Samjong KPMG: "'K-Binggwa' Rising... Ice Cream Market Landscape Changing"

Last Year’s Ice Cream Export Value Increased by 20% Year-on-Year, Reaching an All-Time High
Diversification of Distribution Channels with ‘Unmanned Ice Cream Discount Stores and Delivery Apps’
Expansion of Ice Cream Market Entry by Different Industries Including Dairy and Convenience Stores
"K-Binggwa Must Secure Global Market with Differentiation Strategy"

Last year, ice cream exports reached $93.1 million, marking a 20% increase compared to the previous year and achieving a record high. Alongside the global craze for K-Bing, the competitive landscape of the ice cream market is undergoing significant changes.

Samjong KPMG, in its report titled 'The Ice Cream Market Smiles Again, What Are the New Changes?', forecasted that the global ice cream market will reach $103.4 billion in 2024, with a sustained compound annual growth rate of 5.0% from 2018 to 2029.

In particular, the U.S. market saw imports of Korean ice cream exceed $23.38 million from January to August 2024, an 18.5% increase compared to the same period last year. In China, imports reached $7.74 million during the same period, establishing Korea as the fifth largest ice cream importer after France, New Zealand, the U.S., and Japan.

Domestic ice cream companies are accelerating their overseas market penetration through differentiated strategies tailored to the characteristics of each country. Binggrae is focusing on the U.S. and European markets beyond Southeast Asia, while Lotte Wellfood is concentrating on expanding sales in the Indian ice cream market based on its subsidiaries and local factories.

With the increase in consumers seeking health alongside sweet flavors, the ice cream industry is leading new changes by continuously launching products that consider low-calorie, low-sugar, vegan, high-protein, and functional attributes.

Notably, Lotte Wellfood and Binggrae have released low-calorie versions of their popular products and are also investing efforts in developing vegan ice cream using alternative dairy ingredients. Lala Sweet, having succeeded in the domestic market with low-calorie products, is expanding its presence in overseas markets as well.

Changes have also appeared in the distribution structure due to the rise in consumption through unmanned ice cream discount stores and delivery apps. Unmanned discount stores are rapidly growing based on the expansion of contactless consumption and low-cost operation models, while the activation of ice cream orders via delivery platforms has advanced quality maintenance technologies such as dry ice packaging and specialized cooling containers.

Entry into the ice cream market by companies from other industries is also notable. Maeil Dairies and Seoul Milk are actively targeting the market with premium ice cream using their own raw milk brands, while convenience store chains are enhancing cost-effectiveness and offering trendy products through collaborations between private brand (PB) products and popular brands.

The report analyzed that the domestic ice cream market stands at a turning point to overcome the limitations of the domestic market and secure global growth momentum.

It urged ice cream companies to actively pursue overseas markets based on localization strategies, seek new markets, and enhance competitiveness through product development that aligns with changing consumer trends and innovation in ice cream manufacturing technologies. Furthermore, it recommended discovering opportunities within the new competitive landscape by responding to evolving consumer trends and distribution environments.

Shin Jang-hoon, Vice President and Consumer Goods & Distribution Industry Leader at Samjong KPMG, emphasized, "The domestic ice cream market is rapidly changing in terms of consumer trends, distribution channels, and competitive structure. Ice cream companies must respond to changes in the domestic market while seeking new business opportunities overseas to secure growth engines."