As the year-end dessert peak season arrives, desserts with strawberries, a winter seasonal fruit, are gaining popularity. Bakeries and cafes are rolling out a variety of new products and running promotions. But with strawberry prices trending higher recently, there are concerns that the burden on the industry and consumers could grow.
According to related industries on the 31st, strawberry prices fell in the middle of the month but rose again toward the end of the month. According to the Korea Agro-Fisheries & Food Trade Corporation (aT) Korea Agricultural Marketing Information Service (KAMIS), the retail price of strawberries as of the 29th was 2,789 won per 100 grams. That is lower than 2,987 won on the 1st at the start of the month, but up 15.8% from 2,409 won a week earlier. The wholesale price as of the 29th was 44,434 won per 2 kilograms, up 15.3% from 38,549 won in mid-December.
In recent years, strawberries have moved beyond a simple seasonal fruit to become a key ingredient in the dessert industry. A range of strawberry cakes have been released for the year-end, including Shinsegae Food's "whipped cream cake collapsed by strawberries," Paris Baguette's "Berry Night" series, and Starbucks' "strawberry moist chocolate whipped cream cake." On the 23rd, when Sungsimdang, a famous bakery in Daejeon, began on-site sales of its winter limited product "Strawberry Siroo," long lines formed around Jungangno Station in Daejeon, causing heavy congestion.
Some analysis says strawberry prices were affected by stronger year-end demand for strawberry desserts. On the 22nd, a Korea Agricultural Marketing Information Service transaction trends investigator in Seoul said, "Ahead of Christmas, strawberry prices rose across the board due to increased demand, and the price of mid-grade strawberries used for cake decoration is similar to that of top-grade product."
Some cafes and hotels raised strawberry dessert prices this year. Sulbing increased prices of its seasonal menu items "Fresh Strawberry Sulbing" and "Pure Yogurt Fresh Strawberry Sulbing" by 400 won each. Banyan Tree set the adult price for the Granum Dining Lounge's Very Very Berry dessert strawberry buffet at 135,000 won, up 28.6% from last year's 105,000 won. Shilla Hotel priced its winter strawberry bingsu at 102,000 won this year, up 4.1% from last year.
Unlike hotels, which feel relatively less pressure about price hikes, cafes and bakeries say raising prices first would hurt them. A bakery industry official said, "Even a small increase in dessert prices is strongly felt by consumers. If we raise prices first, the hit is unavoidable," adding, "It will be difficult to raise strawberry dessert prices for the time being."
A coffee franchise industry official said, "Raw fruits like strawberries have high price volatility depending on growing-area conditions and supply. Rather than immediately reflecting such fluctuations in consumer prices, we diversify our supply chain around major growing areas and operate flexibly in line with supply and demand conditions."
While strawberry desserts are popular, there are also concerns that inflation is increasing the burden on consumers. A person surnamed Park (29), an office worker, said, "Prices for whole strawberry cakes at neighborhood independent cafes have gone up, so I'm hesitating to buy one," adding, "I was surprised to see how expensive strawberries were at the supermarket, and I'm worried cake prices will rise along with them."