Domestic Confectionery Market Revives After Being Overshadowed by Imported Snacks... Imports Decline and Exports Soar

Q1 Confectionery Exports Approximately 36,000 Tons... Up 7.3% YoY
Orion and Lotte Confectionery Develop Localized 'Killer Items'
Domestic Sales Rise Driven by Newtro and Cost-Effectiveness

[Asia Economy Reporter Choi Sunghye] The confectionery industry, which had remained stagnant at around 5 trillion won for years due to competition from imported snacks, is making a comeback this year riding the 'K-Food' wave. Consumption of imported snacks has sharply declined, and since the COVID-19 pandemic, snack consumption has increased domestically due to remote work, while overseas demand for Korean snacks alongside Korean cuisine is also rising.

According to the Korea International Trade Association (KITA) and Shin Young Securities Research Center on the 8th, domestic confectionery exports in the first quarter reached approximately 36,000 tons, up 7.3% compared to the same period last year. Conversely, domestic confectionery imports during the same period were about 46,000 tons, down 3.5% year-on-year. By subcategory, exports of bread and pies increased by 17.5%, chocolates by 13.9%, and candies and gums by 21.5% compared to the previous year.

Orion and Lotte Confectionery are actively targeting overseas markets. They continuously introduce killer items tailored to local tastes abroad. Orion launched a 'berry-flavored Choco Pie' familiar to Russian consumers. Following the release of raspberry and cherry-flavored Choco Pies in the second half of last year, they expanded their localized product lineup by introducing a black currant flavor in January this year.

Lotte Confectionery's 'Spout Gum' Gaining Popularity in the Middle East

Lotte Confectionery plans to intensify its push into the Middle East (Saudi Arabia, United Arab Emirates, Kuwait, etc.) through 'Spout Gum.' Spout Gum holds a dominant position with over 70% market share in the block-type gum market in the Middle East. Key products include cinnamon mint-flavored gums preferred in the region. A Lotte Confectionery official stated, "Last year, Spout Gum generated sales of approximately 7 to 10 million USD in the Middle East," adding, "We expect this year's performance to increase by more than 10% compared to last year."

Orion 'Dodo-han Mini Minacho'

Domestically, sales are rising by leveraging the newtro trend and cost-effectiveness. Due to the increase in single-person households and preference for low-calorie foods, small-packaged products that are easy to hold and eat are popular. Orion introduced 'Orion Value Snacks' reflecting the cost-effectiveness trend, including 'Chicken Pop,' 'Potato Inside Potato,' and 'Dodo Mini Me Nacho.' Nongshim launched three one-hand size products reduced to about one-third of their original size: 'Mini Indian Rice Snack,' 'Mini Banana Kick,' and 'Mini Pretzel Cookie & Cream Flavor.'

Lotte Confectionery 'Monster Margarette' 2 Types

Lotte Confectionery expanded its product line after launching the small-sized 'Kkokkalcorn PLAY,' adding variants like 'Kkokkalcorn Strawberry Party.' Crown Confectionery released a pocket-sized 'Jolly Pong Marshmallow' following 'Honey Peanut Caramel Corn.' The cost-effectiveness strategy of increasing product quantity without changing prices is also in full swing. Orion recently increased the quantity of the beloved heart-shaped jelly 'Jelly Day' by 29% without a price change and significantly upgraded its quality. Lotte Confectionery introduced two types of 'Monster Margaret,' a homemade cookie style with the size of the popular biscuit 'Margaret' more than doubled.

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