"It's Even Tastier Because It's Cheap"... Bread Sales Soar Amid Price Surge [The Secret of Bread Prices]

Consumers Seek Alternatives Amid Rising Bread Prices
Active Sharing of Frozen Raw Dough Recipes on SNS
Convenience Store Bread Sales Continue to Grow Every Year

Editor's NoteAccording to the consumer price trends announced by Statistics Korea, while the price of processed foods rose by 4.1% year-on-year in May, the price of bread increased by 6.4%. The bread consumer price index reached 138.48, which is a 38.48% rise over five years compared to the base year of 2020 (100). This increase is steeper than that of tteokbokki or fried chicken, snacks beloved by Koreans. Bread, once a snack enjoyed by everyone, has now become a product that is difficult to choose due to its high price. How did the price of bread in Korea continue to rise so sharply?

Baking scene. Photo by Getty Images Bank

As bread prices rise, demand is surging for frozen raw dough, which can be easily prepared at home, as well as mass-produced bread that can be conveniently purchased at supermarkets and convenience stores. Products that reduce the price burden while enhancing taste and quality have recently gained significant popularity among consumers, especially through word of mouth on social networking services (SNS).

Bread that used to cost 3,000 won at a bakery, now just 2,000 won at home... Demand for frozen raw dough rises

If you search for 'frozen raw dough' on YouTube, you can find various recipe videos using it. YouTube

In the second quarter of this year, sales of frozen raw dough on the e-commerce platform Kurly increased by about 80% compared to the same period last year. This growth rate is even steeper than the 66% increase seen in the first quarter. Frozen raw dough is a product in which flour dough, after fermentation and shaping, is rapidly frozen. After thawing, you only need to put it in an oven or air fryer to enjoy freshly baked bread. Although the cooking method is simple, the taste and texture are not far behind those of bread sold at specialty bakeries, making it easy even for home baking beginners to try. In the past, home baking was considered a labor-intensive hobby due to the complicated processes of kneading and fermentation. However, the spread of air fryers and the popularization of frozen raw dough have significantly lowered the entry barrier.

Price competitiveness is also a factor driving the popularity of frozen raw dough. Salt bread sold at bakeries typically costs around 3,000 won per piece, and at premium bakeries, prices reach 4,000 to 5,000 won. In contrast, frozen salt bread dough sold on online platforms is priced in the low 1,500 to 2,000 won range, which is only about half the price of the finished product. This price advantage comes from the fact that consumers bake the bread themselves, eliminating additional labor costs, and fixed store operating costs are removed, resulting in streamlined processes and distribution efficiency.

Consumer responses on social networking services (SNS) are also positive. The simple cooking method, reasonable price, and versatility for various recipes are all factors contributing to its popularity. In fact, there are about 25,000 posts related to 'frozen raw dough' on Instagram, and content introducing homemade recipes such as 'How to use pastry dough,' 'Making super simple pain au chocolat,' and 'How to make pizza with frozen raw dough' is being uploaded one after another.

Following this trend, the frozen raw dough market is expected to grow even further. Nielsen Korea projected that the market size for frozen raw dough will expand from 41.3 billion won in 2020 to about 1.3 trillion won by 2030. The average annual growth rate is expected to be around 5%, with demand for rational and convenient frozen raw dough expanding in this era of high prices.

'Cheap, tasteless bread' is a thing of the past... Convenience store bread gains popularity amid high prices

Mass-produced bread, easily available at convenience stores, is also attracting consumer attention with its price competitiveness. Mass-produced bread, manufactured in factories and distributed to supermarkets and convenience stores, is inexpensive and highly accessible. While it used to be associated with the image of 'cheap, tasteless bread,' recently, improvements in quality and an increase in collaborative products with well-known brands have changed consumer perceptions.

According to the Fair Trade Commission's 'Bakery Industry Market Analysis and Major Regulatory Competition Impact Assessment' report, domestic sales of mass-produced bread increased from 2.8372 trillion won in 2018 to 3.9589 trillion won in 2022, representing an average annual growth rate of 8.7%. This is higher than the average annual growth rate of total food sales during the same period (6.0%), indicating that the mass-produced bread market has grown at a faster pace. The share of mass-produced bread in total food sales also rose by 0.5 percentage points, from 4.9% in 2018 to 5.4% in 2022.

A citizen is selecting Yonsei Milk Cream Bread at a convenience store. BGF Retail

A representative success story in mass-produced bread sales is the 'Yonsei Milk Cream Bread,' launched by convenience store CU in partnership with Yonsei Milk in 2022. Filled more than halfway with cream, this bread sparked a 'half-cut shot' (photos of bread cut in half) craze on SNS, and surpassed cumulative sales of 50 million units within two years of its launch. The Yonsei Milk Cream Bread series now includes more than 10 varieties, with prices ranging from the high 2,000 won to the low 3,000 won range. CU's bread sales growth rates have remained in the double digits: 51.1% in 2022, 28.3% in 2023, and 33.0% in 2024.