South Korea leverages its coffee and consumer-packaged goods processing expertise to enter the global instant coffee market.
South Korea is emerging as a global instant coffee supplier. Although the country imports all of its raw coffee beans, its decades-long history in coffee processing, advanced roasting technology, and expertise in consumer-packaged goods engineering have transformed it into a major coffee-exporting powerhouse.
Export Destinations
According to a report from the Korea Rural Economic Institute, exports of coffee-related products reached $230 million in 2024, up 4.6% from the previous year, with a sales volume of 35,349 metric tons. Israel was the largest export market, accounting for $34.6 million (18% of total exports), followed by China (15%), Australia (7%), the Philippines (6.5%), Chile (5.7%), Russia (5.5%), and Malaysia (4.4%).
Israelis tend to prefer strong coffee with milk or creamer. Demand for Korean coffee mixes and liquid coffee in the country is expected to continue rising. An official from the Ministry of Agriculture, Food and Rural Affairs explained, "This is due to the popularity of convenient stick-type coffee mixes in Israel." In 2023, the Israeli government also simplified coffee import procedures to help reduce high food prices, making imported products more price competitive.
The report recommended pursuing Kosher food certification to support expansion into the Israeli market. This certification ensures that specific food products and ingredients comply with all necessary standards of Jewish law, allowing kosher-observant consumers to purchase them.
Major Players Enter the Race
National food giants such as Dongsuh Foods, Lotte Chilsung Beverage, OKF Corporation, and Namyang Dairy Products are leading the export market. The national coffee chain Ediya Coffee has also joined the race. Ediya exports 36 products to 27 countries, including coffee mix, stick coffee, PET drinks, and drip coffee. The Special Mocha Blend is popular in the US and Mongolia; three varieties of Americano stick coffee (Original, Mild, and Special) are popular in Japan; and three types of cup coffee (Toffee Nut, Vanilla, and Cold Brew) are well received in Singapore.
The Korean domestic coffee industry was valued at KRW 3.7 trillion ($2.76 billion) in 2024, according to the Ministry of Agriculture, Food and Rural Affairs. The coffee processing industry added KRW 895 billion in value. The production value reflects major intermediate input costs, including raw materials, electricity, water, outsourced processing, repairs, fuel, and other expenses.
Breakdown of the Market Segments
In 2024, liquid coffee drinks accounted for the largest share of shipment value among coffee-related items, totaling KRW 882 billion (27%), followed by coffee mix (26%), whole bean coffee (21%), and instant coffee (20%). By export value, instant coffee accounted for the largest share at 74%, followed by liquid coffee at 21% and coffee mix at 5%.
The share of coffee processing shipments relative to food manufacturing has steadily increased since 2020. As of 2024, 1,578 registered businesses employed 6,115 people in the coffee processing industry. The industry’s operating profit was KRW 318 billion, with an operating profit margin of 14.8%.
In 2024, the country imported coffee valued at $1.3 billion, totaling 205 million tons. Among the top 10 coffee-importing countries by value, Brazil ranked first, accounting for 20.5% of the total ($275 million), followed by Colombia (12.2%), Vietnam (11.5%), the US (11.5%), Switzerland (10.1%), and Ethiopia (8.8%).
The report highlighted that, as emphasis on individual coffee preferences grows, high-caffeine coffee products have emerged in the market. Consequently, corporate manufacturers are introducing offerings such as double- and triple-shot espresso and cold brew coffee with higher caffeine content.