Hot Drinks in South Korea
Euromonitor International's Hot Drinks in South Korea market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 79 | Publication date: May 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Coffee; Other hot drinks; Tea
Executive summary
Overall growth hindered by decline of tea
Coffee saw a good increase in volume in 2008, although overall growth was hindered by the sharp decline of tea sales. The main cause of this decline was a drop in green tea sales, due to negative publicity regarding this product area from 2006 onwards. Green tea dominates overall sales of tea in the country. As a result, green tea players shifted their focus towards ensuring safety and stressing the health-related benefits of their products but this proved inadequate in stemming decline. Due to faster-paced lifestyles for South Korean consumers, coffee also continued to gain share from tea.
Consumers prefer convenient hot drinks
South Korean consumer lifestyles became increasingly fast-paced towards the end of the review period, which changed the way that local consumers view hot drinks. Consumers now view coffee as a necessity, providing caffeine and assisting greater work productivity, as well as a luxury in terms of a social drink outside the workplace. Consumers also focused more on convenience in hot drinks. Within coffee, instant coffee thus dominates volume sales. Within tea, tea bags also continued to gain share.
Health and well-being trend continues
Consumers focused more on health-consciousness in 2008. This was part of a larger trend towards greater sophistication and increasingly Westernised lifestyles involving Western brands, higher disposable income levels and greater overseas travel and education. Because of this trend, producers shifted towards premium branded products and healthier products. Sugar-free black coffee mix and fruit/herbal tea were introduced towards the end of the review period in order to satisfy consumer demand.
Shares dominated by top three players
South Korean hot drinks is dominated by three companies, Dongsuh Foods Co Ltd, Nestlé Korea Ltd. and AmorePacific Corp. These players are expected to continue to lead into the forecast period. Other players in hot drinks tend to be small and medium-sized enterprises that lack widespread distribution. These players also lack consumer brand recognition and thus struggle to compete effectively with the leaders.
Consumers’ demand for premium products to continue increasing
The trend of consumers towards premium products is forecast to continue into the forecast period. On-trade sales of fresh coffee are notably projected to steadily increase, especially through the best-known chained coffee shops. According to local surveys, Starbucks Coffee and Dunkin Donuts will continue to see good growth during the forecast period.
Table of contents
HOT DRINKS IN SOUTH KOREA : MARKET INSIGHT
EXECUTIVE SUMMARY
Overall growth hindered by decline of tea
Consumers prefer convenient hot drinks
Health and well-being trend continues
Shares dominated by top three players
Consumers’ demand for premium products to continue increasing
KEY TRENDS AND DEVELOPMENTS
Hot drinks increased both in volume and value but tea continued to decrease
Consumers seek convenient hot drinks
Health and well-being trend continues
Domestic companies maintain leading position in South Korea
Consumers’ demand for premium products increasing
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Hot Drinks Company Shares by Value 2004-2008
Table 12 Hot Drinks Brand Shares by Value 2005-2008
Table 13 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 14 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 15 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 17 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 19 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 21 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 23 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 24 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
APPENDIX
Published Data Comparisons
Production/Import/Export Data
Table 25 Import of coffee
Table 26 Import of black tea 2001-2007
Table 27 Export of black tea 2001-2007
Table 28 Import of Green Tea 2001-2007
Table 29 Export of Green Tea 2001-2007
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SOUTH KOREA
AMOREPACIFIC CORP - HOT DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 AmorePacific Corp: Key Facts
Summary 3 AmorePacific Corp: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 4 AmorePacific Corp: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 5 AmorePacific Corp: Competitive Position 2008
DONGSUH COS INC - HOT DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Dongsuh Foods Co Ltd: Key Facts
Summary 7 Dongsuh Foods Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 8 Dongsuh Foods: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 9 Dongsuh Foods Co Ltd: Competitive Position 2008
KOOKJE FOOD CO - HOT DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Kookje Food Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 11 Kookje Food Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 12 Kookje Foods Co Ltd: Competitive Position 2008
NOKCHAWON CO LTD - HOT DRINKS - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Nokchawon Co Ltd: Key Facts
Summary 14 Nokchawon Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 15 Nokchawon Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 16 Nokchawon Co Ltd: Competitive Position 2008
COFFEE IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 Instant coffee by Speciality Type 2004-2008: off-trade volume (tonnes)
Table 31 Instant coffee by Speciality Type 2004-2008: off-trade value (Won Billion)
Table 32 Retail Sales of Coffee by Type: Volume 2003-2008
Table 33 Retail Sales of Coffee by Type: Value 2003-2008
Table 34 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 35 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 36 Standard Vs Coffee Pods 2004-2008
Table 37 Coffee Company Shares 2004-2008
Table 38 Coffee Brand Shares 2005-2008
Table 39 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 40 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 41 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 42 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
Table 44 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 45 Retail Sales of Tea by Subsector: Value 2003-2008
Table 46 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 47 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 48 Tea Company Shares 2004-2008
Table 49 Tea Brand Shares 2005-2008
Table 50 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 51 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 52 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 53 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN SOUTH KOREA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 54 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 55 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 56 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 57 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 58 Other Hot Drinks Company Shares 2004-2008
Table 59 Other Hot Drinks Brand Shares 2005-2008
Table 60 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 61 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 62 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 63 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013