Chocolate Market Analysis South Korea - Size and Forecast 2024-2028

South Korea Chocolate Market Size 2024-2028

The South Korea chocolate market size is forecast to increase by USD 155.52 million at a CAGR of 4.39% between 2023 and 2028.

• The market is experiencing significant growth, driven by various trends and factors. One key trend is the increasing focus on health benefits, with consumers seeking chocolate that contains vital minerals such as zinc, magnesium, phosphorus, copper, and iron. This demand is fueled by the recognition of chocolate's potential role in addressing health issues like heart disease and mental illnesses, including depression, anxiety, and stress. Another trend is the rise of premiumization, with consumers willing to pay more for high-quality chocolate products. Milk chocolate and white chocolate continue to be popular choices, while cocoa powder is also gaining traction as a versatile ingredient. However, the market is also facing challenges, including growing health concerns related to sugar content and the increasing demand for plant-based and vegan chocolate options. To stay competitive, companies must innovate and adapt to these changing consumer preferences and trends.

What will be the size of the market during the forecast period?

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• Dark chocolate, a popular confectionery item, has gained considerable attention in South Korea for its potential health benefits. The global population's increasing focus on preventive healthcare and the desire for mood enhancement has contributed to the rising demand for this indulgent treat. Dark chocolate is known to contain essential minerals such as magnesium, zinc, and selenium, which contribute to improved heart health. This trend can be attributed to the growing awareness of the health benefits of dark chocolate and the increasing preference for vegan, organic, and gluten-free options. The distribution channels for dark chocolate in South Korea include online platforms and traditional retail outlets such as supermarkets and hypermarkets.
• The health benefits of dark chocolate extend beyond cardiovascular health. Consuming dark chocolate can help regulate stress hormones like cortisol. The serotonin and endorphins present in dark chocolate can help alleviate feelings of stress and improve mood. Dark chocolate consumption has also been linked to the prevention and management of certain health conditions. For instance, it can help prevent depression and anxiety, as per various studies. Moreover, it can help address calcium deficiency and caffeine intolerance, making it an attractive option for vegan and organic consumers. The market has been witnessing significant growth, with consumers increasingly preferring this indulgent treat over milk chocolate and carob confectionery. With continued innovation and consumer education, the demand for dark chocolate in South Korea is expected to remain strong.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Product
  • Dark chocolate
  • Milk/white chocolate
• Distribution Channel
  • Offline
  • Online
• Product Type
  • Molded chocolate
  • Softlines/selflines
  • Boxed assortments
  • Seasonal chocolates
  • Others
• Geography
  • South Korea

By Product Insights

• The dark chocolate segment is estimated to witness significant growth during the forecast period.

The milk chocolate segment holds a significant share due to its widespread popularity among consumers. Milk chocolate is made with milk powder, sugar, and cocoa solids, resulting in a milder flavor profile and creamier texture compared to dark chocolate. Milk chocolate bars are a favorite among consumers, offering a delightful taste and enjoyable experience. However, the demand for dark chocolate is on the rise in South Korea, driven by its potential health benefits and unique flavor profile. Dark chocolate is produced by fermenting, roasting, and grinding cocoa beans to create cocoa mass, which is then combined with cocoa butter and a minimal amount of sugar.

Furthermore, the higher percentage of cocoa solids in dark chocolate contributes to its rich, complex flavor and antioxidant properties. Dark chocolate truffles and liquid chocolate are also gaining traction in the South Korean market, catering to consumers seeking a more intense chocolate experience. The growing awareness of the potential health benefits associated with dark chocolate, such as improved heart health and antioxidant properties, has contributed to its increasing popularity. As consumers continue to explore the world of chocolate, the demand for dark chocolate is expected to remain strong in South Korea. In conclusion, the market is diverse, with both milk and dark chocolate catering to different consumer preferences.

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The dark chocolate segment was valued at USD 372.19 million in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of the South Korean chocolate Market?

Increasing collaboration with celebrities and influencers is the key driver of the market.

• The South Korean chocolate market is experiencing growth due in part to celebrity and influencer endorsements. This trend is driven by the significant nature of South Korea's celebrity culture and the widespread reach of social media. Chocolate brands are capitalizing on this trend by collaborating with celebrities and influencers for advertising campaigns, product endorsements, event appearances, and social media promotions. These partnerships help brands tap into the celebrity's large following and amplify their marketing efforts. For instance, a renowned K-pop idol endorsing a premium chocolate brand or a popular actor promoting a new chocolate product generates excitement, boosts brand visibility, and creates a buzz in the competitive market.

• Moreover, consumers in South Korea are increasingly seeking chocolate varieties that offer health benefits, such as dark chocolate, which is rich in antioxidants. Other trends include the demand for calcium-rich chocolate to address calcium deficiency, as well as vegan, organic, and gluten-free options. Online distribution channels, including e-commerce platforms supermarkets, and hypermarkets, are also contributing to the growth of the South Korean chocolate market. In summary, the South Korean chocolate market is thriving due to celebrity and influencer endorsements, the growing demand for healthier chocolate options, and the increasing popularity of online distribution channels. Brands are leveraging these trends to connect with consumers more authentically and engagingly, while consumers are benefiting from a wider range of chocolate choices that cater to their health and lifestyle preferences.

What are the market trends shaping the South Korea Chocolate Market?

Increasing demand for plant-based and vegan chocolate is the upcoming trend in the market.

• In South Korea, the chocolate market is witnessing significant growth due to increasing consumer preference for chocolate as a source of vital minerals such as zinc, magnesium, phosphorus, copper, and iron. This trend aligns with health-conscious consumer behavior, particularly among millennials, who are seeking alternatives to dairy products due to health, environmental, and ethical concerns. In response, chocolate manufacturers in South Korea are introducing a variety of plant-based and vegan chocolate products, including dark chocolates, chocolate bars, truffles, and bonbons.

• Leveraging its global research and development expertise, Nestle is introducing these innovative products in South Korea, Taiwan, and Singapore. The health benefits associated with chocolate, including its ability to help prevent heart disease and improve mood by alleviating symptoms of depression, mental illnesses, anxiety, and stress, are driving demand for premium chocolate products. Both milk chocolate and white chocolate varieties are gaining popularity, with consumers seeking out high-quality cocoa powder as a key ingredient. In summary, the South Korean chocolate market is experiencing growth due to increasing consumer awareness and preference for chocolate as a source of essential minerals and as a healthier alternative to dairy products.

What challenges does South Korea Chocolate Market face during the growth?

Growing health concerns about diabetes and obesity is a key challenge affecting the market growth.

• The market has witnessed a slight decline due to growing health concerns. Consumers are increasingly aware of the potential health risks associated with regular chocolate consumption, such as dental health issues and the development of conditions like type 2 diabetes. Chocolate contains high amounts of sugars and refined carbohydrates, which can lead to elevated blood sugar levels and insulin resistance over time. Additionally, the dental health risks of chocolate are well-documented, as high sugar intake is linked to tooth decay. However, innovation in the chocolate industry continues to drive growth, with a focus on single-origin chocolates and healthier options.

• Dark chocolate, for instance, contains antioxidants and serotonin, which can improve brain function and promote feelings of happiness. These benefits have led some to consider chocolate as a potential natural antidepressant and alternative to medication. Moreover, chocolate's positive impact on blood circulation and blood pressure makes it an attractive option for those seeking to maintain a healthy mind and body. As consumers become more educated about the potential benefits of chocolate, sales are expected to rebound. Companies are responding to this trend by introducing new and innovative chocolate products that cater to health-conscious consumers while still delivering the delicious taste and satisfaction that chocolate is known for.

Exclusive South Korea Chocolate Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• CACAODADA Kakao
• Crown Confectionery Co. Ltd
• Lotte Corp.
• Mars Inc.
• Nestle SA
• Orion Corp.
• Perfetti Van Melle Group BV
• Rocky Mountain Chocolate Factory Inc.
• The Hershey Co.
• Ferrero International S.A.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

South Korea's chocolate market is witnessing significant growth due to the increasing awareness of the health benefits associated with dark chocolate consumption. Dark chocolate, rich in cocoa solids, is known to release serotonin and endorphins, which improve mood and help prevent depression and stress. According to the World Population Review, South Korea's population is projected to reach 51 million by 2030, driving the demand for chocolate. Dark chocolate is also known to improve blood circulation and heart health, reducing the risk of heart disease. The Cleveland Clinic reports that dark chocolate can help lower cortisol levels, a stress hormone, making it an attractive option for those seeking preventive healthcare.

Furthermore, the market is witnessing innovation, with consumers showing a preference for premium, single-origin, vegan, organic, and gluten-free options. The milk chocolate segment, however, continues to dominate the market, with consumers enjoying its taste and convenience. The distribution channels for chocolate in South Korea include supermarkets and hypermarkets, online distribution channels, and food manufacturing businesses. The convenience of individual packaging and various flavors, textures, and taste profiles cater to diverse consumer preferences. Chocolate sales in South Korea are expected to grow, driven by the health benefits associated with chocolate consumption and the growing trend of mindful eating. Chocolate is not just a treat but a source of vital minerals like zinc, magnesium, phosphorus, copper, and iron, making it an essential part of a regular diet. The market is a dynamic and evolving industry, with producers constantly innovating to cater to changing consumer preferences and health concerns. The infrastructure, staff, and machinery required for high-volume production are essential components of the chocolate manufacturing process.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across South Korea
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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