SOUTH KOREA CHOCOLATE MARKET

INTRODUCTION

Theobroma cacao, or cacao tree, produces the roasted and ground seeds used to make chocolate, a well-liked sweet treat. To improve flavour and texture, chocolate may also contain other ingredients like lecithin, emulsifiers, and vanilla.

To create distinct and varied taste profiles, some chocolates are infused with different flavourings such as fruits, nuts, spices, or other ingredients.Chocolate is a flexible ingredient that can be used for many different culinary applications, such as baking, desserts, beverages, and confectionery.

Chocolate is preferred by South Korean consumers in a variety of ways; they like dark chocolate, premium varieties, and traditional milk chocolate. A growing trend is also towards chocolate products with inventive flavours. 

The South Korean market is home to both domestic and foreign chocolate manufacturers. South Korea has seen a discernible shift towards artisanal and premium chocolates.Gifts of chocolate are given and received frequently, particularly on holidays and other special occasions. 

SOUTH KOREA CHOCOLATE MARKET SIZE AND FORECAST

The South Korea chocolate market accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.

MARKET DYNAMICS

In South Korea, consumers are becoming more selective about small luxuries and high-quality products, which is driving up demand for premium chocolate brands. As a result, chocolate consumption is rising in the country. 

Customers who adhere to these trends are prepared to pay more for premium chocolate that has a high cacao content, premium ingredients, and few artificial additives. The trend towards a healthier way of living has also contributed to the rise in the popularity of dark and sugar-free chocolate. 

Supermarkets, convenience stores, specialised chocolate shops, and internet platforms are just a few of the outlets via which chocolate is sold. Similar to worldwide patterns, South Korea's consumer choices are being influenced by a growing consciousness of health and wellbeing. 

Marketing and promotional campaigns are common tactics used by chocolate brands to draw in customers.Companies in the South Korean chocolate market frequently use partnerships, limited-edition releases, and innovative marketing campaigns.

Chocolates and other sweet snacks are given as gifts on a variety of occasions in South Korea. The primary driver of the chocolate market worldwide is the rise in demand for luxury chocolate brands and boxed assortments.

RECENT ACQUISITION

Chocolate maker Marcolini in Brussels is being acquired by South Korean investor MBK via a Japanese subsidiary. VM2 Holdings has past involvement in the chocolate industry.  The company owns the Koekelberg factory and oversees the management of the Belgian chocolate brand Godiva in the Australian, South Korean, and Japanese markets.

The majority shareholder of the Brussels-based company, VM2 Holdings, will take over as the new owner of the British investment fund Neo, which paid approximately 15 million euros for 47% of Marcolini. 

Although owned by MBK Partners in South Korea, that company is Japanese.Laurent Levaux (Aviapartner) and François Schwennicke (ex-Delvaux), two of the four private investors, are being acquired by VM2 Holdings. The bulk of the shares are now owned by the Koreans.

RECENT DEVELOPMENT

Lotte Confectionery, the confection division of South Korean conglomerate Lotte, will enchant "Russkis" with "Mon Cher," a high-end chocolate cake snack with a cream filling, capitalising on the enduring appeal of Choco Pie, a snack cake covered in chocolate and filled with marshmallows.

Both Choco Pie and Mon Cher are round chocolate cakes about the size of a palm. The upgraded version of chocolate pie, called Mon Cher, has white cream instead of marshmallows, giving it a more authentic cake-like flavour. 

In addition, China, Vietnam, and numerous other nations love chocolate pie.  Mon Cher has been gaining traction overseas over time, but it's unclear if it will be able to win over Russian consumers' hearts to the same extent as Choco Pie.

There are four varieties of chocolate pies on the market: original marshmallow, strawberry, banana, and cacao. About ten television stations in Moscow and Saint Petersburg carried advertisements for Choco Pie from Lotte Confectionery. 

RECENT TRENDS

• Rising Demand for Premium Chocolates Source: Due to the rise in imported chocolate, the popularity of premium chocolate, chocolate-making classes, and handmade chocolate, chocolate consumption in South Korea has expanded.  South Korean consumers like fine chocolates and especially favour pricey boxed chocolates, which are sold in the nation's upscale stores, for gift-giving. 

• Taste preferences of consumers.Consumers in South Korea are demanding a greater range of chocolates, including dark chocolate, premium chocolate, and chocolates with unusual ingredients or fillings, as they become more accustomed to the tastes and cuisines of other countries.

• Consumers  seeking healthier chocolate options: For example, chocolates that are darker and contain more cocoa, chocolates that are lower in sugar, and chocolates that have functional ingredients like fruits and nuts added. In response to this need, chocolate producers are providing healthier substitutes.

• Growth of e-commerce and online retail platforms: As a result, chocolate products now have more avenues of distribution. With online shopping, customers can readily obtain a large selection of chocolates from both domestic and foreign brands. The market for chocolate is expanding in part because of this convenience factor.

COMPETITIVE LANDSCAPE

Orion Corporation is a South Korean confectionery company. Products produced by Orion include chocolate biscuits, cookies, crackers, pies, gum, snacks, and candy; and its most famous product is Choco Pie. They operate 11 plants in China, Russia, Vietnam, and India, and continue their growth with offerings beloved by their consumers around the world with a strict localization strategy.

Ferrero is one of the world’s largest sweet-packaged food companies, with over 35 iconic brands sold in more than 170 countries. More than 46,000 employees are passionate about helping people celebrate life's special moments.The Ferrero Group brings joy to people around the world with much-loved treats and snacks, including Nutella, Kinder, Tic Tac and Ferrero Rocher.

Mars  iconic products like M&M’S, SNICKERS, ORBIT, EXTRA and Skittles are enjoyed in more than 180 countries. From chocolate to chewing gum, we have more than 34,000 Associates working hard to improve the way we source, make and market our products. Investing $1 billion to build a new cocoa supply chain model centred on smallholder farmers.

THIS REPORT WILL ANSWER FOLLOWING QUESTIONS

1. How much chocolate is manufactured in South Korea? Who are the sub-component suppliers in different regions?
2. Cost breakup of a South Korea chocolate market and key vendor selection criteria
3. Where is the chocolate manufactured? What is the average margin per unit?
4. Market share of South Korea chocolate manufacturers and their upcoming products
5. Cost advantage for OEMs who manufacture chocolate in-house key predictions for next 5 years in South Korea chocolate market
6. Average B-2-B chocolate market price in all segments
7. Latest trends in South Korea chocolate market, by every market segment
8. The market size (both volume and value) of the South Korea chocolate market in 2024-2030 and every year in between?
9. Production breakup of chocolate market, by suppliers and their OEM relationship