Osulloc: From Field To Cup, The Korean Tea

For many years, Japanese food and beverage culture has been the flagship of Asian gastronomy in Western countries, particularly in Europe. However, after eight consecutive years of increasing exports, Korea has emerged as a new and formidable player in the international market. From your perspective, how do you envision the future of Korean culinary culture? What do you see as the main drivers for Korean food and beverage culture, including tea, to become the leading Asian presence globally?

That’s an excellent question and a critical direction for the K-food industry to consider. I believe the Korean food industry is still in its early stages, with tremendous growth potential. However, sustaining this growth requires more than simply replicating local dishes and cultural experiences in different regions. The key lies in tailoring and customizing offerings to meet local tastes and preferences.

To maintain this momentum of Korean food gaining popularity, we need to continue innovating and developing products that combine the unique strengths of the Korean food and beverage with adaptations to local markets. This principle also applies to tea. Authentic black or green tea alone might not suffice; we need to synergize our brand identity with local preferences to create a compelling offering.

In 2023, the U.S. imported over $500 million worth of tea. In France, tea consumption has tripled over the past 25 years. You’ve mentioned the importance of tailoring offerings to match consumer habits, cultures, and needs. How do you think Korean tea can adapt to these different drinking cultures?

I believe two factors must work hand in hand: leveraging our strengths and respecting local preferences. Harmony between these elements is essential. For example, Osulloc’s greatest advantage is its tea farms located in the mid-mountain region of Hallasan on Jeju Island. These farms, along with our in-house production capabilities in Jeju, give us a significant competitive edge in going global. Unlike many global tea brands that source ingredients from overseas and create blends, we are genuine tea makers with full control over our supply chain—from cultivation and production to packaging and distribution. This allows us to incorporate customer feedback directly into our products, ensuring responsiveness to market demands.

Furthermore, the growing global interest in Korean culture presents an unprecedented opportunity. As Korean culture gains popularity worldwide, this "K-wave" can translate into increased curiosity about and demand for Korean food and beverages, including tea. This cultural momentum, combined with our fully integrated production capabilities, positions us uniquely on a global scale.

Moreover, wellness is becoming a central theme in consumer preferences. When people think about wellness, they prioritize safe, high-quality food. With our meticulous quality control systems, we are well-positioned to meet this demand. If consumers recognize and appreciate the safety and care behind our products, we’re confident we can promote our global value proposition as a premium brand.

Osulloc’s tea farms in Jeju Island

As Osulloc is mainly considered premium, how do you see opportunities in Western markets, both from younger audiences riding the K-culture wave and from the older generations seeking premium, high-quality, authentic products?

When competing on the global stage, our tea products often fall into the premium category. Fortunately, the current generation’s ability to leverage vast amounts of data quickly and efficiently, gives us confidence that through customer introductions and word of mouth, we can gradually close the perception gap around pricing and build acceptance for our premium offerings.

Customers, whether young or old, are willing to invest when they recognize the expertise, research, and quality ingredients that go into the products. As we strive to continuously communicate our brand’s quality, authenticity, and unique story, we hope to cultivate a loyal customer base willing to pay for premium products. The process maybe a slow one, but it will come from a genuine approval.

Do you believe premium products will dominate the tea industry, given that more people are prioritizing wellness over price?

Many consumers today are guided by their own unique values when making purchasing decisions. They conduct independent research and often take cues from family members, including their children.

Some choices may prioritize cost-competitive options. Others will reflect those who are willing to invest in premium products if they perceive good value for the price. Nonetheless, consumer behavior takes on various aspects and is not uniform; many are now looking beyond price tags to consider factors like quality, sustainability, and wellness benefits. For the tea industry, this presents opportunities to cater to more diverse segments.

Our brand offers various values, from daily tea to high-quality tea, tea for beginners to connoisseurs, sustainability, organic cultivation, and even a unique story of transforming barren land into a lush green tea field. We think it is important to offer a diverse and comprehensive range of products that align with the ever-growing range of customer values.

The tea industry has seen significant growth, but it has also become increasingly competitive. What makes Osulloc unique, and how do you differentiate yourselves from other brands?

Many of the global brands you mentioned source their raw materials from various regions and focus on blending and packaging rather than managing the entire process. This highlights a difference: Osulloc is a genuine tea maker, in control of every step, from cultivation to production, distribution, and packaging.

A second key differentiator is freshness. As a relatively novel brand on the global stage, we bring something new and captivating to international audiences. Jeju Island and its green tea are still unfamiliar to many, but this unfamiliarity lends an air of mystique. Our raw ingredients, such as the green tea leaves, camellia flowers and tangerines grown on Jeju, combined with a brand inspired by the island’s natural beauty, offer a unique narrative that resonates with consumers seeking authenticity and a connection to nature. These qualities set us apart in a crowded marketplace.

As a general tea consumer rather than an expert, when I think of black tea, I associate it with China. When I think of green tea, Japan comes to mind. While Korea might not yet have a strong global reputation in the tea industry, this doesn’t mean that Korean tea lacks quality or flavor. What do you believe to be the key advantages of Korean green tea?

I’d like to broaden the perspective and talk about "Korean tea" rather than just green tea, as much depends on how the tea is processed and prepared. Korean tea has a unique strength in its ability to develop tea products that cater to evolving market trends.

It’s important for a growing business to stay in sync with these changing trends. This requires understanding the preferences and lifestyles of modern consumers, and that’s exactly what we’re focused on. We continuously track market dynamics and use that insight to develop products that meet current demands.

For example, Osulloc has been exporting raw tea ingredients to the U.S. and Europe for over 15 years, but it wasn’t until 2020 that we began offering finished products on platforms like Amazon. Now, we are expanding into offline markets overseas. Within just six months, we developed new products based on customer feedback, demonstrating our agility in responding to evolving consumer preferences.

Our approach—test, learn, and adapt—allows us to stay ahead of the curve. By listening to our customers in the U.S. and Europe and tailoring our offerings accordingly, we’re not just introducing Korean tea to the world; we’re redefining Korean tea culture in a way that resonates with global audiences.

A tea room inside Osulloc’s Bukchon Tea House, Seoul

Born on the basaltic lands of Jeju Island, Osulloc has grown to become one of South Korea’s most renowned premium tea brands, emphasizing organic farming and sustainable cultivation. The company was founded by Mr. Jangwon Suh Sung-Whan 45 years ago. Could you walk us through the history of Osulloc and its evolution from a local tea farm to a global tea brand?

Amorepacific Founder Sungwhan Suh was deeply inspired by the traditional teas he encountered during his overseas business trips. However, he was saddened that Korea’s tea culture had largely faded during the Joseon Dynasty and was, by then, almost forgotten. While already leading a successful cosmetics company, he was driven by a vision to revive and preserve Korea’s tea heritage.

Initially, the idea of entering the tea business faced significant resistance. People around him dismissed it as unprofitable, arguing that it would be easier to buy tea ingredients and blend them with flavors rather than cultivate tea leaves. Despite this, Founder Sungwhan Suh was unwavering in his determination. In 1979, he began searching for the ideal location to grow tea in Korea. After years of searching, he identified the Hallasan region in Jeju as the perfect site and worked tirelessly to establish tea cultivation there.

At the time, tea was unfamiliar to most Koreans. Its bitter taste was off-putting to many—much like the initial reaction to black coffee when instant coffee mixes were more popular. Undeterred by these challenges, Founder Suh initiated an annual tea symposium to educate the public about the merits and benefits of tea. These events garnered media attention and eventually introduced tea’s virtues to a broader audience.

To appeal to local tastes, he modified the way the tea production method to adjust the tea to have a greener color and more of the savory taste that Koreans love. These changes and accumulated expertise in various processing methods have led to the creation of an extensive lineup, from premium master teas to convenient tea bags. These products gained international recognition, winning awards at global tea exhibitions, which further elevated Osulloc’s reputation on the world stage.

A pivotal milestone came in 2001 with the opening of the Jeju Tea Museum, a project that Founder Suh envisioned as his legacy. The museum was developed by his son, current Chairman Kyungbae Suh and symbolized a dream fulfilled. Although it initially struggled to attract visitors, it has since become a major cultural landmark, drawing around 2 million tourists annually.

In the mid-2010s, Chairman Kyungbae Suh made a bold decision to streamline Osulloc’s operations. He believed that the fragmented structure of multiple brands and channels hindered the company’s ability to establish itself as a premium brand. As a result, he unified all sales channels under the Premium Osulloc brand, focusing on exclusive channels such as landmark Tea Houses, high-end department stores, and duty-free shops.

Throughout his life, Founder Suh faced considerable skepticism about the tea business. To critics who questioned its profitability, he often replied, “Even if this business doesn’t yield profits in the short term, it will become a blessing for us in the long run.” Looking back, his vision has been realized in Osulloc’s journey to becoming a globally recognized premium tea brand.

How does Osulloc integration within Jeju’s ecosystem, economy, and lifestyle influence your brand philosophy and tea flavors?

Our Jeju Tea Museum plays a pivotal role in this integration. Historically, Jeju was primarily known as a tourist destination. However, the Tea Museum has transformed the island into a hub for tea culture and leisure.

Visitors can now enjoy activities such as tea classes, tea ceremonies, walking tours through the tea farms, and even sampling freshly brewed teas on-site. While tea cultivation would traditionally fall under the primary industry of agriculture, we handle everything here – from secondary industry packaging to tertiary industry services. We also incorporate scientific technology in our fields, making us a leading representative of this holistic industry model we have created in Jeju.

Moreover, we take pride in employing local talent for both our tea factories and tea houses, which directly supports Jeju’s economy. By hiring Jeju natives and sourcing locally—such as the Jeju-grown Hallabong and local bakery goods—we maintain strong relationships with local farmers, creating a win-win ecosystem.

Our tea farms, spanning 1 million pyeong (approximately 3.3 million square meters), also contribute significantly to environmental sustainability. These carbon sinks remove CO2 emissions by about 110,000 tons annually—equivalent to the carbon footprint of round-trip flights for 100,000 passengers. This effort positions Osulloc as an eco-friendly brand, committed to both local and global environmental stewardship.

Finally, Jeju’s unique volcanic soil and pristine environment lend a distinctive character to our teas, enhancing their flavor profile. When visitors look out over the vast tea fields from the museum, they gain a deeper appreciation for the tea in their cups and find rest within nature, creating an authentic and memorable connection with our brand.

In recent years, Osulloc has ramped up its efforts in the U.S. market. A 2022 seeding campaign distributed your blended teas to influencers and prominent personalities. Additionally, Osulloc sponsored Gabriela Hearst's Autumn-Winter 2023 fashion show at the Brooklyn Navy Yard. How do you envision the U.S. market contributing to your company’s growth?

Expanding into the U.S. market was a strategic decision for us. For Korean brands to go truly global, the U.S. often serves as a critical gateway, providing access not only to North America but also to Europe and other regions. The U.S. is a melting pot of cultures and tea preferences, making it an ideal testing ground for diverse products.

In the U.S., tea consumption varies widely. Some consumers are drawn to matcha, others to herbal or blended teas, while many prioritize tea for its health benefits. This diversity aligns perfectly with our product range and innovative approach. Additionally, the U.S. tea market is substantial, valued at approximately $12 billion out of the global $56 billion tea market. It is one of the fastest-growing and most dynamic tea markets worldwide.

Our goal is to use the U.S. as a hub for piloting new products and gaining insights from consumer preferences. Through initiatives like our seeding campaign, we are becoming a brand endorsed by global stars such as Jessica Alba and Gwyneth Paltrow, building brand awareness among influential circles. By participating in cultural events like Frieze, we are also expanding our touchpoints and targeting a global audience.

The U.S. also offers a unique opportunity to tap into the wellness trend, which aligns closely with our philosophy of producing premium, eco-friendly teas. By positioning Osulloc as a lifestyle brand that blends wellness, sustainability, and Korean culture, we aim to capture both health-conscious consumers and tea enthusiasts who appreciate high-quality, unique flavors.

Osulloc boasts a rich history of crafting high-quality tea. Among your renowned products, we recognize your Master’s Collection, rolled traditionally by a tea master; Sejak Green Tea, which uniquely blends the bright, vegetal notes of steamed tea with the subtle roasted warmth of pan-fired tea; and Moon Walk Tea, a distinctive Korean pear blend. Which flavors do you believe will resonate most with your U.S. audience?

Interestingly, our Moon Walk Tea, which is a bestseller in Korea, has also performed exceptionally well in the American market. It’s currently our top-selling single product on Amazon in the U.S. This highlights a fascinating aspect of tea preferences—despite cultural and environmental differences, there seems to be a shared essence in what people find enjoyable and therapeutic. As international exchange continues to grow, I believe these shared preferences will only deepen, bridging the gap between global consumers.

Sejak, Osulloc’s most-loved classic green tea

While Osulloc originally distributed primarily through regional department stores in South Korea, your strategy has shifted significantly toward e-commerce. How are you adapting this approach to the U.S. market? Do you intend to push strongly into e-commerce, or do you see an opportunity to open flagship stores in major cities, as some competitors like Kusmi or TWG have done?

Given Amazon’s influence in the U.S. market, our primary focus is currently on building a robust online presence through this platform. However, tea is a sensory experience, and physical interactions with the product can significantly enhance customer engagement. While opening dedicated tea houses in the U.S. is not yet in our immediate plans, we are exploring ways to expand our offline footprint strategically.

For instance, we’re working with Metropolitan Market in Seattle to enhance our presence in premium organic grocery stores. We have also entered shelves in Erewhon, a high-end organic store based in LA, broadening our reach in curated retail environments. These offline touchpoints allow us to introduce our products directly to consumers while fostering brand recognition. Once we establish a strong foundation in the West, we plan to replicate this model across other regions, including the Midwest and East Coast.

Ultimately, our strategy will balance the convenience of e-commerce with the immersive experience of physical retail, ensuring we connect with customers in a meaningful and multi-dimensional way. Offline pop-up events could also be effective in providing brand experiences, allowing customers to taste and interact with our teas.

For more information please visit: https://us.osulloc.com/