South Korea’s tea market surpasses 1 trillion won

While coffee remains a daily staple for many Koreans, tea culture is gaining momentum. Once considered a pastime for older generations, tea drinking is now embraced by younger consumers seeking a moment of relaxation in their busy lives. As interest in tea grows across demographics, the market is expanding rapidly.

According to market research firm Euromonitor, South Korea’s tea market reached 1.58 trillion won last year, an 8.78% increase from the previous year. The market has grown steadily from 1.1 trillion won in 2020, marking a 44% surge in just four years. Some in the retail industry cautiously predict that tea could become “the next coffee” in South Korea.

Osulloc, a tea-focused subsidiary of AmorePacific, recorded 937 billion won in sales last year, with operating profit jumping 68.7% to 92 billion won. The company attributes its growth to streamlined marketing expenses and improved offline sales strategies. Expanding its footprint, Osulloc has been increasing the number of its “Tea House” locations, where customers can participate in interactive experiences such as "Create Your Own Tea" and tea-brewing classes using traditional tea sets. Last year, the company also opened the 'Osulloc Tea Factory' in Jeju, establishing an integrated system for tea cultivation, processing, and product distribution.

The shift in consumer preferences is also reflected in coffee shop sales. At Starbucks Korea, tea-based beverages are becoming more popular. Last year, three tea drinks—Grapefruit Honey Black Tea (ranked 3rd), Starbucks Classic Milk Tea (8th), and Yuja Mint Tea (9th)—were among the chain’s top 10 best-selling drinks. This is a significant jump from 2022, when only one tea beverage made the list. A Starbucks spokesperson noted, “Tea drinks, with their clean and refreshing flavors, are increasingly replacing coffee for some customers, driving steady growth.” In response to demand, Starbucks made its previously limited-edition Peach Tea a permanent menu item starting this year.

The growing trend of “affordable luxury” has also fueled interest in tea omakase, a curated tea-tasting experience. The concept combines "omakase," meaning "to entrust" in Japanese, with tea, offering a personalized tasting session led by a tea expert. Le Méridien Seoul Myeongdong now offers a six-course tea omakase experience, featuring premium teas paired with gourmet dishes, each inspired by the works of renowned European artists.

Experts see strong potential for further growth in South Korea’s tea market. “Mindfulness practices such as tea ceremonies and meditation, which help reduce stress and anxiety, are expected to become even more popular among young people," said Seo Yong-gu, a professor of business administration at Sookmyung Women’s University. "If growth in the coffee market slows, tea could emerge as a strong alternative.”


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