Korean ice cream scoops record $59M in export sales

Industry

Published: 31 Jul. 2023, 18:03

Korean ice cream scoops record $59M in export sales

Foreign students at Keimyung University in Daegu savor a Korean ice cream on July 11 in celebration of this year's Chobok — the first day of the hottest season according to the traditional Korean calendar. [NEWS1]

Korea's ice cream exports reached a record $59 million in the first half of the year, driven by a scorching global heat wave and the popularity of the Korean Wave.

Ice cream exports for the first half of 2023 increased by 19.8 percent compared to the previous year to reach $59 million, according to the Korea Customs Service on Monday. Compared to ten years ago, it increased by 168.2 percent.

The rise in export value was accompanied by an increase in export quantity, with approximately 18,000 tons of ice cream being shipped out during the first half of the year, equating to around 240 million ice creams.

During the first half of this year, Korean ice cream was exported to a total of 49 countries, marking the highest number of export destinations ever recorded during the same period. The United States emerged as the leading consumer of K-ice cream, importing $19 million worth and accounting for 31.6 percent of the total.

"The surge in demand for Korean ice cream can be attributed to the unprecedented global heatwave, as well as the growing popularity of K-pop, K-dramas, and other aspects of Korean culture," the customs office explained.

Second place was China at 12.2 percent. Notably, China — which previously was always top among the five largest importers of Korean ice cream — made a strong comeback in the rankings after dropping off last year due to the pandemic.

Other major importers include the Philippines at 10.3 percent, Canada at 8.4 percent and Vietnam at 5.1 percent. However, challenges persist in the European market due to regulations prohibiting the export of Korean dairy-based ice cream to the European Union.

In the United States, Binggrae's Melona emerged as the top-selling product, constituting around 70 percent of ice cream exports to the United States. Between 2009 to 2021 alone, the sales figures of Melona amounted to $250 million. The increased sales can be attributed to local production and sales through the OEM (original equipment manufacturer) process, such as at Costco.

In Vietnam, Binggrae's Samanco gained popularity as a high-end ice cream product, achieving annual sales exceeding 6 million units, while Lotte Wellfood's Snow Ice proved popular in China.

The domestic market, however, faces challenges.

The Korea Agro-Fisheries & Food Trade Corp (aT) reported a 3.7 percent decline in the domestic ice cream market size in 2022, at 1.3 trillion won ($1 billion), compared to the previous year. The continuing trend, averaging an annual decline of 6.1 percent since 2018, can be attributed in part to a decrease in the key consumer group of children and teenagers. The declining trend in fertility has been notable in Korea — with the country reporting a natural decrease in population with only 18,988 babies born in May, showing a 5.3 percent decrease from the previous year.

Additionally, rising health consciousness among consumers, leading to a preference for less sweetened and alternative sweeteners, has also played a role in declining domestic ice cream sales.

BY SEO JI-EUN, KIM KI-HWAN [seo.jieun1@joongang.co.kr]