Two new alternative coffee products under the "Chico" brand, now on sale at Lotte Mart and Lotte Super [Lotte Mart/Lotte Super]
Two new alternative coffee products under the "Chico" brand, now on sale at Lotte Mart and Lotte Super [Lotte Mart/Lotte Super]

South Korea's retail and food industry is moving into the alternative coffee market, driven by growing consumer interest in healthier food options and surging coffee bean prices.

Lotte Mart and Lotte Super began selling two varieties of an alternative coffee product called "Chico" online and in stores on July 1, according to industry sources Friday. The product is made from roasted chicory root and is designed to replicate the flavor of conventional coffee. Packaged in powder form, it can be prepared simply by adding water, producing drinks similar to an Americano or a latte.

Sales of alternative coffee and decaffeinated coffee at Lotte Mart rose 35.7 percent and 17.5 percent, respectively, in the first half of this year compared with the same period last year. "These products are aimed at pregnant women who cannot drink coffee and customers sensitive to caffeine," a Lotte Mart and Lotte Super official said, adding that the items are priced more affordably than regular coffee. The Americano-style variant — "Chico Mild Roast" (2g, 20 sachets) — costs 399 won per serving at the regular price.

Signaite, the corporate venture capital arm of Shinsegae Group, invested in Wake, a startup behind the alternative coffee brand SANS, at the pre-Series A stage last year. SANS sells alternative coffee blended from 12 ingredients, including jujube seeds, chicory root and barley. The brand has since opened a dedicated outlet at Sweet Park inside Shinsegae Department Store's Gangnam branch.

Maeil Dairies launched "Barista Rules Orzo Black" in May, a product made with barley, chicory, rye and malt. Ediya Coffee also introduced an "Orzo Blend Decaf Americano" in stick form, incorporating Italian barley.

Overseas markets have been paying attention to alternative coffee for some time. Atomo Coffee, launched in Seattle in 2019, is a leading example. The brand spread by word of mouth early on as the "Tesla of coffee" and has raised approximately $59 million in cumulative investment to date. Its products are sold at more than 70 locations of the US coffee franchise Bluestone Lane as well as in the United Kingdom and Japan. In Japan, Coca-Cola's local group company and Asahi Beverages are each expected to release alternative coffee products in the second half of this year.

The global alternative coffee market is projected to grow from $29.3 billion last year to approximately $49.8 billion by 2035, according to the International Coffee Organization. Climate change is cited as the primary growth driver, as key coffee-growing regions face expected declines in output due to its effects. The Intergovernmental Panel on Climate Change warned in one report that the area suitable for growing coffee beans could shrink to half its current size by 2050.

Coffee prices are already under pressure. Arabica coffee beans traded Monday hit $8,023.64 per ton — the highest level since Nov. 11, 2025, when they reached $9,318.84.

Ingredients used by US alternative coffee brand Atomo [Atomo website]
Ingredients used by US alternative coffee brand Atomo [Atomo website]

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