'Cupbap' Prices Rise 6.9% in One Year... Up to 48% Price Difference Depending on Retailer Type

Sales Price Change Rate of Home Meal Replacements by Item (Source=Korea Consumer Agency)

[Asia Economy Reporter Lee Seung-jin] With the increase in single-person households and the implementation of social distancing measures due to the novel coronavirus infection (COVID-19), the demand for Home Meal Replacements (HMR) is rising. Amid this trend, the price of cupbap products has increased by an average of 6.9% over the past year.

According to an analysis by the Korea Consumer Agency conducted from the 16th to the 25th of last month on the selling prices of 42 products across 12 HMR categories available in the market, it was revealed on the 28th that prices of five categories, including cupbap, instant jjajang and curry, and ramen, have risen.

Among the 11 categories for which year-over-year price comparisons were possible, cupbap prices increased the most at 6.9%. Specifically, among the six cupbap products surveyed, 'Ottogi Jeyuk Deopbap 280g' and 'CJ Cupban Jikhwa Bokkeum Jjajang Deopbap 280g' showed the highest price increases at 11.8% and 10.5%, respectively. Conversely, 'Ottogi Hamburg Deopbap 280g' saw a 2.3% price decrease compared to the previous year.

Instant jjajang prices rose by 5.6% year-over-year, influenced by a 16% price increase in 'Ottogi 3-Minute Beef Jjajang 200g' among the two products surveyed. 'Daesang Cheongjeongwon Old-fashioned Jjajang 180g' experienced a slight 1% price decrease compared to the previous year.

Prices for ramen and cup ramen increased by 1.1% and 0.4%, respectively, showing little fluctuation. Instant curry prices rose slightly by 0.5% year-over-year.

Items that saw price decreases compared to last year include instant rice (-0.7%), instant porridge (-1.4%), instant soup (-2%), cup soup (-2.9%), tang and jjigae (-3.8%), and soup (-4.4%), totaling six categories. For instant porridge, price differences were observed among manufacturers; Dongwon's prices increased year-over-year, whereas Ottogi's prices decreased.

Major Household Convenience Food Purchase Costs by Business Type. (Source=Korea Consumer Agency)

Meanwhile, price differences for HMR products vary by distribution channel, with disparities reaching up to 48%.

The product with the largest price gap was 'Ottogi Delicious Ottogi Rice (210g)', which sold for 1,891 won at supermarkets (SSM) but was 48.3% cheaper at large discount stores, priced at 978 won. The next largest price difference was for 'Dongwon Yangban Chestnut Red Bean Porridge (285g)', which was 46.5% more expensive at convenience stores (3,900 won) compared to SSM (2,085 won).

'Ottogi Jin Ramen Mild (120g·5-pack)' showed the smallest price gap between the lowest and highest prices across distribution channels at 6%, and 'Daesang Cheongjeongwon Old-fashioned Jjajang (180g)' also had a relatively small price difference of 8.2%.

When comparing the total purchase cost of 10 common HMR products available across five distribution channels?large discount stores, traditional markets, SSM, department stores, and convenience stores?large discount stores were the cheapest at 19,972 won.

They were followed by traditional markets (22,025 won), SSM (22,626 won), department stores (22,978 won), and convenience stores (27,325 won). Large discount stores were 26.9% cheaper than convenience stores and 13.1% cheaper than department stores.

The Korea Consumer Agency advised, "Since there are significant price differences depending on the purchase time and sales outlet even for the same product, it is recommended to check sales prices and discount information on the 'Chamgagyeok' website, which provides weekly price information on daily necessities, before making a purchase."