If you’re a fan of Korean dramas, you’ve probably noticed that unless it’s a historical drama, there’s almost always a coffee-drinking scene. Koreans are famous for their love of coffee—there are even more coffee shops than convenience stores. According to research, the average Korean drinks 353 cups of coffee per year, far above the global average of 130 cups, and Korea has the world’s highest density of coffee shops. By 2023, the Korean coffee market was expected to reach 8.6 trillion won.
In fact, Korea is not a coffee-producing country and does not have a long coffee history. Compared to Japan, where coffee was introduced as early as the 17th century, Korea only began using the word “coffee” in the 19th century. The booming Korean coffee culture is actually just about a hundred years old.
Koreans drink a lot of coffee not simply out of preference, but because cafés have become one of the most popular social spaces. In Korean corporate culture, grabbing a coffee after company dinners is almost a ritual. Meals are usually quick and quiet—except for drinking sessions—and people rarely talk business at the table. Instead, after eating, they often say: “Since we’ve finished eating, let’s grab a coffee and talk.” Coffee shops provide that environment, fueling a trillion-won coffee economy.
Although Starbucks dominates the market, competition among brands is fierce. Yet in this saturated landscape, a humble local brand rose to the top, becoming Korea’s No. 1 coffee chain: Ediya Coffee.
From Grassroots to National Brand
Founded in 2001, Ediya Coffee now has over 3,000 outlets nationwide. In the past decade, its store count quadrupled, from 800 to 3,300—nearly 2,000 more than Starbucks. Sales also soared from 42 billion won to 243.4 billion won. In 2020, Ediya invested 40 billion won in its own production base, taking full control of instant coffee, capsule coffee, and beans for franchise stores.
In December last year, Ediya Coffee jumped on the metaverse trend, partnering with virtual social platform ZEPETO to open a “Four Seasons Coffee” themed virtual store. Within two days, the space attracted over 1 million visits; within a week, over 3 million, ranking first worldwide in ZEPETO’s world map traffic.
But Ediya’s journey was far from easy. In its early years, the brand was even labeled as “cheap coffee.”
The Early Price War
The turning point for Korea’s coffee boom came in 1999, when Starbucks opened its first store near Ewha Womans University. Starbucks offered a whole new experience, making take-out coffee a daily routine and turning cafés into places for work, study, and socializing.
At that time, Korea’s GDP per capita was nearing USD 20,000, and Starbucks positioned itself as premium. Carrying a Starbucks cup became a symbol of sophistication and middle-class taste. It redefined dining culture in Korea, breaking the old belief that eating or drinking on the go was inappropriate. Starbucks’ success inspired both local brands and international chains such as Coffee Bean & Tea Leaf and Hollys Coffee to enter the Korean market.
Ediya Coffee, sensing the opportunity, chose a different strategy. Instead of competing as a premium brand, it targeted the low-end market with coffee priced at just 2,000 won (around 10 RMB / 10,000 VND), cheaper than Starbucks by about 1,000 won. This “affordable coffee” approach quickly won over customers and boosted its influence.
However, with the rise of ultra-low-cost brands like The Venti and convenience-store coffee, Ediya could no longer rely solely on price competitiveness. To break away from its “cheap coffee” image, it decided to reposition itself with a focus on quality.
Taking Control of the Supply Chain
Ediya Coffee established its own research center and developed the proprietary “Ediya Blend”—a technique combining beans from Colombia, Guatemala, Ethiopia, Brazil, Kenya, and more, enhancing flavor profiles. The pivotal move was building its Dream Factory roasting plant, a 13,064 m² facility equipped with world-class machinery from Switzerland and Germany. Freshly roasted beans could be delivered directly to franchise outlets.
By automating the entire process—from sourcing green beans to sorting, roasting, and packaging—Ediya achieved strong supply chain control, reduced costs, and minimized inventory risk. Compared to Starbucks, which typically takes at least a month to deliver roasted beans globally, Ediya had a clear advantage in freshness and consistency.
Tapping Into Lower-Tier Markets
In 2012, Ediya Coffee launched Beanist, its instant coffee brand, offering various flavors such as Americano and Latte, sold in supermarkets and franchise stores.
While Starbucks and other premium brands focused on café experiences and immersive space marketing, Ediya stuck to its “small-store, low-cost” expansion model. This allowed rapid growth, especially in rural areas where rent is 70–80% cheaper than in major cities. Leveraging its brand recognition and cost efficiency, Ediya expanded nationwide, surpassing 3,000 stores to become Korea’s true national coffee brand.
The Overseas Dream
Like many successful businesses, Ediya Coffee has global ambitions. As early as 2005, it opened its first overseas store in Beijing, China, but closed in 2008 due to poor performance.
As domestic growth slowed, Ediya shifted focus to international expansion. Its Beanist brand spearheaded exports, starting with instant coffee shipments to the U.S. in 2022, followed by entry into Australia, New Zealand, Mongolia, and Taiwan. Early this year, Ediya re-entered Mainland China via e-commerce, launching on Tmall with instant and capsule coffee products.
In August, Ediya announced it would open a store in Guam (USA)—its first overseas shop outside of China. With 1.5 million annual visitors, half of whom are Korean, Guam offers Ediya a familiar consumer base to build brand recognition and establish a foothold in the U.S. offline market.
