The move to cut caffeine intake is reshaping the coffee market. Demand is rising not only for "decaffeinated," which lowers caffeine content to 10% or less, but also for "non-caffeine" coffee that excludes caffeine altogether, accelerating growth in the "alternative coffee" market that recreates coffee flavors with plant-based ingredients such as barley and chicory. The industry sees this as the extension of trends that value Healthy pleasure (health management that is enjoyable) and wellness (quality of life) into the coffee market and is rolling out related products.
According to related industry officials on the 4th, the trend is shifting beyond merely reducing caffeine content to consuming beverages with no caffeine at all. Because decaffeinated coffee removes caffeine from coffee beans during processing, it means a small amount of caffeine remains in the beverage. By contrast, alternative coffee uses inherently caffeine-free ingredients such as barley or chicory roots to reproduce only the unique flavor of coffee. A coffee industry official said, "As more consumers manage caffeine intake due to reasons such as sleep quality, stomach discomfort, and palpitations, interest in the non-caffeine alternative coffee market is growing."
According to Fortune Business Insights, the global alternative coffee beverage market was worth $2.41 billion (about 3.49 trillion won) last year. The alternative coffee market is expected to grow at an average annual rate of 6.98% to reach $4.41 billion (about 6.4 trillion won) in 2034. That contrasts with the slower growth of the traditional coffee market as it enters a mature phase.
This also aligns with the Healthy pleasure and wellness trends running through the broader food and beverage (F&B) market. The prevailing view in the industry is that a consumer tendency to cut stimulating elements such as sugar, alcohol, and caffeine while not giving up taste and enjoyment has extended into the coffee market.
In particular, in the traditional coffee market, the ability to target time slots with relatively low consumption as a niche is seen as attractive. Coffee consumption, centered on caffeine's arousal effect, is concentrated mainly in morning work hours. People tend to avoid drinking coffee on an empty stomach in the morning or after evening due to concerns about stomach burden or sleep disruption. A food industry official said, "Non-caffeine alternative coffee is perfect for targeting time periods when traditional coffee consumption is absent or declining," adding, "Because it sits in a consumption area that does not overlap with the existing coffee market, it is also attractive as a strategic option to expand the overall coffee market."
Korea's alternative coffee market is currently forming around ingredients that are completely caffeine-free. Tea brand TEAZEN released a non-caffeine alternative coffee, "TEAZEN Caffè Orzo," at the end of last month using 100% barley. Orzo, which means barley in Italian, has long been consumed in Europe as a coffee substitute beverage. Orzo coffee, made by grinding and extracting roasted barley, recreates the distinctive flavor and savory notes of coffee.
Binggrae entered the alternative coffee market last September by launching "Chicory Brew Black," a ready-to-drink (RTD) liquid beverage made with chicory. It delivers a taste similar to an Americano, with chicory's subtle sweetness and bitter notes. According to Binggrae, more than 50,000 units were sold in the first month of launch. In addition, global food company Nestlé sells non-caffeine coffee substitute drinks "Caro" and "Pero," which use barley, malt, rye, and chicory.
The industry does not view alternative coffee as a market that directly replaces existing coffee. Rather, it analyzes that it absorbs time slots and situations in which coffee consumption was absent or reduced. A beverage industry official said, "In the past, the question was whether to drink coffee or not, but now the key standard is 'when and how much can you drink coffee without burden,'" adding, "As long as the Healthy pleasure and wellness trends continue, demand for non-caffeine alternative coffee is highly likely to expand gradually."
Ajou University business professor Lee Jong-u said, "Non-caffeine is not just a passing trend but the result of accumulated changes in consumer standards to manage caffeine intake, effectively playing a role in expanding the scope of the traditional coffee market."