"Morning and Lunchtime Coffee at Risk"... Coffee Bean Imports Surpass 2 Trillion Won for the First Time Amid High Exchange Rates

The Reason Behind Rising Coffee Prices Is Not Just Consumption

This year, for the first time ever, the value of imported coffee beans in Korea has surpassed 2 trillion won.

While steady growth in coffee consumption has had an impact,

the simultaneous rise in international coffee bean prices and exchange rate pressures

has fundamentally changed the cost structure of the domestic coffee market, according to analysts.

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① Import Value Soars... But Volume Remains Almost Unchanged

According to the Korea Customs Service, as of November this year, the value of imported coffee beans stood at approximately 1.58 billion dollars,

an increase of more than 38% compared to the same period last year.

In contrast, the import volume during the same period was about 187,000 tons,

which showed little change from last year.

In other words, it is not that more coffee was imported,

but rather, the same amount of beans was imported at a higher price.

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② Climate Change Has Driven Up Bean Prices

SORA generated image.

The starting point for the rise in bean prices is climate risk.

Brazil, the largest producer of Arabica beans,

has faced repeated cycles of drought, extreme heat, and heavy rain, increasing uncertainty in crop yields,

while major producers in Central and South America have also been confronted with plant diseases and rising production costs.

Vietnam, the largest producer of Robusta beans, has also been affected by climate change,

and, in addition, faces higher labor and logistics costs,

leading to a significant reduction in its supply capacity compared to previous years.

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③ 'Double Cost Pressure' from Exchange Rates

Most coffee beans are traded in US dollars.

With the won-dollar exchange rate remaining high throughout this year,

the cost in won has increased significantly even when importing the same volume.

The simultaneous rise in international coffee bean prices and exchange rate pressures

is creating what is described as a 'double cost pressure' across the entire coffee industry.

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④ The Cost Increase Is Structurally Hard to Stop

An iced Americano ordered as soon as I arrived at work is waiting for its owner. Photo by Dongju Yoon

It is now considered that the burden of bean prices and exchange rates has exceeded what can be temporarily absorbed and managed.

Because coffee demand remains relatively stable,

and international coffee bean trading is centered on the US dollar,

rising external costs inevitably end up being reflected in prices.

Industry experts believe that as long as both bean prices and exchange rates remain high,

the upward pressure on coffee prices will be difficult to resolve.

Coffee prices are now a structural issue.
International coffee bean prices and exchange rate fluctuations overlap,

The rise in coffee prices is regarded not as a temporary phenomenon
but as a medium- to long-term change in the cost structure.

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