Domino Price Increases in the Food Industry: "Bread, Snacks, and Ice Cream All Getting More Expensive"

Price Increase Wave Continues in Food Industry
Comprehensive Hikes Across Food, Beverage, Bread, and Confectionery

Since the beginning of the year, domino price increases have continued in the food industry. Following last year, the trend of widespread food price hikes is expected to persist this year, further increasing the burden on the grocery bills of ordinary citizens.

According to the industry on the 28th, major food companies have been announcing price hikes one after another following the Lunar New Year holiday. Lotte Confectionery will raise convenience store prices of frozen products such as pork cutlets and dumplings by 5-11% starting next month on the 1st. After the increase, chewy roll dumplings and kimchi roll dumplings will rise from 3,500 won to 3,900 won, and meat tong gyoza and kimchi tong gyoza will increase from 5,400 won to 5,900 won. Confectionery products will also be raised sequentially. After the increase, Margaret will go from the existing 3,000 won to 3,300 won, and Choco Pepero and Kkokkalcorn will each rise from 1,500 won to 1,700 won. Ghana chocolate and Mok candy will also increase from 1,000 won to 1,200 won. Among ice cream products, Screw Bar and Jaws Bar will rise from 500 won to 600 won, an increase of 100 won, and World Cone, Chaltteok Ice, and Seolleim will increase from 1,000 won to 1,200 won. Ten types of Naturru pint products will also increase by 2,000 won from 12,900 won to 14,900 won.

Binggrae will also raise ice cream prices starting next month. This is a price adjustment occurring one year after last year. Accordingly, seven types of ice cream including Melona and Bibibik, as well as Super Cone, will increase from 1,000 won to 1,200 won, a 200 won increase. Haitai Ice Cream will also raise prices of 20 types of Baryu ice cream by an average of 20% starting next month.

Haitai Confectionery will raise prices of three products produced by its joint venture by an average of 14.8%. The increased prices will be applied sequentially by client starting from the 16th of next month. Pocky and Roasted Onion prices will rise from 1,500 won to 1,700 won, and Jagabee will increase from 1,700 won to 2,000 won. Nongshim Kellogg will also raise prices of cereal products such as Corn Frost and Chex Choco by around 10% starting next month on the 1st.

Beverage prices are also expected to rise. Jeju Special Self-Governing Province Development Corporation will raise the ex-factory price of Samdasoo by an average of 9.8% starting next month on the 1st. This is the first price increase in five years since 2018. After the increase, Samdasoo will be sold at 480 won for 500ml and 1,080 won for 2 liters at large supermarkets. Woongjin Foods will also raise convenience store prices of 20 beverage products by a minimum of 100 won and a maximum of 300 won starting next month. The representative product, Green Plum, will increase from 1,300 won to 1,400 won for the 180ml product, a 7.6% rise, and Morning Sunshine will increase from 2,000 won to 2,150 won for the 500ml product, a 7.5% rise.

Fast food and bakery products have also joined the price hike trend. Paris Baguette will raise prices of 95 items by an average of 6.6% starting next month on the 2nd. Fresh bread (large) will increase from 3,200 won to 3,300 won, and cheese sausage pastry will rise from 2,800 won to 2,900 won. Lotte GRS’s burger franchise brand Lotteria will also raise product prices by an average of 5.1% starting the same day. A total of 84 items, including 14 types of burgers, will be subject to price increases, with average price hikes of 200 to 400 won per product.

Price increases in the alcoholic beverage industry are also anticipated. The liquor tax, which is applied to alcoholic beverages, is scheduled to increase in April. The liquor tax on beer and Makgeolli (traditional rice wine) will rise by 3.57%, with beer increasing by 30.5 won per liter to 885.7 won, and Makgeolli increasing by 1.5 won per liter to 44.4 won. Typically, liquor companies raise prices immediately after liquor tax hikes, so it is expected that liquor companies will simultaneously adjust prices following the tax increase this time as well.

The industry cites internal and external environmental changes such as rising raw material, logistics, and labor costs due to the prolonged COVID-19 pandemic as factors driving price increases. Although it has been customary to raise product prices at the beginning of the year, last year saw continuous price hikes throughout the year across the food industry, with some companies adjusting prices twice a year, leading to increased consumer complaints.