18 Nov 2021
South Korean hot drinks market to reach US$3bn by 2025, forecasts GlobalData
Posted in Consumer
The South Korean hot drinks sector is projected to grow from ₩2,712bn (US$2.3bn) in 2020 to ₩3,438.1bn (US$3bn) by 2025 at a compound annual growth rate (CAGR) of 4.9% over the five-year period, says GlobalData, a leading data and analytics company.
GlobalData's report, 'South Korea Hot Drinks - Market Assessment and Forecasts to 2025' reveals that the market is majorly driven by the growth of the hot coffee category, which is forecast to register the fastest value CAGR of 4.9% during 2020-2025. This is followed by the hot tea category, which is expected to record a CAGR of 4.5% during the same period.
Jhinuk Roy, Consumer Analyst at GlobalData, says: "International brands are gaining traction in the hot drinks sector in South Korea by providing unique coffee drinking experiences in several flavors to consumers. Top companies like Nestlé, along with others have successfully captured the hot drinks sector by providing various types of hot coffee products, resulting in elevated consumer preferences."
Per capita expenditure (PCE) of hot drinks in South Korea increased from US$34.7 in 2015 to US$44.3 in 2020, which was much higher than both the global level (US$31.8) and the regional level (US$20.4). Furthermore, per capita expenditure of hot drinks in South Korea is expected to increase and reach US$57.3 by 2025.
Ajinomoto Group, Namyang Dairy Products Co, and Nestlé were the top three companies in the South Korean hot drinks sector by value in 2020, while Maxim and South Korean Café were the leading brands.
Roy concludes: "Instant coffee being the most popular hot coffee segment in South Korea, a significant rise in the café culture among consumers has led to a high demand for premium instant coffee products. The growing experimental trend among South Korean consumers will have a positive impact on the category growth going forward, urging manufactures to reinvent their products and focus on providing new variety of coffees to cater to the former's changing needs."
GlobalData plc published this content on 18 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2021 12:12:09 UTC.