STiR coffee and tea magazine

Volume 14, Number 1 / Spring 2025

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24 STiR coffee and tea | 2025 Issue 1 Spring (Mar/Apr/May) The amount of coffee beans imported into South Korea has nearly doubled over the last five years. 2018 2019 2020 2021 2022 2023 South Korea's Coffee Beans Import Volume(tons) Value(thousand USS) 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Source: Korea Customs Service Export/lmport Trade Statistics location in 26 years. They tap into Korean-style coffee drinks and desserts popular with Japanese in their 20s and 30s. In addition to the regular drinks sold in Japan, Japanese stores also sell limited menu items such as the Yakgwa Cream Latte, the Lucky Ssuk Latte using four-leaf clovers, and the Hallabong Yuja Smoothie. According to Hol- lys, the Yakgwa Cream Latte, which uses traditional Korean desserts, sells 1.5 times better than regular Americanos and has emerged as the store's signature item, proving that flavored coffee is in higher demand. Ediya Coffee established its first overseas franchise in Guam at the Guam Micronesia Mall in December 2023 and plans to open two more stores by 2025. The Guam branch menu provides a Korean vibe, such as honey hot- teok, dalgona ratte, and black sesame bungeoppang. They attract both tourists and locals by offering regional specialty menus. Determined to prove its halal market competitiveness, Ediya Coffee also opened stores in Malaysia in 2024. In June 2024, it signed a master fran- chise agreement with a local Malaysian restaurant franchise company and distribution specialist and aims to open 200 stores across Malaysia within the next 5 years. In addition, Paikdabang, a brand under The Born Korea company run by culinary researcher Baek Jong-won, made an early foray into the overseas market and opened its first stores in China and Singapore in 2016. Paikdabang currently operates eight stores in the Philippines and two in Singapore. Local Roasting Trends CQI arabica / robusta instructor Paul K. Kim emphasizes the South Korean roaster market's interest in better coffee and new technologies, adding that businesses must also deal with competition and supply issues. As an SCA AST/instructor and 2022-2023 CQI distinguished instructor, he runs Kim Kiljin Coffee LAB in Seoul. Kim explained that the South Korean coffee roaster market is growing quickly and highlighted four key things happening right now: More Interest in Specialty Coffee: People in Korea are moving towards high-quality, specialty coffee. They are looking for unique flavors such as an- erobic and coffee beans from specific regions like Panama and Ethiopia. This trend is pushing coffee roasters to offer more premium and artisan coffees. Home Brewing is Popular: More people are brewing coffee at home, in- creasing the demand for high-quality coffee beans. This is good news for coffee roasters that provide various options for people wanting to make great coffee at home. Café Culture: Big cities like Seoul and Busan are packed with trendy coffee shops. Café culture has made coffee a big part of daily life, influencing what types of coffee people want. Many new cof- fee roasters are opening to meet this demand. Technology in Coffee: Technological advances are changing how people buy and drink coffee. For example, mobile apps allow people to order coffee easily, and coffee shops use self-service ki- osks. These innovations make it easier for custom- ers and coffee businesses to work efficiently. However, there are some challenges, too. For example, getting high-quality coffee beans can be hard, and prices fluctuate due to global events. These challenges affect the cost and availability of coffee beans. Coffee Sustainability According to the Korea Customs Service, the amount of coffee (raw beans and whole beans) im- ported in 2023 was $1.11 billion. This is 1.7 times the amount from 5 years ago and 2.7 times the amount from 10 years ago. In general, coffee demand continues to in- crease as coffee shops are used as spaces to escape the heat and cold, talk with people, read books, and work. However, awareness of coffee sustain- ability remains low in South Korea. Sam Chung, SCA AST in sustainability, said: "In reality, countries like South Korea, which pri- marily consume coffee, often find it difficult to fully understand the concept of coffee sustain- ability. Additionally, in Korea, where many coffee businesses are small enterprises, it is challenging for them to allocate funds toward sustainability ef- forts. Since Korea is not a coffee-producing coun- try, there is very little that can be done within Ko- rea to promote coffee sustainability." He added, "There are no government-level policies for coffee sustainability, and as far as I know, coffee companies are individually making efforts by partnering with farms that work toward sustainability. Sustainability is both extremely im- portant and incredibly challenging to achieve." Chung is preparing to launch an all-encom- passing online coffee platform (www.perfectcof- fee.co.kr), which aims to help people find what they need related to coffee, particularly focusing on companies that offer reasonable prices and good quality. In conclusion, more Korean coffee chains are looking for market expansion opportunities overseas as the local market is crowded with com- petitors. Generally, they are eyeing developing countries with an affinity for Korean culture and foods. In the local market, some consumers shift to home brewing while others prefer specialty cof- fees with rich aromas and complex flavors from the coffee roasters.

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