From Cafés to Consumers, Rising Coffee Prices Grip South Korea (Yonhap)
SEOUL, Jan. 26 (Korea Bizwire) — South Korea’s appetite for coffee is proving increasingly costly.
The country’s coffee import bill jumped sharply last year, surpassing 2 trillion won for the first time, as global bean prices climbed to record levels amid climate-related supply disruptions, government data showed Sunday.
According to the Korea Agro-Fisheries & Food Trade Corporation, coffee imports totaled $1.86 billion in 2025, a 35 percent increase from a year earlier and the highest figure on record. In won terms, imports rose 41 percent to about 2.65 trillion won, reflecting both surging global prices and a weaker Korean currency.
The increase came despite little change in volume. Coffee import shipments edged down slightly to 215,792 metric tons, underscoring that higher costs — not higher consumption — drove the spike.
Coffee imports now exceed the value of ramen exports, one of South Korea’s leading food export categories, by roughly $340 million, highlighting how deeply embedded coffee has become in everyday Korean life.
International coffee prices have risen steeply since 2024. Arabica beans, which dominate specialty coffee, briefly topped $4 a pound in New York futures markets last February — an all-time high — and have remained near $3.50, roughly double their levels in 2023. Robusta beans, widely used in instant coffee, have followed a similar trajectory.
Coffee has become an indispensable part of life for Koreans. With an average annual consumption of 405 cups per person—more than twice the global average—it has evolved beyond a simple beverage into a daily ritual and cultural staple. (Yonhap)
The price surge has been fueled largely by extreme weather. Severe droughts and heavy rains in Brazil and Vietnam, the world’s two largest coffee producers, sharply reduced harvests, raising concerns that climate change could pose long-term risks to global supply.
At the same time, global demand continues to expand, including in China, where cafés have proliferated across major cities, adding further pressure to an already strained market.
“Raw bean prices are far higher than they were two or three years ago,” said a coffee industry official. “Even if the exchange rate falls somewhat, costs remain historically elevated.”
South Korea’s average won-dollar exchange rate rose to 1,422 last year, amplifying the impact of higher global prices. The Bank of Korea estimates that coffee import prices in won terms are now roughly 3.5 times higher than five years ago.
The mounting cost pressures are increasingly being passed on to consumers. Major brands including Starbucks, Coffee Bean, Nespresso and several leading domestic chains raised prices last year, with additional hikes announced in early 2026.
A survey by the Korea Consumer Organizations Council found that the price of coffee mix products rose 16.5 percent in the fourth quarter from a year earlier, signaling that Korea’s coffee boom may continue — but at a steadily rising price.
Lina Jang (linajang@koreabizwire.com)
