Credit: Public domain.
The explosive growth of South Korea’s coffee scene may be hitting a wall. According to the data by the Ministry of Interior and Safety 행정안전부, in 2024, the net number of cafes in South Korea (openings minus closings) declined by 1,526 - the first decline in the coffee shop industry since the ministry began tabulating the statistics in 1964.
South Korea is one of the most active coffee markets in the world; the country has the second most Starbucks outposts in the world (1,750 stores) as of 2022, behind only the United States (6,608) and more than double of the third place United Kingdom (838). (See previous coverage, “Coffee Business in Korea.”) But with the cost of coffee beans tripling in the past five years, cafes in Korea suffered a 9.5% decline in Q4 2024, a steeper drop than other retail food industries such as fast food restaurants (1.8% decline.)
