Korea Coffee Market

1. 1
Korea Coffee Market
TERAROSA Coffee
YUNSON, LEE
Starting coffee in Korea
*1950 Korean War
*1968
-Dong Su Food start to produce Coffee
(Instant coffee)
*1999
-Starbucks coffee in Seoul

2. 2
Korea coffee market
Total: $3.691 Billion(from Nielsen Korea/2011)
39%
24%
Instant
Coffee shop business
RTD(Ready to Drinks)
37%
2007-2011 Korea coffee market
4
3 5
1.558
1.913
2.352
2.937
3.691
3.5
3
2.5
2
1.5
1
$ Billion
0.5
0
2007 2008 2009 2010 2011

3. 3
Korea Coffee Market
• 2007 Instant Coffee : Roasted Coffee.
95% : 5%
• 2011 Instant Coffee : Roasted Coffee
85% : 15%
Korea coffee Market Portion
100%
80%
60%
40%
20%
28 29 30 33 37
18 19 22 24 24
54 52 48 43 39
0%
2007 2008 2009 2010 2011
Instant RTD Coffee shop business

4. 4
Coffee shop in Korea
• Total Coffee shop in 2006 : 1,600
in 2011: 12,000
• Major brand Coffee shop in 2006: 1,500
in 2011: 3,034
Number of Major brand
Coffee shop in Korea(2011)
Number Selling(M$)
SStarbbuckks((UUSSAA)) 445555 229988.22
Café Bene(Domestic) 730 167.5
Coffee Bean(USA) 244 133.8
Tom&Toms(Domestic) 315 62.5
HHollllys((DDomesttiic)) 334400 5577.77

5. 5
From 2007 to 2011
(10g per cup & over 20 years old only)
number of Cup
247
289 281
309
338
2007 2008 2009 2010 2011
Coffee consumption per Capital
(10g per cup & over 20 years old only)
2007 2011
248 338

6. 6
Korea Coffee importing
(2011, from Korea custom)
• Total: 130,000(t)
-(green bean, a crude article, (g , , roasted bean ))
• $ 717million
• Quantities: 44% up(Comparing to 2007)
• Total Payyment:211% upp((compparingg to 2007))
• Total coffee market growth: 3times.
Market Change(2007-2011)
• A Crude Article: 3.9%-> 6.5%
• Roasted Coffee: 2.8%->4.2%
• Green Bean: 93.8%->89.3%

7. 7
Coffee importing
Ton $(Million)
231
331 311
416
717
91 107 105 117 130
2007 2008 2009 2010 2011
Change of Coffee importing(%)
Green bean Roasted bean Crude Article
93.3
91.2 91.9 91.5
89 3
2.8
2.9
3.4 3.8
4.2
3.9
5.9 4.7 4.7
6.5
89.3
2007 2008 2009 2010 2011

8. 8
Importing of green bean(Ton)
116,395
107 148
140,000
120 000
79,37774,420
81,56983,32784,93184,543
107,148
97,82096,926
120,000
100,000
80,000
60,000
40,000
20,000
0
,
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
$
Importing of green bean($:Million)
528.085
600
500
129.086146.719
63.633 71.451 86.347
252.052234.036
177.825
316.068
400
300
200
100
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
$(Million)

9. 9
Roasted bean importing(ton)
5438
Ton
1034
1211
1610
2520
3080
3533
4471
814 803 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Roasted bean importing($:Million)
90 526
$(Million)
15 997
26.058
37.049
42.209
55.531
90.526
7.437 7.09 9.598 11.47
15.997
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

10. 10
Top 10 Countries of
green bean importing(T/1995-2012)
500 824
Ton
500,824
211,822
174,899151,366145,015
88,581
47,110 31,622 18,601 18,147
Top 10 Countries of
green bean importing($ Million 1995-2012)
692.584
$(million)
596.016588.862
439.197
276.385
198.621
72.776 85.155 72.985 72.045

11. 11
Top 5 countries
of Roasted bean importing(T/1995-2012)
18692
Ton
5629
2063 1833 1208
USA Italy Japan Swiss Brazil
Top 5 countries
of Roasted bean importing
($million1995-2012)
$(million)
206.21
73.17
20.468
6.507 12.112
USA Italy Japan Swiss Brazil

12. 12
What kinds of coffee…
Best Selling: Americano-Espresso+ Hot water
Using Blend Coffee
What kinds of coffee…
2. Hand Drip-single origin

13. 13
Coffee price in Korea
• One cup of Americano as average: $4
• Coffee price $1.5-$7
• Most expensive : Around $30
(per cup/at the hotel)
New stream in Korea
• Move from Instant to fresh roasted
coffffee
• Begin to think of coffee quality
• Want to kknow traceabbiilliity