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Gen Z is swearing off sugar. Chocolate makers are determined to win them back.

Published: 21 May. 2025, 07:00 Updated: 21 May. 2025, 18:57

Chocolates [GETTY IMAGES]

In “Charlie and the Chocolate Factory” (2005), characters drift through rivers of cocoa — a dreamland for many in the West, where chocolate is an everyday treat. In Korea, though, chocolate flows less freely, often reserved for romantic holidays or thoughtful gestures.

Still, domestic brands like Ghana Chocolate, known for its simple and slim milk chocolate bar, have managed to turn this occasional indulgence into decades of steady success by leaning on quality and emotional connection.

Now, with wellness trends on the rise and luxury imports filling shelves, Korean chocolate brands are stepping up their game — or they risk being left behind in a market that is quickly evolving.

No sweet tooth? no problem

“I don’t usually buy chocolates for myself,” said Lee, an office worker in her 20s. “But I give them to colleagues or family on special occasions like Valentine’s Day.”

In Korea, chocolate is less about everyday indulgence and more about social expression — a way to say “thank you,” “I’m sorry” or “I like you.” It’s most often shared on special occasions like Valentine’s Day.

According to data platform Statista, the average Korean consumed about 700 grams (24.5 ounces) of chocolate in 2022, a far cry from Switzerland’s 11.8 kilograms and Germany’s 5.8 kilograms per person.

“Chocolate’s relatively short history in Korea and its early image as an expensive treat have limited its consumption as a daily snack,” said an official from the Korea Research Association of Cacao. “But that same perception has also helped position it as a popular gift or special-occasion treat.”

Lotte Wellfood released retro packages featuring designs from its original 1975 launch, as well as from 1987 and 2002, to celebrate the 50th anniversary of Ghana Chocolate. [LOTTE WELLFOOD]

While this might sound like a marketing challenge, Lotte Confectionery — now Lotte Wellfood — embraced it when it launched Ghana Chocolate in 1975. Realizing that customers who may not eat chocolate daily might crave quality and emotional resonance, the company set out to offer chocolate as a medium “to share happiness with loved ones, to comfort oneself and to find peace of mind” — and ultimately, to “create a masterpiece, not just a product.”

To bring that vision to life, Lotte sought advice from top chocolate experts including Swiss engineer Max Bracks, who helped design Ghana Chocolate’s factory and formulate its ingredients to ensure the highest standards of quality.

Over its half-century run, Ghana has continuously refined its taste and texture through innovations like micro-grinding. In 1996, it became the first Korean brand to adopt Better Taste and Color processing, in which cacao nibs are ground into uniformly small pieces, rinsed with steam and then roasted.

“We oversee every step of production, from raw cacao to final packaging, to reinforce consumer trust in Ghana’s quality,” said a Lotte Wellfood official.

A large screen at the Atelier Ghana exhibition plays an early advertisement featuring actress Chae Shi-ra, along with other commercials from over the years. [WOO JI-WON]

But it wasn’t just about perfecting the recipe. Ghana built emotional ties with consumers through sentimental marketing. Its early TV advertisements — soft-toned, heartwarming and focused on love and friendship — featured top stars of the time including Chae Shi-ra and Lee Mi-yeon. That emotional resonance continues to shape how people see and buy the brand today.

But Ghana, which celebrates its 50th anniversary this year, hasn’t been the only key player shaping Korea’s chocolate market.

Haitai Confectionery and Foods was actually first on the scene, launching Korea’s first domestically made chocolate, Nahana, in 1967. It continuously expanded its lineup with a variety of offerings including its chocolate bar Free Time, introduced in 1990, which remains Haitai's top seller today with 2024 sales reaching 48.6 billion won ($34.7 million).

Free Time is a Korean equivalent of the U.S. popular chocolate snack Snickers, but with smoother texture by embracing smaller and milder peanut fillings. “The pairing of Free Time's nougat and peanuts is appealing, earning the love of many customers,” said a Haitai official.

Haitai Confectionery and Foods’ Free Time Salted Caramel edition [HAITAI CONFECTIONERY AND FOODS]

Rather than chasing new trends, Haitai has long leaned into the comfort of familiarity. It continues to bring back childhood memories with long-running favorites like White Angel — cat- and lion- shaped chocolates from the early 1990s — and Choco Kit, a DIY-style chocolate launched in 2005, both of which still spark excitement among both kids and adults alike.

Food company Orion quickly joined the chocolate game in 1968 with its Number 1 Chocolate bar and has since built a reputation for quiet consistency over flashy campaigns. “We focus more on R&D and the quality of our products,” said an official from Orion, now known for chocolate snacks like Diget Ball.

New flavors, creative moves

Since 2018, Korea's chocolate industry has shrunk by an average of 7.5 percent per year, with total sales falling to 749.7 billion won in 2021 from 931.9 billion won in 2018. This decline has largely been driven by a shrinking young population and growing health-conscious eating habits, according to the Food Information Statistics System.

People hold Bateel's chocolates at its store in Lotte World Mall in Jamsil, southern Seoul, which opened in November 2024. [YONHAP]

At the same time, competition from imported brands has intensified. In 2023, chocolate imports surged to $123.4 billion, up 28.4 percent from 2019. Premium foreign brands are also expanding their presence, including Dubai’s Bateel, which opened its first East Asian store at Jamsil, southern Seoul’s Lotte World Mall in November 2024.

Global chocolate products like the Italian Ferrero Rocher and Swiss Läderach have already taken over a significant space at snack corner of convenience stores and supermarkets.

Domestic brands are doing what they can to jump on the train.

Lotte Wellfood tapped into the “healthy pleasure” trend — products that offer indulgence without the guilt — by expanding its sugar-free Zero line with Zero Mild Chocolate, a guilt-free option for health-conscious consumers.

Companies are also diversifying their offerings to keep up with evolving consumer tastes. Orion introduced Tokping in 2021 — a modern twist on bark-style chocolate, featuring a cacao-rich base and generous layers of toppings. Lotte Wellfood followed with Premium Ghana, an upscale take on its classic bar, created for those craving a more refined chocolate experience and positioned as a premium dessert offering.

Premium Ghana chocolates [LOTTE WELLFOOD]

As competition heats up — especially with more foreign brands entering the market — connecting with younger consumers, including Millennials and Gen Z, has also become crucial, pushing brands to get creative.

Orion recently launched an online event inviting customers to design their own Tokping creations, with winners receiving prizes — tapping into the personalization trend that resonates strongly with younger consumers.

Lotte Wellfood is also ramping up its outreach. “We’ve been actively promoting and marketing the brand since 2022,” said a Lotte Wellfood official. “That includes hosting Ghana Chocolate House pop-up stores in trendy neighborhoods like Seongsu-dong.”

Space designed by artist Grafflex for Atelier Ghana, a special exhibition at Jamsil’s Lotte World Tower in celebration of Ghana Chocolate's 50th anniversary. [LOTTE WELLFOOD]

The company also opened Atelier Ghana, a special exhibition at Jamsil’s Lotte World Tower, in celebration of Ghana Chocolate’s anniversary last month.

Running through June 29, the exhibit features artwork from five artists — including Grafflex and the mysterious artist Coin Parking Delivery — each offering a unique interpretation of their Ghana Chocolate experience. All installations are designed to be visually captivating and photogenic — making them ideal for MZ generation visitors who enjoy sharing aesthetic moments on social media. Tickets are 12,000 won for adults and 6,000 won for children younger 13.

But will all this fanfare be enough to keep foreign snacks and health foods from overtaking classic chocolate brands as Korea’s go-to holiday indulgence?

It's too soon to tell. But one thing's for sure: Korean brands are putting in the effort. With imports on the rise and domestic consumption still catching up to global levels, the challenge lies in making chocolate feel more relevant and inviting to a new generation of consumers — whether through creative packaging, standout flavors or a fresh spin on nostalgia. What matters now is how today's young people respond.

BY WOO JI-WON [[email protected]]