverse needs of consumers.

Then a dramatic change in the consumption of coffee, that’s what sustains an analyst of Korea Investment and Securities. “With the improvement of the standard of living, consumers tend to prefer a more upscale product, and this drink is no exception.” Goes on to say “it’s a big chain or an independent brand, quality is the key to success. As well as large chains, innumerable, small coffee shops are scattered throughout the country. It is likely that some of these fail if unable to follow this change in trend, without losing sight of the price factor. The Korea isn’t a big buyer in the global market, but the size of the market and the value of imports are growing rapidly. “