By Kwaak Je-yup
Koreans are not only drinking more coffee than ever but also choosing higher-quality beans this year, according to the latest trade data.
Although the rise in price is partly to blame for the enormous 70-percent jump by value, the recent tendency to source from growers of a costlier variety suggests an upward movement in tastes as well.
Given that the annual consumption in the country is still dwarfed by the world leader Finland’s 12 kilograms per capita ― Korea ranked only 57th in the world in a 2008 survey with 1.8 kilograms ― it is to be seen whether this remarkable growth can be sustained in the future.
The latest Korea Customs Service (KCS) data shows that up to November this year, the import of coffee beans ― roasted and unroasted combined ― reached $564.8 million, up 70.0 percent from $332.0 million from the same period last year.
In terms of volume, the agency recorded 111,266 tons, a 10-percent rise over 101,343 tons the year before.
In comparison, Korea imported 111,526 tons in 2010, paying $371.6 million. Back in 2007, Korea sourced 87,000 tons of coffee from abroad at $203.9 million.
Industry insiders say consumers are demanding better-tasting coffee, as witnessed by the movement away from the affordable Robusta variety towards more expensive Arabica, which is generally accepted as of higher quality.
Vietnam, the world’s largest Robusta producer, is losing ground fast in local market share, falling from 34.8 percent in 2008 to 13.8 percent last year. Arabica powerhouses of Central and South America are meanwhile making gains, at around 3 percent in the same period. Colombia currently reigns with 17.1 percent, with Brazil and Honduras following with 16.7 percent and 11.0 percent respectively.
Prices for both beans are hitting one-year lows, with Robusta’s cash price at 111.92 cents per pound and Arabica’s at 235.75 cents per pound in New York. April and May were the record-high months for both varieties however.
Coffee chains, considered the main drivers of this change in trend, are marching forward, with the top six brands, Caffe Bene, Angel-in-us, Starbucks, Holly’s, Tom & Tom's and Coffee Bean operating around 2,500 outlets nationwide.
Furthermore, the national No. 1 in instant coffee Dongsuh Foods and the global coffee chain leader Starbucks recently launched high-end instant sachets with directly-sourced Arabica coffee as its main ingredient.
Exports, while small, continues to grow as well, from almost 4,000 tons last year to 7,000 for the first 11 months of this year.