Prices of Snacks Also Rise One After Another... Increases in Kkotge-rang and Satto-bap Starting This Month

[Asia Economy Reporter Koo Eun-mo] Amid a series of price hikes in the food industry recently, some snack prices will also increase starting this month.

According to the food industry on the 1st, Binggrae will raise the prices of six snack products by 13.3% from that day. After the increase, snack products such as Kkotgerang, Vegetable Time, Jacky Jacky, and Smoky Bacon Chip will be priced at 1,700 KRW from 1,500 KRW at convenience stores. Prices will be raised sequentially in other distribution channels as well. A Binggrae official stated, "Due to the rise in raw material costs such as flour and palm oil, we have adjusted snack product prices for the first time in eight years since 2013."

Earlier, Nongshim raised the ex-factory prices of 23 snack products by an average of 5.7% starting from the 15th of last month. This is a re-increase about one and a half years after March last year. Nongshim explained that since April this year, international conflicts and inflation have caused raw material prices to surge and exchange rates to rise, intensifying cost burdens. In particular, after increasing the supply prices from domestic partner companies since the second quarter of this year, Nongshim’s manufacturing cost burden has further increased, according to the company.

Orion also raised prices of 16 products including pies, snacks, and biscuits out of a total of 60 products by an average of 15.8% starting the same day. By major products, Choco Pie increased by 12.4%, while Pokachip, Kkobuk Chip, and Yegam rose by 12.3%, 11.7%, and 25%, respectively.

In addition, Samyang Foods is also known to raise convenience store prices of three products?Sattobap, Jjanggu, and Popeye?by 15.3% due to raw material price increases. A Samyang Foods official said, “Unlike ramen, snacks are focused more on the domestic market than exports, and due to recent material cost increases, we inevitably plan to raise prices.” However, they added, “The specific timing of the price increase is still under internal discussion.”