Latest South Korea Market Updates

South Korea tends to grow of confectionery products import although Korea maintains a strong processing industry in terms of confectionery market. Imported packaged food is rapidly growing and diversifying, because consumer tastes are changing and demand for high-quality and exotic products are increasing.

As of 2016, South Korea imports 51,292 metric tons of confectionery items from the world. The total value of import was $256 million (includes only sugar candies and chocolate). The United States exports 5,219 metric tons ($34 million), which takes about 13 percent from the total value of import. (www.customs.or.kr)

Recently products with high cocoa content are most popular among Koreans, who prefer premium chocolates and chocolate in bars. Chocolates and other food preparations containing cocoa have an 81% share in the Korean market, and an import value of $323 million (include sugar candies, chocolate and ingredients) in 2014, an increase of 13.8% from the previous year. It is followed by the importation of cocoa powder without added sugar and cocoa paste, with import amounts in the order of $26.1 million and $17.3 million respectively.

Interestingly, giving a gift is extremely important for chocolates and sugary candies with some brands making over 90 percent of their annual profits on Valentines’ Day (February 14th), White Day (March 14th) and Christmas. Traditionally, women give chocolate to men on Valentine’s Day and men return the favour a month later on White Day with chocolate and sugar candies. Christmas is another very important season, and significant sales are made through cake and chocolate. Especially, the total sales of bakery dessert such as cakes are significant on Christmas holiday seasons.

Imported chocolates are popular and common in Korea. According to the Korea Customs Services, total imports were $79 million in 2015. The top three countries exporting chocolate confectionery to Korea were Italy ($23 million), Germany ($16 million) and the U.S ($15 million), followed by Switzerland, Belgium, China and Japan. Especially, European countries hold strong market presence in the minds of Korean consumers for example, Italy’s Ferrero Rocher, Switzerland’s Lindt and Toblerone and Germany’s Litter.

Korean consumers enjoy premium chocolate as an alternative luxurious dessert will case boxed assortments with premium packaging to show a constant growth for next few years. Meanwhile, countlines will continue to show positive value growth at constant prices by replacing energy bars, lower calories and the healthy factors of nut and cocoa butter by manufacturers.