Coffee Bean Imports Reach $1.3 Billion by Q3
International Coffee Bean Prices Soar, Surpassing Last Year's Import Value
Coffee Bean Prices Up 50% Year-on-Year as of the 20th
Potential for Widespread Coffee Price Hikes by Year-End
This year, South Korea's coffee bean import value is expected to exceed 2 trillion won for the first time ever. While the import volume has not increased significantly, a sharp rise in international coffee bean prices has driven up the total import value. As coffee bean prices continue to climb, there is a growing likelihood that domestic coffee prices will also rise.
According to export-import trade statistics from the Korea Customs Service as of October 22, the value of coffee bean imports in South Korea reached $1.32783 billion (approximately 1.9 trillion won) in the first three quarters of this year, marking a 46.4% increase compared to the same period last year ($906.81 million). With one quarter left in the year, the import value has already surpassed last year's total of $1.24304 billion (about 1.77 trillion won), and if imports continue at the current pace, the annual total is expected to far exceed 2 trillion won.
As domestic coffee demand rises each year, the demand for coffee beans continues to grow steadily. However, the main reason for this year's particularly steep increase in import value is the surge in international coffee bean prices. As of the previous day, the price of Arabica beans on the New York Board of Trade (NYBOT) closed at $8,951.78 per ton, up 10.53% from the previous month and 24.23% from the beginning of the year.
With coffee bean prices continuing to rise this year, the average price per ton this month reached $8,537.97, which is more than 50% higher than the $5,571.47 recorded during the same period last year. In fact, the import volume for the first three quarters of this year was 158,777 tons, a modest increase of 2.8% compared to 154,457 tons in the same period last year. However, due to the sharp increase in bean prices, the import value has nearly risen by 50%.
The soaring coffee bean prices are the result of multiple overlapping factors. The most frequently cited is climate change. Brazil, the world's largest coffee producer, has recently experienced severe drought and abnormal heat, leading to reduced harvests, while Vietnam has also faced production disruptions due to abnormal weather. Climate change has had a sensitive impact on coffee growth, resulting in lower quality and increased uncertainty in harvest yields.
While supply faces disruptions, demand continues to rise, which is another reason for the price surge. Coffee consumption is increasing in Asian markets, including South Korea, and there is a shift in consumer preference from the relatively inexpensive Robusta beans to premium Arabica beans, further pressuring demand. Additionally, in South Korea, the strong US dollar and weak won have affected import costs.
The upward trend in coffee bean prices is the reason why major domestic coffee chains have raised their prices this year. Starbucks, Twosome Place, Hollys, Paul Bassett, Mega Coffee, Compose Coffee, and other leading franchises have increased prices, citing higher bean prices, labor costs, and operating expenses. Dongseo Food also raised the price of its instant coffee again in June, just six months after the previous increase.
These price hikes are translating into a greater burden for consumers. According to the National Data Office's recently released "September 2025 Consumer Price Trends," last month's consumer price index stood at 117.06, up 2.1% from the same month last year. While services and processed foods were the main drivers of overall inflation, coffee prices soared by 15.6% compared to the same period last year, significantly outpacing the overall inflation rate.
Industry sources predict that with overall prices on the rise, continued increases in coffee bean prices, and a combination of rising costs such as exchange rates and logistics, there may be another round of price hikes at the end of this year or early next year. Furthermore, according to the Food and Agriculture Organization (FAO) of the United Nations, it takes about 8 to 11 months for a shock in coffee bean prices to be reflected in consumer prices, and domestic coffee companies typically secure a 3- to 6-month supply of beans in advance, supporting the view that another price increase is not far off.
However, consumer groups argue that the cost of beans accounts for only a small portion of the price of a cup of coffee, and that it is unreasonable to raise menu prices solely due to higher bean costs. According to an estimate by the Korea Consumer Organization, the cost of beans used for a single shot of espresso (about 10g) is around 111 won. For Starbucks, the cost of beans for a tall Americano (2 shots, priced at 4,700 won) is 222 won, accounting for just 4.7% of the price per cup. For low-cost brands (Americano priced at 1,700 to 1,800 won), the bean cost is about 12.4% to 13.1% of the cup price.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
