Country Profile: Hot Drinks Sector in South Korea
Summary
Hot Drinks Sector accounted for a volume share of 0.74% of the global market and 2% of the regional (Asia-Pacific) market in 2016. The sector was valued at ?1,694,172.8 million (US$1,460.4 million) in 2016 and is forecast to grow at a CAGR of 3.1% during 2016-2021.Growth in the sector is mainly driven by rising coffee culture in the country, supported by increasing network of Specilist Cafés. Per capita consumption of Hot Drinks products stood at 1.63kg, as compared to the global level of 2.17kg, however higher than the regional level of 1.21Kg in 2016.
Hot Coffee was the largest with value sales of ?1,420,520.2 million (US$1,224.5 million) in 2016. The market is expected to grow at a CAGR of 3.1% during the forecast period (2016-2021), while Hot Tea and Other Hot Drinks are expected to record CAGRs of 3% and 2.1% respectively.
Convenience Stores accounts for a leading share in the distribution of Hot Drinks in South Korea. It accounted for 47.5% share in 2016, followed by Hypermarkets & Supermarkets with a 37.6% share. On-trade transactions held a 8.2% value share in the same year.
Flexible Packaging is the most commonly used package material in the South Korean Hot Drinks Sector. In 2016, it accounted for a share of 59.1%, followed by Glass and Paper & Board with shares of 33.1% and 5.5% respectively. The consumption of Hot Drinks is high among the male population in South Korea. Moreover, consumption is particularly high among those consumers who received Tertiary education. In terms of consumption by age group, Older Consumers accounted for 31.7% share in 2016. Maxim is the leading brand in the South Korean Hot Drinks Sector. It held a value share of 17.9% in 2016, while the top five brands in the sector accounted for a combined share of55.3%in the same year.
The report “Country Profile: Hot Drinks Sector in South Korea” provides insights on high growth markets to target, trends in the usage of packaging materials, category level distribution channel data and market share of brands.
In particular, this report provides the following analysis –
– Market data: Overall market value and volume data with growth analysis for 2011-2021. The overall market value and volume included in the report is split on the basis of On-trade and Off-trade
– Category coverage: Value and growth analysis for Hot Coffee, Hot Tea and Other Hot drinks with inputs on individual category share within each market and the change in their market share forecast for 2016-2021
– Leading players: Market share of brands and private labels, including private label growth analysis from 2011-2016
– Distribution data: Percentage of sales within each market through distribution channels such as On-trade, Hypermarkets & Supermarkets, Convenience Stores, Food & Drinks Specialists, eRetailers and others
– Packaging data: consumption breakdown for package materials and pack types in each market, in terms of percentage share of number of units sold. Package material data for Glass, Flexible Packaging, Paper & Board, Rigid Plastics, Rigid Metal and others; pack type data for: Carton, Bag/Sachet, Tub, Bottle, Jar and Stand Up Pouch.
Companies mentioned in this report: Ajinomoto Group, Namyang Dairy Products Co, Jacobs Douwe Egberts, Amorepacific Corporation, O`Sulloc., Dongsuh, Lotte Co., Ltd., Jardin Café Solution S.A., McNulty`s Tea & Coffee Co., UCC Ueshima Coffee Co Ltd, Ottogi Co, Ltd., Songwon, Nestle, Teazen
Scope
– The Hot Drinks sector in South Korea is forecast to grow at 3.1% CAGR in value terms during 2016-2021
– The per capita consumption of Hot Drinks is lower in South Korea compared to the global level
– Convenience Stores account for the leading share in the distribution of Hot Drinks in South Korea
– Maxim leads the South Korean Hot Drinks sector in both value and volume terms
– Flexible Packaging is the most commonly used package material in the South Korean Hot Drinks sector
Reasons to buy
– Identify high potential categories and explore further market opportunities based on detailed value and volume analysis
– Existing and new players can analyze key distribution channels to identify and evaluate trends and opportunities
– Gain an understanding of the total competitive landscape based on detailed brand share analysis to plan effective market positioning
– Access the key and most influential consumer trends driving Hot Drinks products consumption, and how they influence consumer behavior in the market which will help determine the best audiences to target
– Our team of analysts have placed a significant emphasis on changes expected in the sector that will provide a clear picture of the opportunities that can be tapped over the next five years, resulting in revenue expansion
– The packaging analysis report helps manufacturers, in identifying the most commonly used packaging materials in the sector
– Analysis on key macro-economic indicators such as GDP per capita, population (overall and breakdown by age), and consumer price index. It also covers a comparative analysis of political, economic, socio-demographic, and technological indicators (PEST) across 50 countries.