Coffee industry grows annually, but some fall behind with fierce competitions
- 4 years ago
Coffee is now deeply engrained in Korean culture.
A recent survey suggests more than half of Koreans drink coffee habitually or as a daily ritual.
The industry continues to grow, with related imports such as coffee beans doubling over the last 5 years.
However, with an excess of supply, some shops struggle and have to close down.
Our Choi Jeong-yoon tells us more.
3-hundred and fifty cups.
That's how much coffee the average Korean adult drinks in a year.
This is almost 3 times the global average, which is around 130 cups a year.
According to a report from KB Research, households spent roughly 14 US dollars a month last year on coffee, which is double what they were spending 5 years ago.
The jump was much higher for one-person households, who tripled their coffee expenses.
The coffee market is expanding rapidly to meet this demand.
An estimated 38 coffee shops open every day in Korea, adding to a total of around 70 thousand.
Total sales at Korea's cafes, ...excluding the big, directly managed chains...place third following the United States and China, adding up to 4-point-3 billion U.S. dollars,...a 10 times jump from 2007.
But it's a risky business.
One in ten cafes lose money,... and of those that closed last year, half of them lasted less than three years.
For small cafes its even harder.
The trendy American chain Blue Bottle... has seen revenue at one of its stores jump 85 percent this year, while the bottom 20 percent of Korea's coffee shops saw sales plunge almost 50 percent.
The most powerful coffee brand in the country, according to the report, is Starbucks,... with annual sales exceeding that of the top five local brands combined.
Choi Jeong-yoon, Arirang News.
A recent survey suggests more than half of Koreans drink coffee habitually or as a daily ritual.
The industry continues to grow, with related imports such as coffee beans doubling over the last 5 years.
However, with an excess of supply, some shops struggle and have to close down.
Our Choi Jeong-yoon tells us more.
3-hundred and fifty cups.
That's how much coffee the average Korean adult drinks in a year.
This is almost 3 times the global average, which is around 130 cups a year.
According to a report from KB Research, households spent roughly 14 US dollars a month last year on coffee, which is double what they were spending 5 years ago.
The jump was much higher for one-person households, who tripled their coffee expenses.
The coffee market is expanding rapidly to meet this demand.
An estimated 38 coffee shops open every day in Korea, adding to a total of around 70 thousand.
Total sales at Korea's cafes, ...excluding the big, directly managed chains...place third following the United States and China, adding up to 4-point-3 billion U.S. dollars,...a 10 times jump from 2007.
But it's a risky business.
One in ten cafes lose money,... and of those that closed last year, half of them lasted less than three years.
For small cafes its even harder.
The trendy American chain Blue Bottle... has seen revenue at one of its stores jump 85 percent this year, while the bottom 20 percent of Korea's coffee shops saw sales plunge almost 50 percent.
The most powerful coffee brand in the country, according to the report, is Starbucks,... with annual sales exceeding that of the top five local brands combined.
Choi Jeong-yoon, Arirang News.