Key Takeaways
- In 2023, South Korea's cafe industry generated total revenue of 18.5 trillion KRW, reflecting a 7.2% increase from 2022 driven by premium coffee demand.
- The cafe market in South Korea grew at a CAGR of 5.8% from 2019 to 2023, reaching 4.2 million daily cup sales.
- South Korea's specialty coffee segment within cafes expanded by 12.3% in 2023, accounting for 28% of total cafe sales.
- 65% of South Korean millennials visit cafes 4+ times weekly, preferring artisanal brews over chains.
- 72% of cafe-goers in 2023 chose cafes for social media photo opportunities, especially desserts.
- Female consumers aged 20-39 accounted for 58% of premium cafe visits in Seoul 2023.
- Starbucks holds 32% market share with 1,900 outlets in South Korea as of 2023.
- Ediya Coffee operated 3,200 branches nationwide in 2023, leading domestic chains.
- Total independent cafes numbered 85,000 in South Korea end of 2023.
- Average annual revenue per cafe outlet was 150 million KRW in 2023.
- Starbucks Korea reported 1.2 trillion KRW sales in 2023, up 10%.
- Ediya Coffee franchise average sales hit 320 million KRW per store in 2023.
- Cafe industry employed 450,000 workers directly in 2023.
- Average cafe staff wage was 2.8 million KRW monthly in 2023.
- Part-time workers comprised 72% of cafe workforce in 2023.
South Korea's cafe industry is thriving on premium coffee trends and strong consumer demand.
Cafe Outlets and Chains
- Starbucks holds 32% market share with 1,900 outlets in South Korea as of 2023.
- Ediya Coffee operated 3,200 branches nationwide in 2023, leading domestic chains.
- Total independent cafes numbered 85,000 in South Korea end of 2023.
- Mega Coffee chain expanded to 1,500 stores in 2023, focusing on low-price strategy.
- Cafe openings in Seoul reached 12,500 new outlets in 2023 alone.
- Paul Bassett cafes totaled 450 locations across 2023, emphasizing premium espresso.
- Franchise cafe closures dropped to 4.2% in 2023 from 8% in 2022.
- Compose Coffee hit 2,100 branches by Q4 2023, fastest-growing chain.
- Angel-in-us maintained 1,800 outlets in 2023, strong in provincial areas.
- Boutique cafes under 50 sqm accounted for 62% of new openings in 2023.
- Top 10 chains controlled 55% of total cafe outlets in 2023.
- Drive-thru cafes increased to 15% of total outlets by 2023.
- Gangnam district hosted 8,200 cafes, densest in South Korea 2023.
- International chains like Coffee Bean & Tea Leaf had 120 stores in 2023.
- Roasting specialty cafes grew to 2,500 outlets nationwide in 2023.
- Average cafe size shrank to 45 sqm for new openings in 2023.
- Busan cafe count reached 15,000 in 2023, up 9% YoY.
Cafe Outlets and Chains Interpretation
Consumer Trends and Behavior
- 65% of South Korean millennials visit cafes 4+ times weekly, preferring artisanal brews over chains.
- 72% of cafe-goers in 2023 chose cafes for social media photo opportunities, especially desserts.
- Female consumers aged 20-39 accounted for 58% of premium cafe visits in Seoul 2023.
- 81% of Gen Z in South Korea prefer sustainable cafes with eco-friendly packaging in 2023.
- Average cafe dwell time increased to 75 minutes in 2023 from 55 in 2019, due to work-from-cafe trend.
- 44% of consumers switched to low-calorie cafe drinks in 2023 amid health trends.
- Nighttime cafe visits (after 8 PM) rose 22% in 2023, driven by study and dating culture.
- 67% of cafe customers in 2023 used mobile ordering, reducing wait times by 30%.
- Dessert pairing with coffee increased to 62% of orders in urban cafes 2023.
- 53% of South Koreans aged 18-24 cite cafe ambiance as primary visit reason in 2023.
- Loyalty program participation in cafes reached 76% among frequent visitors in 2023.
- Demand for non-dairy milk options in cafes surged 35% YoY in 2023.
- 49% of consumers avoid cafes with plastic straws, per 2023 survey.
- Pet-friendly cafes saw 28% visit increase from pet owners in 2023.
- 71% prefer cafes with free Wi-Fi and charging stations in 2023.
- Craft beer-infused cafe drinks gained 19% traction among 25-34 age group in 2023.
- 55% of cafe-goers read books or work remotely, up 15% since 2021.
- Solo dining in cafes rose to 41% of visits in urban areas 2023.
- Subscription coffee models adopted by 23% of regular cafe users in 2023.
Consumer Trends and Behavior Interpretation
Employment and Operations
- Cafe industry employed 450,000 workers directly in 2023.
- Average cafe staff wage was 2.8 million KRW monthly in 2023.
- Part-time workers comprised 72% of cafe workforce in 2023.
- Barista training certifications issued: 120,000 in 2023.
- Average cafe operating hours: 14 hours daily in urban areas 2023.
- Staff turnover rate in cafes was 28% annually in 2023.
- Cafes used 1.2 million tons of coffee beans yearly in 2023.
- Waste generation per cafe: 150 kg monthly, recycling at 45% in 2023.
- Energy costs averaged 15 million KRW annually per outlet 2023.
- Peak hour staffing: 4-6 employees per shift in chains 2023.
- 85% of cafes implemented POS systems by end of 2023.
- Coffee machine maintenance costs: 5 million KRW yearly average 2023.
- Supplier contracts renewed 92% on-time in cafe chains 2023.
- Health inspections passed by 97% of cafes in 2023.
- Average inventory turnover for cafes: 12 days in 2023.
- Delivery partnerships covered 88% of cafe outlets in 2023.
- Barista skill levels: 65% certified intermediate or higher 2023.
- Cafe safety training completed by 78% of staff in 2023.
- Daily cup output per cafe averaged 450 in 2023.
- Ediya Coffee employed 25,000 staff across outlets in 2023.
Employment and Operations Interpretation
Market Size and Growth
- In 2023, South Korea's cafe industry generated total revenue of 18.5 trillion KRW, reflecting a 7.2% increase from 2022 driven by premium coffee demand.
- The cafe market in South Korea grew at a CAGR of 5.8% from 2019 to 2023, reaching 4.2 million daily cup sales.
- South Korea's specialty coffee segment within cafes expanded by 12.3% in 2023, accounting for 28% of total cafe sales.
- By 2027, the South Korean cafe market is projected to reach 25.1 trillion KRW, with a CAGR of 6.4% from 2023.
- In 2022, the number of cafes in South Korea contributed to a market volume of 3.8 trillion KRW from franchised chains alone.
- Cafe industry growth in Seoul was 8.1% in 2023, outpacing national average due to urban youth consumption.
- South Korea's cafe sector saw a 15% surge in non-alcoholic beverage sales post-COVID, boosting overall market to 19.2 trillion KRW in 2023.
- The premium cafe market in South Korea valued at 2.1 trillion KRW in 2023, growing 9.5% YoY.
- From 2020-2023, South Korea's cafe industry recovered with 22% cumulative growth after pandemic dip.
- Instant coffee sales decline contributed to brewed cafe market growth of 6.7% CAGR 2018-2023.
- South Korea cafe exports of branded products reached 450 billion KRW in 2023, signaling global expansion.
- Domestic cafe chain market share grew to 45% of total industry in 2023 from 38% in 2020.
- 2023 cafe market penetration in South Korea hit 95% of urban households.
- Bubble tea cafes sub-segment grew 18.2% in 2023, adding 1.2 trillion KRW to market.
- South Korea's cafe industry FDI inflows increased 14% to 320 billion KRW in 2023.
- Vegan and plant-based cafe offerings drove 11% market segment growth in 2023.
- Total cafe outlets exceeded 120,000 in 2023, fueling 5.9% market expansion.
- Craft coffee cafes saw 13.4% YoY growth, contributing 15% to total market in 2023.
- South Korea cafe digital sales via apps reached 2.8 trillion KRW in 2023, up 25%.
- Overall cafe consumption per capita rose to 320 cups annually in 2023 from 290 in 2022.
Market Size and Growth Interpretation
Revenue and Financial Metrics
- Average annual revenue per cafe outlet was 150 million KRW in 2023.
- Starbucks Korea reported 1.2 trillion KRW sales in 2023, up 10%.
- Ediya Coffee franchise average sales hit 320 million KRW per store in 2023.
- Independent cafes' profit margin averaged 12.5% in 2023.
- Total franchise cafe royalties collected 450 billion KRW in 2023.
- Premium cafes achieved 18% gross margins vs 11% for standard in 2023.
- Coffee sales accounted for 68% of total cafe revenue in 2023.
- Delivery revenue share in cafes rose to 25% of total in 2023.
- Operating costs for cafes averaged 65% of revenue, rent at 15% in 2023.
- Top chains' EBITDA margins hit 22% in 2023 amid efficiency gains.
- Dessert sales contributed 22% to cafe revenues in urban areas 2023.
- Loyalty app redemptions saved customers 180 billion KRW in 2023.
- Franchise initial investment averaged 200 million KRW per cafe in 2023.
- Net profit per employee in cafe chains was 45 million KRW in 2023.
- Bubble tea cafes generated 1.8 trillion KRW total revenue in 2023.
- Rent inflation reduced cafe profitability by 3.2% in prime locations 2023.
- Digital payment transactions in cafes totaled 12 trillion KRW in 2023.
Revenue and Financial Metrics Interpretation
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