Coffee imports see decrease, decline expected to continue

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Coffee imports see decrease, decline expected to continue

Published: 21 Aug. 2023, 16:32 Updated: 21 Aug. 2023, 19:05

SEO JI-EUN
seo.jieun1@joongang.co.kr

An office worker goes to work with a cup of coffee in hand in Seoul. [NEWS1]

Korea, often referred to as "The Republic of Coffee" because of the widespread popularity of coffee shops throughout the country, is expected to record a decrease in coffee imports for the first time in five years after a global slump in coffee production.

Coffee imports from January to July contracted by 3.9 percent compared to the same period last year, according to data from the Korea Customs Service, with the total coffee import volume reaching 109,752 tons. The import value also saw a decline of 9.5 percent, totaling $646.73 million. The import figures encompass a wide range of coffee substitutes, regardless of whether they have undergone processes like roasting or decaffeination.

Should the trend continue, it would mark the first annual decrease in coffee imports in five years since 2018.

The trend of increasing coffee imports has been a continuous theme within Korean coffee culture. The coffee import volume has gradually climbed from 158,000 tons in 2018 to over 200,000 tons last year. The country's affinity for coffee has been evident in its landscape, boasting more than 100,000 coffee shops in an area only slightly smaller than the state of Kentucky.

The reduction in coffee imports is attributed, in part, to the global dip in coffee production.

Key coffee-exporting nations such as Brazil and Indonesia have faced diminished coffee harvests because of unfavorable weather patterns. The persistent drought brought on by the El Niño has led Indonesia, the world's third-largest robusta coffee producer, to anticipate a 20 percent reduction in coffee production for 2024, as predicted by the U.S. Department of Agriculture.

Additionally, the surge in coffee imports observed in the previous year has played a role in the present decrease.

Last year, coffee import volumes leaped by 8.2 percent in comparison to the previous year, marking the highest jump in six years since 2016. The import value also surged by 42.4 percent, signifying the largest increase in 11 years since 2011.

Examining coffee imports on a country-by-country basis for the January-to-July period this year, Colombia's imports contracted by 7.9 percent, totaling 15,353 tons, compared to the prior year. Ethiopia faced a decline of 17.8 percent, with imports summing up to 7,888 tons. Conversely, Brazil's imports registered an increase of 16.5 percent, reaching 29,505 tons, while Vietnam's imports surged by 22.2 percent, amounting to 24,627 tons.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]