Approaching 17,000 Won... Soaring Samgyetang Prices Raise Growing Concerns Over Health Food

Average Price of a Bowl of Samgyetang in Seoul on the Rise
Impact of Increased Labor and Other Ancillary Costs Despite Falling Raw Chicken Prices
Distribution Industry Actively Targeting HMR Health Food Market

As the demand for health-boosting foods during the hot summer days of Sambok is expected to increase, the average price of a bowl of Samgyetang in Seoul is steadily rising, approaching 17,000 won, increasing the burden of dining out. Despite a recent drop in the price of live chickens due to increased supply, rising labor and other ancillary costs, along with the continued upward trend in Samgyetang prices, have led the distribution industry to target the related market with home meal replacements (HMR) health foods.

According to the Korea Consumer Agency's comprehensive price information portal Chamgagyeok on the 14th, the average price of a bowl of Samgyetang at restaurants in Seoul last month was 16,885 won, up 2.8% from the same period last year (16,423 won).

The price of a single serving of Samgyetang in Seoul has increased by 20.6% (2,885 won) compared to seven years ago. It entered the 14,000 won range in June 2017, seven years ago, surpassed 15,000 won in July 2022, five years later, and rose to the 16,000 won range in January last year. Famous Samgyetang specialty restaurants such as Tosokchon and Goryeo Samgyetang already charge 20,000 won for a basic bowl of Samgyetang, while Wonjo Hosu Samgyetang and Nonhyeon Samgyetang sell theirs for 18,000 won.

The continuous rise in Samgyetang prices is because the decrease in the farm price of live chickens, the main ingredient, is not reflected in the distribution process, while labor costs, rent, and other material costs are rapidly increasing. Recently, the supply of broiler chickens has increased due to a rise in the number of chicks being stocked. The Agricultural Outlook Center of the Korea Rural Economic Institute forecasts that the number of broiler chickens slaughtered this month will be between 69.56 million and 70.97 million, a 4.4% increase compared to the same period last year. As a result, the farm price is expected to fall to around 1,600 to 1,800 won per kilogram compared to the previous year. The increase in broiler supply is expected to continue until next month, which includes Malbok (the last of the three hottest days). The number of broiler chickens slaughtered in August is projected to increase by about 1.0% year-on-year to between 68.3 million and 69.68 million. However, there is a possibility of fluctuations depending on whether damage occurs due to heatwaves or heavy rains.

In fact, as the supply of chicken meat has increased this year compared to last year, retail and wholesale prices of broiler chickens are declining. According to the Livestock Products Quality Evaluation Service's Livestock Distribution Information, as of the 11th, the average retail price of chicken meat per kilogram was 5,988 won, down 6.7% from 6,420 won on the same day last year. Wholesale prices are also on a downward trend. The average transaction price last month for 10-ho chicken meat (excluding brining, cutting, packaging fees, and value-added tax), which is supplied in bulk to franchises, was 3,277 won, down 10.7% from 3,668 won in the same period last year.

On the 10th, a day before Chobok, the first of the three hottest days in summer, citizens and foreign tourists crowded a Samgyetang restaurant in Jongno-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Despite the drop in live chicken prices, the continued rise in dining costs has pushed Samgyetang prices to around 20,000 won, prompting not only large supermarkets but also convenience stores, e-commerce, and home shopping sectors to hold promotional events for Samgyetang ready meals to attract the 'home health food enthusiasts' who enjoy health-boosting foods at home.

Lotte Department Store is holding a collaborative pop-up store with 'Jin Jeonbok Samgyetang,' a famous Samgyetang restaurant in Nonhyeon-dong, and 'Wando Boy,' a distributor of abalone, at its main store food hall until the 25th, selling representative health foods for Chobok such as 'Maesaengi Samgyetang,' 'Abalone Porridge,' and 'Abalone Chicken Gangjeong.' Shinsegae Department Store is showcasing eel and abalone through a 'Health Food Special Price Event' until the 15th.

The convenience store industry is releasing a variety of ready meals. GS25 launched new health-boosting ready meals such as whole electric-roasted chicken, freshwater eel rice bowl, Yours Harim Mala Samgyetang, and chicken leg kalguksu in line with the demand for Chobok. CU, operated by BGF Retail, introduced two types of ready meals topped with whole freshwater eel ahead of Chobok. Seven Eleven is selling 12 types of health-boosting ready meals, including Samgyetang and grilled eel, at special prices.