Consumers are increasingly seeking value for their money, leading to a significant surge in sales for budget coffee franchises last year. (Image courtesy of Kobiz Media)
SEOUL, Feb. 15 (Korea Bizwire) – In an era marked by high inflation, consumers are increasingly seeking value for their money, leading to a significant surge in sales for budget coffee franchises last year.
According to NH Nonghyup Card, these affordable coffee chains, including Mega Coffee, Paik Dabang, Compose Coffee, and Mammoth Coffee, witnessed a 37% increase in sales last year compared to 2022, contrasting with a modest 9% growth for other coffee franchises like Starbucks, Hollys, Angel-in-us, and A Twosome Place.
The transaction count for budget coffee options also saw a significant rise of 35%, while other franchises experienced only a 5% increase. By December 2023, the market share of budget coffee franchises had expanded from 23% in January 2022 to 37%.
Customers of these budget-friendly coffee options predominantly fall within the 20 to 40 age group, accounting for 61% of the total. However, the most substantial growth in usage rates was observed among those aged 60 and above, with a 59% increase, followed by notable rises among teenagers (41%) and those in their 50s (43%).
NH Nonghyup Card attributes the popularity of budget coffee among students and the elderly to its affordability and accessibility, predicting that budget coffee will continue to appeal to all age groups in the future.
Ashley Song (ashley@koreabizwire.com)
