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Korean 'coffee mix' enjoys rare uptick in sales

Dec. 12, 2024 - 13:29 By No Kyung-min
A shopper walks by a shelf stocked with coffee mix products at a supermarket in Seoul, Nov. 1. (Newsis)

Before the Americano became a staple of Korean coffee culture, instant coffee defined the daily caffeine ritual in South Korea.

Known here as "coffee mix," these single-serve sachets containing a blend of coffee granules, creamer and sugar, offer an affordable caffeine fix at home and in the workplace.

After a decade of decline, these budget-friendly coffee products are seeing a surge in popularity among locals and foreign visitors.

Dongsuh Foods, a Korean food and beverage manufacturer holding an over 80 percent share of the nation's coffee mix market, reported a 2.2 percent on-year increase in sales of products such as Maxim Mocha Gold and White Gold, in November.

This marks the first uptick in 10 years, reversing a trend of annual declines of 2 to 3 percent since 2014. The company's instant coffee products made up roughly half of its total food and beverage sales of 1.75 trillion won ($1.22 billion) last year.

“Consumers feeling the pinch from rising inflation appear to have turned to budget-friendly coffee options,” said an official from Dongsuh Foods.

Compared to coffee shops, these instant mixes offer substantial savings.

A cup of Maxim Mocha Gold instant coffee costs between 150 and 200 won per serving as of December, depending on package size and retailer -- far lower than what consumers pay at coffee shops, where a basic Americano runs between 1,500 and 2,000 won at budget chains and over 3,000 won at regular cafes.

The recent surge also seems to have been boosted by foreign visitors.

Coffee mix has become a sought-after item for foreign travelers. Dongsuh Foods, jointly owned by parent company Dongsuh and US food company Mondelez International, is not allowed to sell Maxim-branded products outside the country under the terms of its contract with the US partner.

"The rising popularity of Korean instant coffee mixes can be attributed in part to their exposure in popular K-drama shows like TVn's 'Vincenzo' and Disney+'s 'Moving.' We plan to continue boosting media exposure to raise brand awareness," the official said.

In the meantime, the official added that it remains to be seen whether the upward trend will continue in the coming months, citing a recent price hike due to rising coffee bean prices and higher import costs due to the strong dollar.