Ready-to-Drink (RTD) Coffee & Tea - South Korea

The Ready-to-Drink (RTD) Coffee & Tea market in South Korea has been experiencing significant growth in recent years.

Customer preferences: South Korean consumers have shown a strong preference for convenience and on-the-go products, which has contributed to the success of the RTD Coffee & Tea market. The busy lifestyles of urban dwellers and the increasing number of young professionals who are constantly on the move have created a demand for portable and ready-to-consume beverages. Additionally, the popularity of coffee culture and the growing interest in health and wellness have also fueled the demand for RTD Coffee & Tea products.

Trends in the market: One of the key trends in the South Korean RTD Coffee & Tea market is the increasing demand for healthier options. Consumers are becoming more health-conscious and are actively seeking beverages that are low in sugar, calories, and artificial additives. As a result, manufacturers are introducing new products that cater to these preferences, such as RTD Coffee & Tea with natural sweeteners or plant-based milk alternatives. Another trend in the market is the growing popularity of premium and specialty RTD Coffee & Tea products. South Korean consumers are willing to pay a premium for high-quality and unique beverages that offer a differentiated taste experience. This trend has led to the emergence of artisanal and craft RTD Coffee & Tea brands, as well as collaborations between coffee shops and beverage companies to create exclusive products.

Local special circumstances: South Korea has a strong coffee culture, with coffee shops and cafes being popular social spaces for young people. This cultural phenomenon has influenced the RTD Coffee & Tea market, as consumers are seeking products that replicate the taste and experience of freshly brewed coffee or tea. Manufacturers have responded to this demand by developing RTD products that offer a similar flavor profile and aroma to traditional coffee and tea beverages.

Underlying macroeconomic factors: The South Korean economy has been steadily growing, which has contributed to the increasing purchasing power of consumers. As disposable incomes rise, consumers are more willing to spend on premium and higher-priced products, including RTD Coffee & Tea. The growth of e-commerce and online grocery platforms has also made it easier for consumers to access a wide range of RTD Coffee & Tea products, further driving market growth. In conclusion, the Ready-to-Drink (RTD) Coffee & Tea market in South Korea is thriving due to customer preferences for convenience, health-consciousness, and premium products. The market is characterized by a growing demand for healthier options and specialty beverages, driven by the country's coffee culture and increasing purchasing power.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.