The functional beverage market is experiencing a rapid influx of innovative, wellness-driven concepts, with Korean-inspired brands carving out a distinct and fast-growing space. Among the most notable emergent players is Clôud Cafe, a brand that marries the aesthetic and ingredient-focused nature of South Korea’s renowned coffee culture with targeted inner-outer wellness benefits.
Launched in late 2024 by entrepreneur Olive Kim, Clôud Cafe initially debuted an assortment of collagen-infused coffees and teas. Now, the brand is gearing up for a significant retail expansion. Clôud Cafe is expanding its footprint across both Ulta Beauty and Target—two major retail partners the brand entered for the first time earlier this year—to reach more than 2,000 collective doors by November.
This rapid retail scaling marks a powerful continuation of Kim’s deep-rooted entrepreneurial journey in the beauty and wellness sectors. For Kim, whose family originally launched The Crème Shop as a Los Angeles manufacturing business in the 1980s, bridging cultural heritage with modern consumer demand is second nature. Kim previously transformed The Crème Shop into a powerhouse K-beauty product line before the brand was successfully acquired by LG H&H in 2022. Following that exit, Kim found herself fascinated by the multifaceted benefits of collagen, prompting a creative convergence of South Korea’s vibrant café culture and functional dietary supplementation.
Merging Korean Coffee Culture with Functional Wellness
The inspiration for Clôud Cafe stems directly from the dynamic, highly curated coffee scene found throughout South Korea. According to Kim, who is Korean American, the country’s approach to café culture places an extraordinary emphasis on visual presentation, ingredient integrity, and sourcing transparency.
“The coffee culture in South Korea is so innovative and so beautiful—every coffee shop is extremely aesthetically pleasing. They take a lot of pride in the ingredients they use and where their beans are sourced from. They each have specialty drinks,” Kim explained. Reflecting on her transition after exiting The Crème Shop, she noted, “I thought about combining the two—like, what if we could create a wonderful, delicious coffee that also has wellness benefits?”
This vision materialized into a lineup of convenient single-serving powder sachets designed to dissolve seamlessly in hot water. The drinks can be enjoyed hot, served iced, or paired with a consumer’s choice of milk, offering maximum versatility. Each serving of a Clôud Cafe beverage is packed with 1,000 milligrams of marine collagen. Beyond the core collagen ingredient, different varieties within the portfolio strategically incorporate other active components—such as vitamin C, zinc, L-theanine, and probiotics—to support holistic, inner-outer well-being.
Overcoming Taste Barriers Through Innovative Flavor Profiles
A major hurdle for many ingestible wellness products has historically been consumer palatability, particularly when it comes to marine-derived ingredients. Kim was acutely aware of these sensory challenges when developing Clôud Cafe’s flavor offerings.
“A lot of collagen powders or pills on the market are not that enjoyable to consume, they can have a very gamey or fishy aftertaste,” Kim noted.
To circumvent this common pitfall, Clôud Cafe developed a diverse and decadent menu of flavors that prioritize taste without compromising on wellness credentials. The brand’s current assortment features offerings such as Churro Latte, Ube Latte, Royal Milk Tea, Hot Choco Zero, and Strawberry Matcha Latte, which currently stands out as the brand’s top-selling product. By framing functional supplementation as an indulgent daily treat rather than a clinical chore, the brand has successfully captured the attention of mainstream consumers looking for enjoyable wellness routines.
Strategic Retail Partnerships and Accelerated Growth
Clôud Cafe’s partnership strategy has played a pivotal role in its rapid market penetration. In March, the brand made history by entering Ulta Beauty, marking a milestone as the very first coffee brand to be carried by the major beauty retailer. In addition to Ulta Beauty and Target, Clôud Cafe products are also available at Anthropologie, positioning the brand firmly at the intersection of prestige beauty, lifestyle, and wellness retail.
Buoyed by its upcoming expansion to over 2,000 collective doors in November, Clôud Cafe is currently on track to comfortably exceed $35 million in retail sales by 2026.
Reflecting on the brand’s early success within major retail environments, Kim highlighted the forward-thinking nature of her retail partners.
“[The Ulta team] is so innovative and open to new ideas, and Korean culture and Korean wellness,” said Kim, drawing a parallel to her earlier experiences launching The Crème Shop at Ulta during the very first major wave of the K-beauty phenomenon in the United States.
Deepening Community Engagement Through Experiential Marketing
While securing widespread national retail distribution is a cornerstone of Clôud Cafe’s growth strategy, the brand recognizes that experiential marketing and consumer trial are equally vital for long-term brand loyalty. Over the coming year, leadership plans to direct significant resources toward live events and targeted product sampling initiatives.
“For the next 12 months, our team is focused on doing a lot of community events,” Kim said, outlining the brand’s localized engagement roadmap. “We want to have people try our products directly, because as soon as they do, we’ve seen they instantly fall in love with it.”
