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 reached USD 902.0 Million in 2024 for coffee capsules and USD 9.6 Million in 2024 for tea capsules. IMARC Group anticipates the market to reach USD 2,058.3 Million and USD 20.8 Million respectively by 2033, exhibiting CAGRs of 9.12% and 8.55% during the 2025–2033 forecast period. Growth is driven by expansion in the food and beverage industry, increased coffee shop numbers, and demand for freshly brewed coffee.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

South Korea Coffee and Tea Capsules Market Key Takeaways

• Current Market Size (2024): USD 902.0 Million (coffee); USD 9.6 Million (tea)
• CAGR (2025-2033): 9.12% (coffee); 8.55% (tea)
• Forecast Period: 2025-2033
• Coffee and tea capsules are single-serve or twin-pack containers containing brewed milk, coffee, or ground tea leaves, designed for specific compatible machines.
• Packaging using plastic and aluminum preserves freshness and authentic flavor for extended periods.
• Rising urbanization, disposable incomes, and dietary shifts favor coffee and tea capsule adoption.
• Innovations include new flavors, blends, and brewing methods such as espresso and herbal green tea capsules.
• Flourishing e-commerce and innovative marketing strategies boost product demand.

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Market Growth Factors

The South Korean coffee and tea capsules market growth is primarily driven by significant expansion in the food and beverage (F&B) industry. Increasing consumer adoption of coffee and tea capsules is bolstered by numerous health benefits, the rising number of coffee shops, and strong demand for freshly brewed coffee. The market experienced a size of USD 902.0 Million for coffee capsules and USD 9.6 Million for tea capsules in 2024, underscoring its robust foundation.

Rapid urbanization and inflating disposable incomes have led to widespread preference for coffee and tea capsules. Consumers' shifting dietary habits and an increasing trend toward in-house coffee consumption, fueled by an interest in specialty coffees and teas, have substantially propelled market growth. The introduction of new product variants like espresso, drip coffee, and herbal green tea capsules enhance consumer options and drive sales.

Extensive research and development (R&D) in brewing technologies continuously improve water pressure control, temperature stability, and brewing time optimization, which elevates the brewing experience. Emerging sustainable packaging solutions reflect growing environmental consciousness. Innovation through flavor infusions and single-origin capsules caters to evolving consumer preferences, while digital marketing and e-commerce growth facilitate market penetration and consumer engagement.

Market Segmentation

• Product Type
• Coffee Capsules: Single-serve or twin-pack containers with brewed milk or ground coffee designed for use in compatible machines, available in various flavors and strengths.
• Tea Capsules: Similar packaging containing tea leaves or blends, offering convenience and preserving tea freshness and aroma.
• Packaging Material
• Plastic: Used to preserve freshness and aroma, compact and portable.
• Aluminum: Also maintains freshness and flavor; some capsules are fully recyclable.
• Flavor
• Espresso
• Drip Coffee
• Herbal Green Tea
• Other Flavor Infusions (vanilla, caramel, hazelnut, fruit-infused teas)
• Distribution Channel
• Supermarkets
• Online Platforms
• Specialty Stores
• Technology
• Smart Capsule Machines: Connected to mobile apps or smart home systems to customize brewing parameters and schedule brewing times.

Regional Insights

The report focuses exclusively on the South Korea market, indicating that the dominant region is South Korea itself. The coffee capsule market in South Korea reached a size of USD 902.0 Million in 2024 and is expected to grow at a CAGR of 9.12% from 2025 to 2033. The tea capsule market was USD 9.6 Million in 2024 with a forecast CAGR of 8.55% during the same period. This highlights strong regional demand and growth driven by urbanization, rising incomes, and developing specialty coffee consumption trends.

Recent Developments & News

In 2023, Nespresso introduced a new compostable range of coffee capsules made from paper, which can be disposed of at home or industrial composting facilities. Basilur Tea Export (Pvt) Ltd. is focused on creating exceptional tea blends and improving capsule design and packaging. In 2021, Kaffa launched a new 100% recyclable aluminum capsule compatible with all Nespresso machines, using innovative technology. Kaffa also produces encapsulated coffee without additives or chemicals.

Key Players

• Nescafe Dolce Gusto
• Nespresso
• Keurig Korea Ltd.
• Caffitaly System
• Illycaffè S.p.A
• Alois Dallmayr
• JARO Co. Ltd
• K-Konic Co. Ltd.
• KAFFA INT Co., Ltd.
• Basilur Tea Export (Pvt) Ltd.
• Dualit Limited
• CONF. Co., Ltd.
• Bokumjari

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