IMARC Group has recently released a new research study titled “South Korea Coffee and Tea Capsules Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.
South Korea Coffee and Tea Capsules Market Overview
The South Korea coffee and tea capsules market size recorded strong performance in 2024, with the coffee capsules segment reaching USD 902.0 million and the tea capsules segment reaching USD 9.6 million. The market is projected to expand steadily, with the coffee capsules segment expected to reach USD 2,058.3 million and the tea capsules segment expected to reach USD 20.8 million by 2033. This represents a CAGR of 9.12% for coffee capsules and 8.55% for tea capsules during 2025–2033.
Growth is driven by rising demand for convenient single-serve beverages, an expanding café culture, premiumization of at-home brewing, increasing disposable incomes, and rapid urban lifestyle shifts. Innovations in capsule machines and sustainable packaging are also elevating consumer adoption.
STUDY ASSUMPTION YEARS
- Base Year: 2024
- Historical Period: 2019–2024
- Forecast Period: 2025–2033
SOUTH KOREA COFFEE TEA CAPSULES MARKET KEY TAKEAWAYS
- The coffee capsule market was valued at USD 902.0 million in 2024.
- The tea capsule market was valued at USD 9.6 million in 2024.
- The market is set to grow at a CAGR of 9.12% (coffee) and 8.55% (tea) during 2025–2033.
- Demand is fueled by urban lifestyle changes, premium at-home coffee consumption, and convenience-focused buying patterns.
- Strong growth in online retail and specialty beverage formats is boosting distribution.
- Rising investments in capsule machine innovation and eco-friendly packaging solutions.
- Expanding café culture and consumer preference for flavored, specialty, and single-origin coffee.
- Increasing adoption of tea capsules due to herbal, fruit-infused, and functional wellness blends.
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MARKET GROWTH FACTORS
- Rising Consumption of Premium Coffee Tea
South Korea has seen rapid growth in coffee consumption in recent years, driven by an expanding café culture and premiumization trends. Consumers are increasingly choosing single-serve capsules to replicate café-style beverages at home.
- Convenience Driving Market Expansion
Single-serve capsules simplify brewing with no grinding, measuring, or cleaning, appealing strongly to busy professionals and urban households. This convenience factor continues to be one of the strongest market drivers.
- Product Innovation Flavor Diversification
Manufacturers are introducing a wide range of capsule flavors, including:
- Espresso blends
- Single-origin variants
- Herbal teas
- Fruit-infused teas
- Functional wellness teas
- Sustainable Packaging Advancements
There is increasing focus on developing:
- Compostable capsules
- Recyclable aluminum capsules
- Bio-based plastic alternatives
- Technological Advancements in Capsule Machines
Next-generation capsule machines now offer:
- Better pressure extraction
- Smart temperature control
- App connectivity
- Custom brewing automation
- Expansion of Distribution Channels
Capsules are becoming widely available across:
- Supermarkets
- Hypermarkets
- Specialty retail
- Online platforms
- Direct-to-consumer subscription models
MARKET SEGMENTATION
By Product Type
- Coffee Capsules
- Tea Capsules
By Packaging Material
- Plastic
- Aluminum
- Biodegradable materials (emerging)
By Distribution Channel
- Supermarkets Hypermarkets
- Specialty Stores
- Online Retail
- Direct Sales Subscription Services
By Consumer Segment
- Residential (primary driver)
- Commercial (offices, hotels, cafés)
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REGIONAL INSIGHTS
Most of the demand for coffee and tea capsules is concentrated in major metropolitan regions, particularly areas with dense urban populations, higher income levels, and strong café culture. These regions show stronger adoption of premium capsule machines and specialty capsule variants.
Rising e-commerce penetration across all regions is further enhancing access to capsule-based beverages.
RECENT DEVELOPMENTS MARKET TRENDS
- Launch of new flavored and specialty capsules (vanilla, caramel, fruit-infused, herbal blends).
- Expansion of eco-friendly capsule lines by leading brands.
- Integration of capsule machines with smart-home systems and mobile applications.
- Rising consumer demand for barista-style at-home brewing.
- Subscription-based delivery models gaining popularity.
KEY PLAYERS
Major companies operating in the South Korea coffee tea capsules market include:
- Nescafé Dolce Gusto
- Nespresso
- Keurig Korea Ltd.
- Illycaffè S.p.A.
- Alois Dallmayr
- JARO Co., Ltd.
- K-Konic Co., Ltd.
- Basilur Tea Export (Pvt) Ltd.
- Dualit Limited
- CONF. Co., Ltd.
- Bokumjari
These companies compete on flavor innovation, recyclable materials, specialty blends, machine RD, and customer loyalty programs.
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