The South Korean scorching drinks sector is projected to develop from ₩2,712bn (US$2.3bn) in 2020 to ₩3,438.1bn (US$3bn) by 2025 at a compound annual development fee (CAGR) of 4.9% over the five-year interval, says GlobalData, a number one knowledge and analytics firm.
GlobalData’s report, ‘South Korea Sizzling Drinks – Market Evaluation and Forecasts to 2025’ reveals that the market is majorly pushed by the expansion of the recent espresso class, which is forecast to register the quickest worth CAGR of 4.9% throughout 2020–2025. That is adopted by the recent tea class, which is anticipated to file a CAGR of 4.5% throughout the identical interval.
Jhinuk Roy, Client Analyst at GlobalData, says: “Worldwide manufacturers are gaining traction within the scorching drinks sector in South Korea by offering distinctive espresso ingesting experiences in a number of flavors to shoppers. High firms like Nestlé, together with others have efficiently captured the recent drinks sector by offering numerous varieties of scorching espresso merchandise, leading to elevated client preferences.”
Per capita expenditure (PCE) of scorching drinks in South Korea elevated from US$34.7 in 2015 to US$44.3 in 2020, which was a lot larger than each the worldwide degree (US$31.8) and the regional degree (US$20.4). Moreover, per capita expenditure of scorching drinks in South Korea is anticipated to extend and attain US$57.3 by 2025.
Ajinomoto Group, Namyang Dairy Merchandise Co, and Nestlé have been the highest three firms within the South Korean scorching drinks sector by worth in 2020, whereas Maxim and South Korean Café have been the main manufacturers.
Roy concludes: “Immediate espresso being the preferred scorching espresso phase in South Korea, a major rise within the café tradition amongst shoppers has led to a excessive demand for premium on the spot espresso merchandise. The rising experimental pattern amongst South Korean shoppers may have a constructive influence on the class development going ahead, urging manufactures to reinvent their merchandise and deal with offering new number of coffees to cater to the previous’s altering wants.”