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South Korea coffee market: 9% growth witnessed during 2012
Coffee in South Korea - a new market research report on 2014-04-18 04:05:02
Dongsuh Foods Co Ltd dominates the South Korea coffee market with off-trade volume share of 77% in 2012. The company has a strong brand in Maxim and good selling power. The company offers frequent promotions where, for example, it gives 20 additional instant coffee sticks when purchasing 100 stick packages. Though other market players followed the company´s strategy and marketing activities, Dongsuh Foods Co Ltd maintained its lead supported by brand power.

Coffee recorded off-trade value growth of 9% in 2012 to reach Won1.6 trillion. Instant coffee had the biggest value ratio with 94% of total coffee market. Instant coffee product satisfied consumers with different taste in sugar consumption. The product packages were usually designed to allow consumers to adjust sugar amount to their preference, packed in a tube-shaped package while sugar was concentrated on one side of the tube. This allowed consumers to easily control sugar level by holding on to that end.

Off-trade constant value of coffee is expected to grow by CAGR of 4%. Korean consumers are becoming more sophisticated about coffee taste and prefer premium products. Coffee market in 2012 is still dominated by instant mix coffee. However in other countries like Italy, France, and the US, fresh coffee has the highest sales ratio. South Korea is expected to follow the trend of western countries as consumers look for premium coffee. Even though coffee grew very strongly over the review period, there is still room to grow when looking at sharply increasing chained speciality coffee shops and imported coffee volume and value.

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