Instead of Instant, 'Home Cafe'... Capsule Coffee Grows 20% Annually on Average

Ediya Coffee Capsule Coffee 3 Types.

[Asia Economy Reporter Moon Hyewon] The capsule coffee market is growing by more than 20% annually amid the home cafe craze.

According to market research firm Euromonitor on the 7th, the domestic capsule coffee market size reached 198 billion KRW last year, a 42.7% increase from 138.7 billion KRW in 2019 before the COVID-19 pandemic. The average annual growth rate is 20%. This year, it is expected to exceed 200 billion KRW. The supply of capsule coffee machines has also steadily increased from 225,400 units in 2014 to an estimated 506,700 units this year. According to Shinsegae Department Store, sales of small home appliances such as coffee machines rose by 12.5% in the first half of this year.

As the market expands, major coffee franchises are also entering the capsule coffee market. Ediya Coffee announced that its cumulative capsule coffee sales reached 500,000 packs over the past year, equivalent to about 3 million cups. Paul Bassett launched three types of capsule coffee in August, and Starbucks introduced four types in September, targeting the home cafe market. Hollys Coffee also released two capsule coffee blends: Signature and Eclipse Blend. Jardin, which opened Korea’s first specialty coffee shop in 1998, entered the home cafe market by launching the capsule coffee ‘REVE.’ It is characterized by using aluminum capsule material to enhance flavor.