Competition Heats Up for the Leading Position in the Large Liquid Coffee Market

No.1 Lotte Chilsung 'Cantata'... Growth Slows to 1.7% Last Year
Dongseo Food 'TOP' and Maeil Dairy 'Barista Rules' Launch Pursuit
Industry Introduces Successive No-Label and Low-Sugar Products

[Asia Economy Reporter Koo Eun-mo] As the popularity of liquid coffee, which allows consumers to enjoy high-quality coffee at a relatively affordable price, rises, products reflecting trends such as no-label and low-sugar are being released one after another, intensifying competition in the domestic liquid coffee market.

According to market research firm Nielsen Korea on the 11th, Lotte Chilsung Beverage's 'Cantata' maintained its leading position in the domestic liquid coffee market by selling 228.8 billion KRW worth last year. Cantata has recorded sales of over 200 billion KRW every year since 2019. However, while its growth rate slowed to 1.7% last year, the pursuit by competing products appears to be intensifying.

Dongseo Food's 'Maxim TOP' joined the '200 billion club' with sales of 204.6 billion KRW, a 4.2% increase from the previous year, closely following Cantata. Meanwhile, Maeil Dairies' 'Barista Rules' also formed a three-way competition with sales of 193.3 billion KRW, up 4.4% from the previous year. The market shares of the three brands are 15.9%, 13.6%, and 12.9%, respectively, with a combined share of 42.4%.

The domestic liquid coffee market has steadily expanded over the past few years. The market, which was around 1.2141 trillion KRW in 2017, grew to 1.4455 trillion KRW last year, recording a growth rate of 19.1% over four years. Liquid coffee, made by mixing coffee with dairy products and packaged in cups or cans, is expanding its share in the coffee market every year by emphasizing cost-effectiveness based on consumers' daily coffee consumption habits. An industry insider explained, "Since it is price-competitive compared to coffee specialty shops, price-sensitive consumers prefer it," adding, "The advantage of being conveniently available at nearby convenience stores is also increasing the number of consumers seeking it."

As the market is expected to continue its growth trend, industry movements to expand market share are accelerating. In April, Lotte Chilsung introduced the 'Cantata Contrabass Eco' product, which removed the plastic label and embossed the brand name and emblem.

Dongseo Food also launched a new product last month to target the market. The new product, 'Maxim TOP Medium Roast Low Sugar Black,' contains 50% less sugar compared to the existing Sweet Americano, responding to the recent increased interest in health-conscious products such as sugar-free or low-calorie options. Maeil Dairies, after releasing the low-sugar 'Barista Rules Grande Sweet Americano' in April, introduced a no-label product in June, intensifying its pursuit of the leading competitors.

As market competition heats up, manufacturers are continuously launching new products emphasizing differentiated flavors. Coca-Cola introduced 'Georgia Latte Nista,' highlighting a creamy texture, and Seoul Milk collaborated with master barista Park Yi-chu to release 'Gangneung Coffee Nutty Cream Latte,' emphasizing nutty flavors.