Polarization in Ice Cream Consumption... Binggrae with Bravo Cone "Stealing Store Customers"

Packaged Ice Cream ↓·Store-Sold Ice Cream ↑
Ice Cream Companies Focus on Launching Premium Products and Strengthening Strategies

[Asia Economy Reporter Lee Seon-ae] Polarization in consumption is occurring in the domestic ice cream market. While the market size of 'product-type ice cream' sold at neighborhood supermarkets and the like is steadily shrinking, the market for 'store-sold ice cream' sold at stores is expanding. In response, related companies are also focusing on the store-sold ice cream market and actively developing their businesses, while traditional ice cream manufacturers offering product-type ice cream are putting all their efforts into strengthening premium product strategies to regain lost customer demand.

According to Euromonitor on the 27th, the domestic product-type ice cream market continues to decline. The market, which reached 2 trillion won in 2015, has fallen to the 1 trillion won range. As of last year, the market was 1.6163 trillion won, about 20% less compared to 2015. The emergence of ice cream discount specialty stores and excessive discount policies by ice cream brands, with discount rates reaching 50-70% in a 'cutting one's own flesh' style, are the causes.

On the other hand, consumer demand for premium ice cream is on the rise. The ice cream specialty store market, classified as part of the dining-out industry like Baskin-Robbins, is growing steadily. This means that consumers are willing to spend more on ice cream with rich flavors and unique tastes, even if it is the same ice cream. The market size of ice cream specialty stores, represented by Baskin-Robbins, reached 914.4 billion won last year. This is about a 46% increase from 627 billion won five years ago.

In particular, as the infant population decreases and various dairy alternatives such as almond milk emerge, dairy companies struggling with milk sales are entering the ice cream market, causing the ice cream specialty store market to grow further. Quality ice cream using their own milk, such as Paul Bassett by M's Seed, a subsidiary of Maeil Dairies, Baekmidang by Namyang Dairy Products, and Milk Hall 1937 by Seoul Milk Cooperative, has been recognized and popular among consumers, leading to consecutive sales increases.

Moon Kyung-sun, Senior Researcher of Food & Nutrition at Euromonitor International Korea, predicted, "The premium ice cream market has grown significantly over the past five years, so while explosive double-digit growth is difficult, gradual growth is expected to continue as food companies enter the market."

As the ice cream specialty store market expands, ice cream manufacturers are strengthening their product lineups and strategies centered on premium ice cream. Researcher Moon said, "Binggrae's acquisition of Haitai Ice Cream appears to be a bold move targeting premium ice cream consumer demand," adding, "Considering Binggrae's approach to the ice cream market, it is expected that after acquiring Haitai Ice Cream, Binggrae will accelerate the dual strategy of premiumization and mass brand development, which has been loved for a long time."

In fact, Binggrae has set plans to target the premium market. Together, made with domestic raw milk rather than formula milk, is Korea's first ice cream of its kind, forming a premium image and focusing on premium marketing. Additionally, Glaceau, which debuted in 2005 with a rare premium ice cream concept at the time, has been fully renewed this year, implementing the use of domestic raw milk and improving the quantity and quality of raw materials.

They also plan to focus on enhancing the brand competitiveness of products owned by Haitai Ice Cream. A Binggrae official explained, "Since Haitai Ice Cream owns many competitive products such as Bravo Cone, we will focus on marketing to effectively promote these." Recently, Binggrae has also been expanding consumer engagement by featuring a virtual character model called 'Binggraeus The Mashis' on its official social media accounts.

Researcher Moon said, "Bringing in demand concentrated in ice cream specialty stores through a diverse product range and consistent premiumization strategy is a challenge Binggrae must solve going forward," adding, "If Binggrae's well-executed premiumization strategy and efficient distribution strategies of mass brands align, the ice cream market will be rapidly reorganized."

This content was produced with the assistance of AI translation services.