1. The Korean coffee market has grown significantly from 2007 to 2011, with total market size increasing from $1.558 billion to $3.691 billion. Coffee shop business and ready-to-drink coffee have grown the most during this period. 2. Consumption of coffee per capita in Korea has also increased substantially from 2007 to 2011, rising from 247 to 338 10g cups per year for those over 20 years old. 3. Coffee imports to Korea have grown dramatically in terms of both quantity and value. The quantity of green coffee bean imports increased 44% from 2007 to 2011, while the total payment for coffee imports increased 211% over the same period.

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