Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
Coffee shops brew more tea
A customer tries a variety of teas at a Starbucks Coffee shop in Hanam. / Courtesy of Starbucks Coffee Korea
By Kwak Yeon-soo
By Kwak Yeon-soo
Starbucks and other coffee franchises here are rushing to introduce a wider range of tea-based options to increase sales as coffee consumption appears to have reached saturation point, industry analysts said Thursday.
According to Korea Customs Service data, volumes of imported coffee fell to 143,000 tons in 2018, down 1.8 percent from the previous year.
Coffee imports had been rising steadily in recent years, with inbound shipments reaching 145,600 tons in 2017, up from 41,000 tons in 2016 and 128,000 tons in 2015, the data showed. The vast majority of Korea's coffee is imported.
Industry analysts say the first decline in imports in six years is a sign that the domestic market has become saturated and consumers are now seeking something different.
“Koreans love coffee so much that the number of coffee chains has seen a continued rise in recent years. By contrast, the average sales per store have been decreasing,” an industry watcher said.
“There is a robust demand for tea as consumers are more concerned with well-being than ever, and innovation is the force that will continue to drive businesses.”
The number of Ediya Coffee chains rose from 1,240 in 2014 to 2,142 in 2017. However, the sales per store decreased from 252 million won ($221,800) to 209 million won over the same period.
Over the last three quarters, Starbucks Coffee Korea has rolled out 10 new coffee drinks, 14 new non-coffee drinks and 35 new food items, citing the popularity of its tea brand Teavana.
Teavana sales rose 20 percent in 2018 from the previous year, according to the company.
“Teavana offers unique tastes as we reinterpret the taste and aroma of tea from a modern perspective,” an official at Starbucks Coffee Korea said. “Teas come in different types, ranging from full leaf to latte.”
A Twosome Place's teas are also gaining popularity. After tying up with Singaporean tea brand TWG in May 2017, the sales of tea rose more than 30 percent in 2018 compared to 2017.
After the launch of the “EDIYA Blending Tea” brand in 2016, domestic coffee brand Ediya Coffee is enjoying rising sales of tea. In 2018, Ediya Coffee sold 9.4 million cups, triple the sales in 2016.
“The pleasure of drinking tea is that there is a lot more ways to consume it depending on ingredients and extraction methods. The flavor and aroma of tea may vary accordingly,” tea sommelier Shawn Jung said.