Ready-to-Drink (RTD) Coffee - South Korea

The Ready-to-Drink (RTD) Coffee market in South Korea has been experiencing significant growth in recent years.

Customer preferences: South Korean consumers have shown a growing preference for convenience and on-the-go products, which has contributed to the increasing demand for RTD coffee. The fast-paced lifestyle of urban dwellers in South Korea has led to a rise in the popularity of ready-to-drink beverages, including coffee. Additionally, the younger generation, who are more open to trying new and innovative products, has embraced RTD coffee as a convenient and trendy option.

Trends in the market: One of the key trends in the RTD coffee market in South Korea is the introduction of innovative flavors and packaging. Coffee brands are constantly innovating to cater to the diverse tastes of consumers. Unique flavors such as caramel macchiato, green tea latte, and almond latte have gained popularity among South Korean consumers. In addition, brands are also focusing on eye-catching packaging designs to attract consumers and differentiate their products in a crowded market. Another trend in the market is the increasing popularity of premium and specialty RTD coffee products. South Korean consumers are willing to pay a premium for high-quality and unique coffee experiences. This has led to the emergence of specialty coffee shops and premium RTD coffee brands that offer a wide range of options for coffee enthusiasts.

Local special circumstances: South Korea has a strong coffee culture, with coffee being a popular beverage consumed both at home and in social settings. The rise of coffee shops and cafes in the country has contributed to the growing demand for RTD coffee. South Korean consumers have developed a taste for coffee and are now looking for convenient options to enjoy their favorite beverage on-the-go.

Underlying macroeconomic factors: The growing economy and increasing disposable income in South Korea have played a significant role in the development of the RTD coffee market. As consumers have more purchasing power, they are willing to spend on premium and convenient products like RTD coffee. Additionally, the influence of Western culture and the desire to adopt a more cosmopolitan lifestyle have also contributed to the growing popularity of coffee in South Korea. In conclusion, the Ready-to-Drink (RTD) Coffee market in South Korea is experiencing growth due to the preference for convenience, the introduction of innovative flavors and packaging, the popularity of premium and specialty products, the strong coffee culture, and the underlying macroeconomic factors such as a growing economy and increasing disposable income.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.