| South Korea

Iced beverages account for three quarters of Starbucks orders in South Korea

Starbucks Korea says iced beverage sales are being driven by millennial and Generation Z consumers, with iced tea a main driver of category growth 

Iced beverages continued to account for approximately 60% of beverages sold during the winter months | Photo credit: Starbucks


 

Starbucks Korea has highlighted the increasing popularity of iced beverages across its 1,600 stores in the country, with iced tea now driving demand all year round. 
 

Data shared by Starbucks Korea shows that iced beverages accounted for 76% of beverage sales in the last 12 months, exceeding the segment’s 64% share in 2021. 


Highlighting their growing appeal, the data indicates that iced beverages continued to account for approximately 60% of beverages sold during the winter months between November 2021 and February 2022. 


Starbucks Korea CEO Son Jung-hyun Son said the growing popularity of iced tea had boosted the iced beverage category overall.  
 

A 'new powerhouse of iced beverages’ has proved particularly popular with the millennial and Generation Z (MZ) demographics in the last year, he added.  


These include Starbucks’ Ice Yuzu Mint Tea, Ice Grapefruit Honey Black Tea and Ice Aurora Chamomile Relaxer products, alongside an Ice Citron Mint Tea, which achieved 66% annual sales growth compared to the same period last year. 


Additionally, Starbucks has sold 10 million cups of its Aurora Chamomile Relaxer since launching the product in 2020. The iced beverage currently has the highest purchase rate among Starbucks Rewards members aged between 20-30. 


In addition to tea beverages, Vanilla Cream Cold Brew also recorded sales growth of over 40% this year. 


“Among the MZ generation, there is a growing craving for iced drinks, especially our tea drinks that are both healthy and tasty. We will continue to develop iced drinks to cater to customer demand even in winter,” said Lee Jeong-hwa, Beverage Team Manager, Starbucks Korea. 


In August 2021, Seattle-based Starbucks revealed spring and summer cold beverage sales significantly outpaced hot drinks across its US stores, accounting for 74% of total beverage sales in its fiscal third quarter ended 27 June 2021.  


In the UK, 58% of consumers surveyed in Cakes, Shakes & Tea Breaks UK 2022 had ordered an iced beverage from Starbucks in the last 12 months. 


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