Korean ice cream exports are projected to exceed $100 million (approximately 137.5 billion won) for the first time this year, with Binggrae's export growth rate standing out. However, there are variables such as the impact of tariffs imposed by the United States in the second half of the year.
According to the Ministry of Agriculture, Food and Rural Affairs on the 27th, the ice cream export amount in the first half of this year was $65.5 million (approximately 90.3 billion won), an increase of 23% compared to the same period last year. During the same period, the export amount of ice cream products reported by the Korea Customs Service was also approximately $68.14 million (about 93.7 billion won), which is a 17% increase compared to last year's export amount of $55.91 million. The ice cream products reported by the Korea Customs Service include ice cream, edible ice, and ice cream mix products (which are processed products that have food additives added to milk dairy products and are sterilized, dried, and powdered).
The industry views that regardless of the criteria used, ice cream export performance is expected to reach an all-time high. This year, exceeding $100 million in exports is seen as a strong possibility.
The company leading domestic ice cream exports is Binggrae. Since 2021, Binggrae's export growth rate has consistently surpassed the overall rate of increase. In 2021, the overall export growth rate for ice cream products was 18.7%, while Binggrae's export growth rate was 20.9%. In 2022, the overall export growth rate was 10.0%, but Binggrae recorded an export growth rate of 18.4%. This trend continued through the second quarter of this year. As of the second quarter of this year, the export growth rate for ice cream products was 35.5% year-on-year, while Binggrae achieved 45.3%.
Binggrae is exporting a total of 380 million ice creams to over 60 countries worldwide. The representative product is 'Melona', but popular products vary slightly by region. In Vietnam, 'Bungeoppang Samanco' is particularly popular.
The success factors include localizing taste, texture, and ingredients. The name is Melona, but flavors are expanding to include mango-flavored Melona, banana-flavored Melona, and taro-flavored Melona to suit local markets. While it started with the melon-inspired Melona, it is a strategy to expand the 'Melona' brand.
The proactive establishment of distribution networks has also been effective. In the United States, Binggrae has entered large retail channels such as Costco and Safeway. In the Netherlands, Germany, and the United Kingdom, it has broadened its contacts with local consumers by entering Asian markets and mainstream distribution channels.
However, securities firms do not classify Binggrae as a leading export stock in the food sector. This is due to the small proportion of exports in its total sales. As of last year, the export proportion of Binggrae's sales was about 12.2%. Although this figure has steadily risen from the 9% range in the past, considering the export proportion of Samyang Foods, known for its 'Buldak Bokkeumyeon' (spicy chicken noodles), which is at 70%, it is evaluated that there is still a long way to go.
The fact that the region with the highest export growth rate for ice cream products is the United States is also a variable. There is significant uncertainty regarding the imposition of tariffs in the second half of the year. However, since the export amount from the United States accounts for about 5% of Binggrae's total sales, it is observed that even if tariff issues arise, the impact will not be significant due to the presence of local production facilities.
Park Chan-sol, an analyst at SK Securities, noted, 'Exports to Canada, China, Taiwan, Hong Kong, and Southeast Asia are increasing, so even if tariffs are implemented, the impact will be minimal if exports to other countries continue.'