Domestic Sales Stall... K-Ice Cream Overseas Sales Jump 10% Each

2018~2022 Average Annual Export Growth of 13.2%
Popular in the US, Philippines, Canada, etc.
Domestic Sales Decline Due to Decrease in Main Buyer Demographic

Ice cream produced by domestic ice cream companies is gaining popularity in overseas markets, recording a double-digit average annual growth rate based on export value. Riding the wave of the K-content boom and increased interest in Korean products, coupled with ongoing heatwaves due to abnormal global climate, demand for cool snacks has surged, resulting in brisk sales.

According to the International Trade Centre (ITC) Trade Map on the 11th, last year’s export value of Korean ice cream reached $77.605 million (approximately 101.4 billion KRW), a 7.1% increase from the previous year. Exports have grown at an average annual rate of 13.2% over the past five years, up from $47.258 million in 2018.

By country, the United States accounted for the largest share of exports last year at 28%, followed by the Philippines (12.0%), Canada (9.4%), Vietnam (8.1%), Hong Kong (6.8%), Taiwan (6.0%), China (5.0%), Russia (4.2%), Japan (2.4%), and Saudi Arabia (2.1%).

The best-selling product in the United States is Binggrae’s Melona, which accounts for 70% of Korean ice cream exports. More than 250 million units of this product were sold in the U.S. alone from 2009 to 2021. Melona is also popular in the Philippines, Canada, and Hong Kong. In Vietnam, Binggrae’s Bungeoppang Samanco has attracted attention as a premium product, ranking high in local convenience stores’ ice cream sales. Consequently, Binggrae’s export performance more than doubled from 49.3 billion KRW in 2018 to 104.2 billion KRW last year.

Lotte Wellfood, which forms a duopoly with Binggrae in the domestic ice cream market, also saw its ice cream export value increase by 52.6% from 13.7 billion KRW the previous year to 20.9 billion KRW last year. An industry insider stated, "Interest in K-content is growing, and with localization strategies and expanded distribution channels, local consumers’ accessibility to Korean ice cream is improving," adding, "Korean ice cream is entering various countries, so there is a high possibility of export expansion in the future."

While standing out in overseas markets, domestic ice cream sales are declining. According to the Food Industry Statistical Information System (FIS) market analysis report by the Korea Agro-Fisheries & Food Trade Corporation (aT), the domestic ice cream market size last year was 1.3073 trillion KRW, down 3.7% from the previous year. The domestic ice cream market, which exceeded 2 trillion KRW in 2015, has been shrinking at an average annual rate of 6.1% since 2018. By distribution channel, convenience stores recorded sales of 238.5 billion KRW in the first half of last year, a 7.7% increase from the same period the previous year, while other sales channels such as general food stores, independent supermarkets, chain supermarkets, and discount stores all saw sales decline.

The ice cream industry views the decrease in the number of children and adolescents, the main consumers of ice cream, as the primary cause of the sales decline. Additionally, growing health concerns and increased worries about food additives such as sugar and alternative sweeteners are also analyzed to have affected ice cream sales.

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