Retro trend brings back popularity of instant coffee in Korea

View of the Maxim Plant in Yongsan-gu, Seoul. [Courtesy of Dongsuh Foods]

The resurgence of instant coffee is being driven by the ongoing retro trend among young South Koreans in their 20s and 30s.

The biggest beneficiary of this trend is Dongsuh Foods, the leader in the local instant coffee market.

According to the company on Sunday, the sales proportion of instant coffee menus at its Maxim Plant has been steadily increasing.

Maxim Plant, a brand experience space that opened in Hannam-dong, Yongsan District in central Seoul, in April 2018, has attracted 1.12 million visitors over the past six years.

It has become a hot place on social media, with visitors in their 20s and 30s accounting for 73 percent of the entire visitors in June.

Unique instant coffee-based menus like the Supreme Gold Cream Latte have gained popularity, with their share of total sales growing 1.6 times over the past two years to reach 7.6 percent last year.

“In any coffee shop, Americano and cafe latte account for more than half of the sales, but instant coffee menus have grown to rank third at Maxim Plant and other brands,” said a company spokesperson.

Mega MGC Coffee, the leading budget coffee brand, launched Halmega Coffee, an instant coffee menu, in September last year.

It quickly gained popularity, selling 2.7 million cups in just two months.

Paik’s Coffee, another budget coffee brand, has been selling its instant coffee menu, Original Coffee, since 2007, consistently accounting for more than 10 percent of total sales.

With mix coffee captivating the taste buds of young consumers, young coffee brands are also launching new menus.

Kim Bong-jin, former chairman of Woowa Brothers, the operator of food delivery app Baemin, established Grande Clip Korea in September last year and chose mix coffee as his first project, launching the brand New Mix Coffee.

The first store opened in Seongsu-dong in March.