In recent years, cakes have shown the highest increase in unit sales price among bakery items. In particular, some premium cakes are sold at prices higher than their production costs, making them relatively high-profit items. However, as prices have risen, there is growing consumer dissatisfaction, with the price of a single slice of cake now exceeding 10,000 won, which is comparable to the cost of a meal.

원본보기 아이콘

According to the "Bakery Industry Market Analysis and Major Regulatory Competition Impact Assessment" report received by the Fair Trade Commission from the Kongju National University Industry-Academic Cooperation Foundation on August 2, the change in unit sales price for cakes was the largest among detailed bread categories. The unit sales price for cakes was 1,414 won per kilogram in 2020, but soared to 13,381 won in 2022, a tenfold increase in just two years.

The report analyzed that, due to the impact of COVID-19 in 2020, outings and gatherings decreased, leading to increased demand for lower-priced products such as sheet cakes and small packaged cakes, which caused the average unit sales price of cakes to temporarily decline. After the pandemic subsided, demand for premium cakes for anniversaries and gifts recovered, and consequently, the unit sales price began to rise again.

The increase in unit sales prices for premium cakes such as mousse cakes and tiramisu was particularly notable. The unit sales price for mousse cakes rose from 6,080 won in 2020 to 24,337 won in 2022, about a fourfold increase, while tiramisu went from 19,553 won to 25,401 won during the same period, a 1.3-fold increase. As unit sales prices rose, profitability also increased relatively. As of 2022, the difference between unit sales price and production cost was 8,230 won for mousse cakes and 7,152 won for tiramisu. This level of profitability is higher than that of other items such as donuts (2,546 won), castella (1,334 won), and pies (1,867 won).

The selling price of cake was 1,414 KRW per kilogram in 2020, but it soared to 13,381 KRW in 2022, increasing tenfold in just two years.

Recently, the price of a single slice of cake has exceeded 10,000 KRW, leading to growing consumer complaints that it is comparable to the cost of a meal.

Some franchise cafes have introduced desserts that are more expensive than meals.

Franchise companies are also adjusting prices in response to increased demand for premium cakes and rising raw material costs.Twosome Place raised the prices of 58 items, including cakes and beverages, by an average of 4.9% in March. As a result, the price of its signature menu item, "Strawberry Chocolate Fresh Cream" (Seuchosaeng), increased from 37,000 won to 39,000 won, and the two-tier Seuchosaeng cake rose to 48,000 won.The prices of cake slices have also increased. "Fresh Strawberry Milk Fresh Cream" is now priced at 9,500 won, nearly 10,000 won, while "Pave Chocolate Cake" and "Fresh Blueberry Yogurt Fresh Cream" are each sold at 8,800 won.

With cake prices now comparable to lunch costs, the financial burden on consumers is growing. In fact, according to an analysis of 9 million mobile meal voucher transactions by NHN Payco in the first half of this year, the average lunch price for office workers nationwide was 9,500 won. The average lunch price in the first half of the year has risen every year from 6,000 won in 2017, marking a roughly 58% increase over eight years.

Some franchise cafes are now offering desserts that are more expensive than meals. Starbucks Korea launched the limited-edition "Shine Muscat Fresh Cream Cake" (12,500 won) for the summer season, along with desserts such as "Melon Kuchen" (8,900 won). Hollys has also introduced desserts targeting consumer tastes, such as "Apple Mango Abundant Round" (7,900 won) and "Round Melon Dome Cake" (6,800 won).

원본보기 아이콘

However, there is also analysis suggesting that high-priced desserts do not necessarily guarantee high profitability. Park Miseong, a researcher at the Korea Rural Economic Institute and author of the report, stated, "Mousse cakes and tiramisu contain cream, so they have short distribution and consumption periods and require refrigeration during distribution and sales, which can result in higher unit sales prices. However, considering distribution costs and sales risks, it is difficult to conclude that margins are always high."

She added, "Product prices are determined by comprehensively considering a variety of factors, including supply and demand, raw material costs, and labor costs. While price increases may help boost profits for sellers, there is also the possibility that they could lead to sluggish sales, so careful judgment is required."