As the government moves to tighten labeling standards for decaf beverages, the coffee industry is welcoming the change. Decaf beverages refer to products in which caffeine has been reduced below a certain level. Coffee franchise companies and makers of ready-to-drink (RTD) cup coffee and stick coffee say that, with demand for decaf expanding, stricter standards for what had been somewhat ambiguous labels could reduce consumer confusion.
According to the industry on the 18th, the Ministry of Food and Drug Safety will revise decaf labeling standards by March next year. The ministry plans to clarify the current standard of "removing 90% or more of caffeine" to "residual caffeine of 0.1% or less." The aim is to align with internationally accepted standards (99% in the European Union, 97% in the United States). The industry says the regulation may be an immediate burden for sellers, but in the long run it will help grow the decaf market by boosting consumer trust. A coffee industry official said, "Demand for decaf beverages has been rising recently, but the standard for how much caffeine remains was unclear," and added, "If labeling standards are revised and trust increases, consumers will have more choices and demand will grow further."
Sales of decaf beverages are steadily increasing. Starbucks Korea said decaf coffee sales totaled 36.5 million cups from January to October this year, up 35% from a year earlier. It has already surpassed last year's full-year sales of 32.7 million cups. Sales rose from 20.2 million cups in 2022 and 21 million cups in 2023 to 32.7 million cups in 2024. For Americanos, the top seller, 1 out of 8 cups was decaf. Twosome Place also said its decaf coffee sales this year increased 32% from a year earlier.
Sales of decaf cup coffee and stick coffee have also increased. Maeil Dairies said Barista Rules Decaf Espresso Latte saw its average monthly sales rise 84% after a recent relaunch. Dongsuh Foods said it is on track to surpass 40 billion won in decaf sales this year. In 2022 and 2023, the figure was around 30 billion won. Within sales of its flagship brand Kanu, the share of decaf rose from 6.8% last year to 8% this year. Dongsuh Foods is currently selling decaf products across all stick coffee and capsule coffee items it offers.
Decaf coffee had been criticized for its distinctive taste. However, recent technological advances have led to assessments that the taste gap compared with coffee made from regular beans has narrowed. Ediya Coffee introduced decaf beans at stores nationwide in January 2023. It made decaf available for all coffee items, from espresso-based menus to cold brew. An Ediya Coffee official said, "The biggest drawback cited for decaf coffee is the taste. We are working to minimize the difference from regular coffee to sell it," and added, "We will continue to develop products tailored to health-focused consumption."
Twosome Place has been steadily expanding its lineup, launching decaf cold brew and decaf Oatly cold brew in Aug. last year, and decaf cold brew latte and decaf cold brew cream latte in Aug. this year. A Twosome Place official said, "We plan to expand the lineup in line with the preference for decaf." A Starbucks official said, "As decaf has grown more popular recently, we have been steadily releasing caffeine-free beverages," adding, "This spring, we also rolled out promotional drinks such as 'Yuja & Orange Energy Fizzio' and 'Cherry & Plum Energy Fizzio.'"
However, the higher price compared with regular coffee remains a challenge. Because decaf undergoes an additional caffeine-removal process compared with regular beans, costs are higher. For example, at Starbucks, a decaf Americano is 6.4% more expensive than a regular Americano, and at Twosome Place it is 10.6% more expensive. With the recent rise in the won-dollar exchange rate, some expect price hikes will be unavoidable. When the exchange rate rises, the value of the won falls, making it more expensive to import beans.