Decaf coffee surges in Korea amid wellness trend

Yonhap News

South Korea’s decaffeinated coffee market is expanding rapidly as more consumers moderate their caffeine intake for wellness and improved sleep. Once a niche product, decaf coffee has become one of the fastest-growing categories across cafés, instant coffee mixes, and ready-to-drink products, with double-digit sales growth reported by major chains and manufacturers this year.

According to industry sources Monday, leading coffee franchises such as Starbucks Korea and Twosome Place have seen decaf coffee sales jump by more than 30 percent from a year earlier, while DongSuh Foods, which commands roughly 90 percent of the nation’s instant stick coffee market, expects its decaf coffee sales to surpass 40 billion won ($28 million) for the first time this year.

DongSuh reported cumulative decaf coffee sales of 29.2 billion won as of September, up 19.5 percent year-on-year. Based on the current pace, the company projects its full-year total to exceed 40 billion won, marking its steepest growth since the launch of its flagship decaf lines, including the Maxim coffee mix and Kanu instant coffee brand.

According to market tracker NielsenIQ Korea, decaf products accounted for 8 percent of Kanu’s total sales this year, up from 6.8 percent last year.

A company spokesperson said demand for decaf products “continues to outpace production,” adding, “as daily coffee consumption rises, more consumers choose decaf to manage caffeine intake and sleep better.”

Demand is equally strong at coffee chains. Starbucks Korea sold 21.5 million cups of decaf coffee in the first half of 2025, up 34 percent year-on-year. “As the number of customers drinking more than one cup of coffee a day increases, awareness and preference for decaf are also rising,” a Starbucks official said.

Twosome Place reported a 32 percent increase in decaf coffee sales during the same period, while budget chain Mega MGC Coffee saw its decaf sales soar 70 percent, reaching 7.5 million cups in the first half alone.

Government data also reflects the boom. According to the Korea Agro-Fisheries & Food Trade Corporation (aT), the value of decaf green coffee bean imports reached $93.1 million as of September, up 73.4 percent from a year ago. Despite higher coffee bean prices due to abnormal weather, import volume also climbed 47.2 percent, confirming genuine demand growth rather than price inflation.

To capture the surging market, brands are expanding product lines and promotions. Starbucks now includes decaf beverages in its “second-cup 60% discount” program, while Twosome Place has diversified its decaf cold brew range, launching Decaf Cold Brew Latte and Decaf Cold Brew Cream Latte in August.

Analysts attribute the trend to Korea’s soaring coffee consumption — averaging 416 cups per person annually, one of the world’s highest — and the growing wellness culture emphasizing sleep quality and balanced lifestyles.