SEOUL – Starbucks has hit the remarkable milestone of 2,000 locations in South Korea as of the end of 2024, cementing its position as the coffee chain’s third-largest market after the United States and China. This expansion is particularly notable, as it means South Korea has outpaced Japan, which has 1,901 stores, even though Japan's population exceeds 120 million—more than twice the size of South Korea’s 52 million residents.
According to Starbucks’ global website, by the close of the year, the total number of stores reached 2,009, marking South Korea as one of the key players within Starbucks' expansive global footprint of approximately 36,121 stores. The U.S. boasts the highest number with 17,049 stores, representing 47% of the total, followed by China with 7,685 stores, 21% of the overall total. When examining per capita store count, South Korea stands out as having more Starbucks locations compared to both the U.S. and China.
The growth of Starbucks outlets in South Korea has been impressive. By the end of 2023, South Korea had recorded 1,893 Starbucks locations. Japan, on the other hand, added 90 new outlets, prompting Starbucks Korea to surpass it after they opened 116 new stores over the year. It’s worth noting, Japan was the first country outside North America to host Starbucks, beginning its expansion with the inaugural store opening in Tokyo’s Ginza district back in 1996. South Korea followed, opening the first location near Ewha Womans University three years later, back in 1999.
The company’s growth is defined by numbers: reaching 1,000 stores by 2016, the brand has since added another 1,000 locations in just eight years. Since 2020, the pace has accelerated, with 500 new stores introduced over the past four years alone — that's roughly one new store every three days! The concentration of stores is particularly prominent in Seoul, which has over 600 Starbucks locations, accounting for more than 30% of all stores nationwide. Meanwhile, hotspots like Gangnam District, known for its high-density office buildings along Teheran-ro, house close to 100 Starbucks outlets.
A Starbucks Korea official commented on this expansion, stating, "We are continuously introducing unique, differentiated stores..." This approach has not only been about opening new locations; it reflects Starbucks’ strategic efforts to resonate with local customers by providing differentiated experiences. Despite the rapid expansion, Starbucks Korea—67.5% owned by Shinsegae’s Emart—saw its operating profit margin drop from 10% in 2021 to only 4.8% by 2023. It's indicative of the competitive and challenging market conditions present in South Korea.
The coffee culture within South Korea is thriving; the total number of coffee shops exceeded 100,000 as of 2022. According to market research firm Euromonitor, South Korea’s per capita annual coffee consumption reached 405 cups in 2023, which is approximately 2.7 times the global average of 152 cups. This trend showcases the continuing demand for coffee and hints at the sustainability of Starbucks’ expansion efforts within the region.
With its unique regional focus and customer-tailored store concepts, Starbucks continues to redefine its space within the competitive South Korean market, demonstrating both resilience and innovation. The growth path of Starbucks Korea not only signifies its business achievements but reflects broader trends and shifts within the coffee consumption patterns across the country.