I. Market Overview
- The domestic cafe market size is estimated to be approximately 9.5 trillion won as of 2024 , and the number of franchise stores is saturated at approximately 85,000 (based on the Fair Trade Commission's first half of 2025) .
- However, the ' eco-friendly, vegan, and zero-waste cafe ' segment within the market is growing by more than 12% annually , and
ESG management and policy campaigns (regulation of plastic cups and disposable products, strengthening of recycling separation) are directly contributing to this growth. - Representative brands: Ediya and Paikdabang (ESG certification introduced) , Caffe Bene and Angel-in-us (upcycled stores) , Cheongchun Coffee (eco-friendly packaging) , and
local brands (Loop, Triple Planet Cafe, etc.) are leading new market trends.
II. Major Supply Chain Structure
division | Key items | characteristic |
|---|---|---|
| raw materials | Coffee beans, plant-based milk (oat, soy), vegan syrup, and zero-sugar ingredients | Expanding FairTrade and Vegan Certified Ingredients |
| facility | Eco-friendly espresso machines and energy-saving refrigeration and lighting systems | Preference for products certified for power efficiency |
| packaging materials | Paper cups, PLA cups, recyclable lids, reusable cups, return systems | Market expansion due to government regulations |
| Interior | Recycled wood, eco-friendly paint, and upcycled furniture | Brand Identity + ESG Integration |
| IT/Operations | POS·QR payment·reusable cup collection platform | ESG data measurement and customer reward integration |
Ⅲ. Supplier Network (Example Snapshot)
field | Key Suppliers/Partners | note |
|---|---|---|
| Coffee beans and beverages | Triple Planet, a local roastery with caffeine-free and balanced acidity | Fair Trade and Eco-Friendly Certification |
| Cups and packaging materials | Loop Cup, Nature Pack, Gorilla Cup | Reuse/Deposit Return System |
| Interior | Livewood, Zero Design | Eco-friendly materials and ESG certified construction |
| IT/Operations | Reusable Rewards App, POSBANK Eco Version | Recovery rate and carbon data management |
| Vegan Dessert OEM | Brown House, Sweet Planet | Vegan Certified Bakery Delivery |
Ⅳ. Demand and Consumer Trends
Trend | detail |
|---|---|
| The spread of eco-friendly consumption centered on the MZ generation | "Value Consumption = Identity" → Preference for Reusable Cups and Vegan Desserts |
| Refill and return systems become routine | 17 local governments nationwide are participating, expanding the introduction of "Loop Cups and Return Stations." |
| Strengthening SNS branding | A consumer culture centered on photos of "sustainable interiors + local menus" |
| Popularization of vegan menus | The proportion of vegan cakes, milk, and desserts will increase from 7% to 15% (2023-2025). |
| Corporate ESG-linked consumption | Preference for brands that disclose ESG reports from their franchise headquarters |
V. Technology and Operational Innovation
- AI-based inventory and bean management : Predicting sales volume, temperature, climate, and time zone → Reducing bean waste by 20-30%.
- IoT energy saving system : Reduce power consumption by 10-15%.
- Reusable cup data loop : Real-time monitoring of the number of times it has been collected, washed, and reused.
- Digital ESG Dashboard : Real-time sharing of carbon savings between headquarters and franchisees.
- QR Rewards Program : Earn points and receive a free drink when you return your reusable cup.
VI. Investment and Profit Structure (Based on Franchisees)
item | Range/Points |
|---|---|
| Initial costs | 90 million to 150 million won (interior and equipment cost of 60% or more) |
| Sales structure | ① Coffee beverages 60% ② Desserts/reusable products 25% ③ ESG rewards/goods 15% |
| Net profit margin | 18~25% (2~4%p higher than the average for general cafes, ESG reward effect) |
| Payback period | 24-30 months (shortened when reusable system is established) |
| risk | Increased initial investment, cleaning logistics, and training costs |
VII. ESG and Eco-Friendly Status
- As of 2024, the goal is to reduce disposable cups in franchise cafes by 42% , and by 2026, by 60%.
- The Ministry of Environment's 'Reusable Cup Pilot Project' is being expanded nationwide (11 metropolitan areas including Seoul, Busan, and Jeju).
- The adoption rate of eco-friendly certified interiors (green building materials) is 35% or higher.
- With the trend toward mandatory ESG reporting at headquarters, management of carbon reduction indicators at franchise level is being strengthened.
Ⅷ. Risk Factors and Response Strategies
risk | influence | react |
|---|---|---|
| Increased initial costs | Burden of unit costs for eco-friendly facilities and materials | Introduction of joint procurement and reusable lease models |
| Burden of cleaning logistics costs | Delayed recovery and loss | Regional cleaning centers and AI recovery predictions |
| consumer fatigue | Concerns about reusability, cleaning hygiene, and inconvenience | Simplifying QR Rewards and Refillable Cups |
| ESG certification costs | Burden on small brands | Utilizing public support and green vouchers |
Ⅸ. AI Prediction Loop (2025-2026)
characteristic | direction | reason |
|---|---|---|
| Eco-friendly consumption index | Rise (+12%) | MZ and public institutions continue their campaign |
| Reusable cup recovery rate | Rise (currently 52→65%) | Nationwide expansion of the government deposit system |
| ESG brand preference | rising | Maintaining a trust index of 0.82 |
| Raw material unit price | Consistent ~ Slight increase (+3%) | International coffee bean and PLA price fluctuations |
Ⅹ. Conclusion and Implications
1️⃣ ESG and eco-friendly operation are no longer optional but the central axis of “brand identity . ”
2️⃣ Headquarters, suppliers, and franchisees must share ESG data in real time and establish a transparent reduction and reporting system
. 3️⃣ Diversification of revenue through reusable, vegan, and local collaboration models is essential, and
growth rates for the next two years are expected to depend on ESG performance and public-linked certification.
4️⃣ The regulations for priority entry of ESG-certified brands into local government and public institution supply cafes (installed in public buildings, schools, and hospitals) will be strengthened.
One-line summary:
The core of the eco-friendly cafe franchise is “sustainable experience consumption + ESG data management + reusable infrastructure,” and
by 2026, the market will be restructured into a “value-consumption-centered cafe.”
