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    Famous foreign coffee brands take on crowded S. Korean market

    2024.10.28 11:01:43
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    Fuglen’s new branch in Sangsu, opened on the 24th. (Fuglen Instagram)
    Fuglen’s new branch in Sangsu, opened on the 24th. (Fuglen Instagram)

    Even as South Korea’s coffee market reaches saturation, foreign brands are stepping in with premium offerings, hoping to capture the attention of coffee lovers. However, some industry observers say these brands may struggle to carve out a lasting presence, suggesting their popularity could be temporary.

    On Sunday, Norway-based Fuglen opened its first South Korean store near Sangsu Station in Seoul’s Mapo district. Recognized as one of Northern Europe’s top three coffee brands, Fuglen has been a staple in Nordic coffee culture for over 60 years, known for its aromatic brews that highlight the natural flavors of coffee beans.

    Fuglen, which means “bird” in Norwegian, has previously only operated in Japan within Asia, making it a popular destination for South Korean travelers. Anticipation for its Seoul debut was high. According to Naver Data Lab, search interest in Fuglen surged after the opening announcement on July 3, with searches peaking on July 24—the store’s launch day—reaching an index of 100, a significant jump from just two days earlier. Customers eager to try Fuglen’s coffee firsthand reported waiting up to two hours, and Instagram posts tagged with Fuglen have already surpassed 16,000.

    Fuglen’s arrival comes on the heels of another foreign debut—last month, Ralph’s Coffee, a brand operated by American fashion label Ralph Lauren, opened in the upscale Garosu-gil area of Seoul. Since launching its flagship store in New York in 2014, Ralph’s Coffee has expanded to cities like London, Paris, Hong Kong, and Singapore.

    Ralph’s Coffee’s Seoul store features American-inspired decor, combining oak floors, brick walls, and wood panels with vintage brass and bronze details. The design evokes Ralph Lauren’s signature style while serving blends sourced from Central and South America. Customers can also enjoy desserts, including Ralph’s brownies, cakes, and cookies.

    South Korea has become a key battleground for foreign coffee brands. Last month, Lotte Department Store secured franchise and distribution rights for Morocco’s luxury Bacha Coffee and opened its first South Korean store. Known for its opulent design—inspired by medieval Marrakech—Bacha Coffee sells premium beans, priced up to 1.4 million won ($1,050) per 100 grams, earning it the moniker “the Hermès of coffee.”

    Canadian chain Tim Hortons has also been expanding aggressively since entering the South Korean market in December 2023. Known as Canada’s leading coffee brand, Tim Hortons operates over 4,300 locations in its home country.

    These newcomers follow the arrival of Blue Bottle, which has been dubbed “the Apple of coffee.” Blue Bottle opened its first South Korean store in Seoul’s Seongsu district in 2019. The brand’s minimalist product lineup mirrors the streamlined approach of Apple co-founder Steve Jobs. On opening day, more than 400 people lined up in the morning to enter the Seongsu store. Blue Bottle has since expanded to 15 locations across South Korea, including Samcheong and Yeoksam.

    As South Korea’s vibrant café culture continues to grow, it remains to be seen whether these foreign brands can secure a lasting foothold in the increasingly crowded market.

    By Byun Deok-ho and Minu Kim
    [ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
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