Early New Year Living Costs Surge... From Food to Cosmetics, Everything Rises

Beverage Prices Including Coca-Cola Rise Simultaneously
Cosmetics and Household Goods Prices Fluctuate

[Asia Economy Reporter Lee Seon-ae] From the very beginning of the new year, living costs are showing unusual signs. Prices are rising simultaneously from food to cosmetics, increasing the burden on consumers. Typically, prices tend to rise amid the chaotic atmosphere at the end and beginning of the year, and this year is no exception. Moreover, considering that price increases were not implemented last year due to the impact of the novel coronavirus disease (COVID-19), it is expected that price hikes will flood across the industry this year.

Cola Prices Raised for the First Time in 4 Years

According to LG Household & Health Care on the 4th, beverage subsidiaries Coca-Cola Beverage and Haitai htb raised prices of major products as of the 1st. First, the 'Coca-Cola' can sold at convenience stores increased from 1,400 won to 1,500 won, the 500ml PET bottle from 2,000 won to 2,100 won, and the 1.5L PET bottle from 3,400 won to 3,600 won. In addition to Coca-Cola, Coca-Cola Beverage adjusted the price of sparkling water 'Seagram' from 1,300 won to 1,400 won, a 100 won increase. A Coca-Cola Beverage official explained, "The price increase for convenience store cola products is the first in 4 years and 2 months since November 2016," adding, "Price adjustments were inevitable due to changes in the distribution environment and rising costs, but we are continuously striving to reduce expenses."

Haitai htb adjusted the price of 'Gara Madeun Bae' (pear juice) from 3,900 won to 4,300 won (1.5L) and Pyeongchang water from 1,400 won to 1,500 won (2L).

On the same day, Dong-A Otsuka also raised prices of key products such as 'Pocari Sweat,' 'Demi Soda,' and 'Oronamin C.' The Pocari Sweat can increased from 1,300 won to 1,400 won, Demi Soda can from 1,200 won to 1,400 won, and Oronamin C from 1,000 won to 1,200 won. This is the first price increase by Dong-A Otsuka in about 2 years and 7 months since May 2018. A Dong-A Otsuka official stated, "We had refrained from raising prices as much as possible, but due to accumulated inflation factors and overall increases in raw material costs, logistics costs, and other company expenses, the price increase became unavoidable."

Household Goods and Cosmetics Also Stirred

Prices of household goods and cosmetics are also fluctuating. Korea P&G raised prices of four types of Febreze Baseline?Fresh Scent, Subtle Scent, Downy Scent, and Herb Scent?as of the 1st. Accordingly, the price of Febreze Baseline increased by 10.2%, from 5,900 won to 6,500 won.

LG Household & Health Care adjusted prices of all products under the cosmetics brand 'belif' as of the 1st. The average increase rate is around 10%. The representative products of belif, known among consumers as the so-called 'bomb cream,' 'The True Cream Moisturizing Balm (50ml)' and 'The True Cream Aqua Balm (50ml),' rose from 42,000 won to 46,000 won each, and the jumbo size increased from 67,000 won to 73,000 won.

A belif official said, "We have tried to maintain reasonable prices despite increases in raw materials and sales management costs, but due to continuous rises in auxiliary materials and costs, it became unavoidable to raise prices for all products," adding, "We will continue to strive to repay customers with good products and even better services."

As manufacturers raised delivery prices, convenience store chains also adjusted prices one after another. Seven Eleven raised prices of 15 types of 'Duracell' batteries by an average of 3% on the 22nd of last month. 'Duracell Deluxe' 2A and 3A packs of 2 increased from 2,950 won to 3,000 won, and 2A and 3A packs of 4 increased from 5,700 won to 5,800 won.

GS25 raised prices of some over-the-counter medicines and quasi-drugs on the 21st of last month. 'Daeil Band Smart' was adjusted from 3,900 won to 4,900 won, 'Daeil Band Mixed 21' from 1,500 won to 1,700 won, and 'Daeil Band General 8' from 800 won to 900 won. The wound treatment ointment 'Madecassol Ointment 8G' increased by 500 won from 6,900 won to 7,400 won, the digestive medicine 'Bea Je Jeong' from 1,500 won to 1,800 won, and 'Doctor Bea Je Jeong' from 1,700 won to 2,000 won.