With 26% youth and growing middle-class population, India becomes attractive market for Korean brands

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With 26% youth and growing middle-class population, India becomes attractive market for Korean brands

Published: 18 Jun. 2025, 11:40 Updated: 18 Jun. 2025, 17:56

Audio report: written by reporters, read by AI

A Hazzys shop in Myeong-dong, central Seoul [LF]

Korean fashion and food companies are increasingly turning their attention to India, driven by growing interest from local youth and middle-class consumers in clothing worn and foods eaten by K-drama characters and K-pop stars.

“Out of India’s 1.4 billion people, 26 percent are in their teens or 20s, making them quick to embrace new cultures,” said an industry insider. “That appetite is now expanding into fashion and food consumption.”

India has been among the world’s five largest economies since 2014, maintaining an average annual growth rate in the 7 percent range, according to the Korea Trade-Investment Promotion Agency (Kotra).

The country’s fashion market, in particular, is showing strong growth. Market research firm Statista projects India’s fashion market will grow from $105.5 billion in 2024 to $122.4 billion by 2028.

Korean companies are targeting India’s middle class, which numbers approximately 430 million. With rapid industrialization, this segment has expanded, and those with annual incomes between $10,000 and $25,000 are showing heightened interest in fashion.

A billboard advertisement of Lotte Wellfood's Dweji Bar ice cream in India [LOTTE WELLFOOD]

Dewji Bar ice cream [LOTTE WELLFOOD]

“India’s caste system previously hindered the development of the fashion industry,” said a fashion industry source. “Korean clothing, which features high-quality fabrics and design but is more affordable than European or American brands, has become popular.”

“The rise in India’s golf population — now at 3.5 million — has also boosted interest in golf wear, which benefits K-fashion,” the insider said.

Capitalizing on this trend, LF is preparing to introduce its fashion brand Hazzys to India. In March, it signed a strategic export agreement with local investment firm Asian Brands Corp and plans to open the first store under a local brand in the second half of this year — the first Korean fashion label to do so.

“We will lead with golf wear and expand to various products, aiming to open 10 brand stores within three years,” said LF.

Shelves filled with snacks and instant noodles at a convenience store in Seoul on March 30 [YONHAP]

Lotte Group Chairman Shin Dong-bin, right, inspects Lotte Wellfood's India factory in Pune, India, on Feb. 9. [LOTTE]

The K-food market in India is also expanding. In addition to snacks like Pepero and Choco Pie and instant noodles, there is now growing demand for frozen foods such as ice cream and even alcoholic beverages. According to Kotra, Korea’s food exports to India grew from $3.77 million in 2019 to $8.26 million in 2022, and $11.64 million in 2023.

Lotte has been particularly aggressive. In February, Lotte Wellfood completed a factory in Pune, India, where it has added a frozen dessert line to produce frozen dessert brands such as Dweji Bar and Jaws Bar. The demand for frozen products is growing as India’s cold chain infrastructure improves. Lotte Group Chairman Shin Dong-bin attended the factory’s completion ceremony and emphasized, “India is a key milestone in Lotte’s global food business.”

Orion also made a fresh capital injection of 6.7 billion won ($4.9 million) into its Indian subsidiary this January to fund operations and production facilities. The company’s revenue in India surged from just 3.1 billion won in 2021 to 21.1 billion won last year, prompting continued investment. Traditional liquor maker Andong Soju also entered the Indian market last year, focusing on fruit-based liquors with alcohol contents of 16.5 percent and 12 percent.

“With Korea facing declining birthrate and slowing growth, India offers an attractive destination for expansion,” said a food industry insider. “We expect more investment in the near future.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY CHOI HYUN-JU [[email protected]]