South Korea Tea Market Overview: Size, Share, Analysis & Forecast

Overview – South Korea Tea Market

The South Korea tea market is characterized by a blend of traditional and modern consumption patterns. Tea consumption in South Korea has expanded beyond cultural rituals to become part of everyday lifestyle and wellness habits, with green tea remaining the most widely consumed variety. Growth is supported by rising health consciousness, increasing demand for natural and functional beverages, and expanding availability across retail and online channels. Urbanization and evolving consumer preferences have led to diversification in tea types and formats, including specialty blends, herbal infusions, and ready‑to‑drink options. (turn0search0

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Market Growth

The South Korea tea market is experiencing steady growth driven by increasing health consciousness, rising demand for natural and functional beverages, and expanding adoption of ready‑to‑drink and specialty teas. The market was valued at approximately to reach USD 730.0 Million by 2033, exhibiting a growth rate (CAGR) of 4.1% during 2025-2033. Growth is fueled by urbanization, rising disposable incomes, evolving consumer preferences toward premium and herbal teas, and the expansion of both retail and online distribution channels. Younger consumers and wellness-focused buyers are key contributors, creating opportunities for product innovation, sustainable offerings, and convenience-oriented formats.

Key Trends

Health & Wellness Focus

Consumers increasingly select teas for their perceived health benefits — particularly antioxidants, digestive support, and natural properties — which has elevated interest in green, herbal, and functional teas.

Diversification of Tea Types

While green tea continues to dominate, other varieties like black tea, oolong, fruit‑infused, and herbal blends are gaining traction, especially among younger and urban populations seeking flavor variety and functional benefits.

Ready‑to‑Drink (RTD) & Convenience Formats

Busy lifestyles are increasing demand for RTD bottled teas and single‑serve tea products, making tea more accessible as an everyday beverage choice.

Premiumization & Specialty Blends

Premium teas — including organic, artisanal, and origin‑specific blends — are attracting consumers willing to pay higher prices for quality, sustainability, and unique experiences.

Retail & Café Culture Expansion

Tea consumption is supported by speciality tea shops, lifestyle cafés, and international chains entering the market (e.g., Heytea opening in Seoul), enhancing visibility and consumer engagement.

Market Segmentation

The South Korea tea market can be segmented by product type, packaging, and distribution channels:

By Product Type

Green Tea – Dominant due to cultural roots and health appeal.

Black Tea – Growing as urban consumers explore diverse flavors.

Fruit & Herbal Tea – Rapidly increasing owing to wellness trends.

Oolong & Specialty Teas – Attracting niche and premium demand.

(Segmentation is detailed in thematic reports and reflects consumer preference diversification and product innovation.)

By Packaging

Tea Bags – Convenient and popular.

Loose Leaf Tea – Preferred for premium and artisanal offerings.

Bottled/RTD Tea – Driven by on‑the‑go consumption.

(Shifts toward convenience and premium packaging support different market segments.)

By Distribution Channel

Supermarkets & Hypermarkets – Mass market reach.

Convenience Stores – Impulse/bottled tea sales.

Specialty Tea Shops & Cafés – Premium and experiential segments.

Online/E‑Commerce Platforms – Fast‑growing channel, especially among younger consumers.

(Across channels, the mix reflects both traditional retail strength and digital growth.)

Recent Developments

New Market Entrants & Store Openings

International tea brands are entering the South Korea market — for instance, Heytea opened its first Seoul store, catering to demand for high‑quality, health‑oriented beverages.

Sustainability & Product Innovation

Manufacturers increasingly focus on sustainably sourced tea leaves, recycled packaging, and environmentally friendly production to appeal to eco‑conscious consumers.

Expanded Premium & Functional Offerings

Demand for fruit‑infused, botanical, detox, and specialty tea blends is growing, reflecting consumer interest in unique flavors and wellness benefits.

Retail Channel Growth

Online stores and specialty tea cafés are broadening market access, especially for premium and convenience products among younger demographics.

FAQs

Q: Why is green tea dominant in South Korea?

A: Green tea has a long cultural history in South Korea and is widely consumed for its perceived health benefits, such as antioxidants and wellness support.

Q: Are ready‑to‑drink tea products growing?

A: Yes. Busy lifestyles and convenience‑driven consumption are boosting demand for RTD and single‑serve teas.

Q: What types of teas are gaining popularity?

A: Beyond green tea, herbal, fruit‑infused, specialty, and premium blends are increasingly chosen for flavor variety and functional benefits.

Q: How is sustainability influencing the market?

A: Sustainability is shaping sourcing, packaging, and marketing, with consumers showing preference for responsibly produced and eco‑friendly teas.

Q: Is premiumization significant?

A: Yes. Consumers are willing to spend more on premium, artisanal, and specialty teas, enabling higher‑value product development.