As sales of ice cream increase due to the heat wave and tropical nights, the related industry is enjoying a "summer special". However, recently, ice creams with high cocoa content, such as "Encho (Binggrae)" and "Tico (LOTTE Wellfood)", are not readily visible in discount stores and supermarkets.
According to the related industry on the 7th, sales of ice cream in retail and ice cream companies are increasing. Last month, Emart's ice cream sales increased by 40% compared to the previous month. During the same period, LOTTE Wellfood's related sales also increased by 20%. Convenience store CU's related sales increased by 33.1%. Sales in the manufacturing companies Binggrae and LOTTE Wellfood also increased by 30% each.
Compared to a year ago, ice cream sales are also on the rise. Last month, Emart's ice cream sales increased by 57% year-on-year. During the same period, convenience store GS25's related sales increased by 55%. LOTTE Wellfood's sales also increased by 25%.
Despite the number of consumers seeking ice cream in the heat, chocolate ice cream seems to be relatively difficult to find. A person surnamed Choi (62), who operates an ice cream discount store in Seo-dae-mun-gu, Seoul, said, "Three to four people ask me each day if we have Encho or Tico." The cocoa content of Encho and Tico (based on dark chocolate) is 34% (about 28.9g) and 28% (about 11.9g), respectively. Considering that the average cocoa content of commercially available chocolate ice creams is in the 5% to 10% range, these percentages are relatively high.
The reason chocolate ice cream products, including Encho and Tico, are not visible is due to the sharp rise in materials and supplies costs. A food industry related party noted, "With high cocoa content products, we can't make a profit as sales continue," adding, "We are increasing the production of fruit and ice-based desserts while adjusting the production and shipment of relatively high cocoa content products."
According to Food Industry Statistics (FIS), the international trading price of Kakao beans was $8,363 per ton (about 11.58 million won) the day before. Two years ago, it was traded at about $3,000 (about 416,000 won) per ton, but this year it has been fluctuating between $8,000 and $12,000. This is due to decreased production caused by abnormal climate conditions. From the perspective of chocolate ice cream manufacturers, production costs have skyrocketed.
Sixty percent of the world's Kakao is produced in the Kakao trees of Côte d'Ivoire and Ghana in West Africa. In 2023, severe drought occurred in West Africa, causing Kakao trees to burn or wither. Last year, floods from heavy rains submerged Kakao trees or caused them to become sick, severely reducing Kakao production. However, global demand for Kakao has not decreased, causing prices to rise more than double.
Additionally, due to the recent heat wave, the production of milk has also decreased as dairy cows become exhausted. The most commonly raised dairy cow in Korea is the Holstein breed. This breed does not eat well in high temperature environments above 27 degrees Celsius, which leads to a decrease in milk production. If the heat continues above 32 degrees, production can decrease by up to 20%.
Since milk is also an ingredient in chocolate ice cream, the related industry is closely monitoring the situation. A representative of the milk industry stated, "An average of 1,900 tons of milk should be produced daily, but due to the ongoing heat wave, it has decreased by about 100 tons."
A representative of the food industry noted, "The supply of milk for ice cream has decreased by up to 5%," adding, "We are strengthening monitoring to ensure there are no issues with production by checking stock in advance."
Eun-hee Lee, a professor in the Department of Consumer Studies at Inha University, said, "If prices rise due to issues with the harvest of imported materials and supplies like Kakao caused by abnormal climate, production costs immediately increase," adding, "One approach is for food companies to focus on research and development (R&D) to find alternatives that deliver similar taste."