This Summer's 'Zero' Showdown... Lotte vs Binggrae, Ice Cream 'Game of Thrones'

Lotte Wellfood Introduces Zero-Calorie 'Screw Bar' and 'Jaws Bar'
Haitai Ice Launches 'Polaro Coffee Zero Sugar' This Month
130 Trillion Won Global Ice Cream Market...Inevitable Competition

Lotte Wellfood and Binggrae, the two leading companies in the domestic ice cream industry, are preparing to compete once again by launching zero-calorie and zero-sugar products ahead of the peak summer season.

According to industry sources on the 9th, Lotte Wellfood will release two zero-calorie products under its flagship ice cream brands, 'Screwbar' and 'Jawsbar.' The newly introduced 'Screwbar 0kcal' and 'Jawsbar 0kcal' use the natural sweetener allulose instead of sugar, replicating the original taste of Screwbar and Jawsbar while reducing calories. This is the first zero-calorie ice cream product launch in the domestic ice cream industry.

Lotte Wellfood's 'Zero Calorie Screw Bar, Jaws Bar'

Haitai Ice Cream, a subsidiary of Binggrae, is also responding with a zero-sugar ice cream. Haitai Ice Cream plans to launch 'Polarpo Coffee Zero Sugar' later this month. This product is made by adding coffee flavor to Haitai Ice Cream’s steady seller 'Polarpo,' using alternative sweeteners such as erythritol, maltitol syrup, and sucralose instead of sugar. Polarpo is currently sold in five flavors: grape, sports, peach, plum, and rainbow.

The domestic ice cream market is currently characterized by fierce competition between the two giants, Lotte Wellfood and Binggrae. Previously, the market was a multi-player competition involving Lotte Confectionery, Binggrae, Lotte Food, and Haitai Ice Cream. However, in March 2020, Binggrae acquired Haitai Ice Cream and took the top spot in the industry.

But in 2022, with the merger of Lotte Confectionery and Lotte Food into Lotte Wellfood, the number one position was reclaimed by Lotte Wellfood. As the market reorganized into a two-horse race, competition has intensified. Last year, Lotte Wellfood ranked first with retail sales of 579.3 billion KRW, capturing a market share of 39.86%. However, the combined market share of Binggrae and Haitai Ice Cream was 39.85%, making the difference between the two companies a razor-thin 0.01 percentage points.

Haitai Ice Cream's 'Polar Pop'

Both companies are launching zero-calorie and zero-sugar products ahead of the peak summer season to capture the growing demand for health-conscious options. As consumers increasingly reject ice cream with high sugar and carbohydrate content, the industry is responding by releasing products that consider health.

Lotte Wellfood is more aggressive with zero products. Before launching stick-type zero products like Screwbar, Lotte Wellfood expanded its lineup to seven by introducing four new ice cream products under the sugar-free dessert brand 'Zero' this month. A Lotte Wellfood representative explained, “In consumer surveys, ice cream was consistently ranked as the number one product consumers wanted to see under the Zero brand,” highlighting the reason for expanding choices ahead of the peak season.

On the other hand, Haitai Ice Cream appears to be avoiding an all-out battle with zero products. A Binggrae representative stated, “We plan to monitor market reactions through limited zero product releases and consider future response strategies.”

Industry insiders expect the two companies to continue their competition in overseas markets as well. The domestic market faces clear growth limitations due to declining birth rates and a shrinking population, including children. In contrast, overseas markets are showing rapid growth, supported by improvements in cold chain infrastructure and advances in rapid freezing technology. According to market research firm Euromonitor, the global ice cream market is expected to reach $94.842 billion (approximately 129 trillion KRW) this year. This represents a 13.6% growth over two years compared to $83.474 billion in 2022.

Both companies have been steadily increasing their ice cream export performance. Lotte Wellfood’s ice cream export revenue reached 28.1 billion KRW last year, a 34.6% increase from the previous year. Their related sales have grown rapidly each year, from 11.4 billion KRW in 2020, 13.7 billion KRW in 2021, to 20.19 billion KRW in 2022. Binggrae’s ice cream export revenue also increased by 15.8% to 68.8 billion KRW, growing 88.4% over the past three years. Overall export revenue is also rising quickly. According to the Korea Customs Service, ice cream product exports increased from $54.18 million in 2019 to $93.10 million last year.