The price of a whole watermelon has topped 20,000 won and continues to soar. Normally, when prices rise, consumption tends to fall, but the opposite is happening at cafes. Sales of beverages made with watermelon have surged. Industry watchers say consumers burdened by the cost of whole watermelons are turning to watermelon juice as a substitute.
According to Korea Agro-Fisheries & Food Trade Corporation (KAMIS) data on the 23rd, the average retail price for one watermelon (standard grade) that day was 24,926 won. That was up 10.12% from the same period a year earlier and 22.63% from the average year. On the previous month, the price of a whole watermelon even exceeded 30,000 won.
The rise in watermelon prices is largely due to demand increasing earlier than usual because of an early heat. As daytime temperatures climbed starting in May, more consumers sought out watermelon, but supply could not keep up because early shipments were concentrated in southern regions. Supply conditions for substitute fruits such as oriental melons, oranges and kiwis were also unfavorable.
Despite high watermelon prices, sales of watermelon beverages at cafes are increasing. MEGA MGC COFFEE sold 2.8 million cups of its three watermelon drinks within 50 days of launch. EDIYA COFFEE's "fresh fruit watermelon juice" ranked No. 2 in total menu sales after the Americano for the week from the 4th to the 10th. In particular, the three fresh fruit beverages, including the fresh fruit watermelon juice, surpassed a cumulative 700,000 cups within three weeks of launch. PAIK'S COFFEE, operated by The Born Korea, launched its signature summer menu "Woori Watermelon Juice" on Apr. 30, 15 days earlier than last year. The product surpassed 1 million cups in annual sales for four consecutive years last year.
Even as watermelon prices have risen, watermelon beverages are selling well because consumers' fruit consumption habits have changed. For single-person households, college students and office workers, buying a whole watermelon itself is a burden. Beyond the price, storage, prep and dealing with leftovers make purchasing a whole one difficult. Moreover, while a whole watermelon costs 20,000–30,000 won, watermelon juice sold at cafes is generally available in the 4,000–7,000 won range. From the consumer's perspective, it is a way to enjoy in-season watermelon flavor at a relatively lower expense.
Office worker Kim Yeo-jin, 34, said, "Even if I want to eat watermelon, as someone living alone, buying a whole one feels burdensome," and added, "I don't have enough space in the refrigerator, and I worry it will get mushy before I finish it, so when I want watermelon, I often drink cafe watermelon juice."
The reason cafes can sell watermelon beverages at relatively low prices lies in their strategy to secure a stable supply of raw fruit. Major cafe franchises coordinate supply volumes with production areas and partner companies before summer begins. Unlike consumers buying watermelons at retail prices in supermarkets, franchises reduce cost burdens through bulk purchases and long-term supply contracts.
In practice, PAIK'S COFFEE sources watermelons produced in major domestic growing regions such as Haman, Uiryeong, Eumseong, Gochang, Bonghwa and Yanggu. It secured its supply chain by pre-coordinating domestic watermelon volumes with partners before peak season. EDIYA COFFEE also coordinates supply schedules and volumes with partners from the planning stage for fresh fruit beverages. Because supply conditions for fresh fruit can vary with climate and harvest, it draws on diverse growing regions and suppliers to reduce store-level supply disruptions.
A representative of a cafe franchise said, "Although the watermelon price consumers feel has risen sharply, franchises operate based on volumes secured in advance," and added, "Because they are relatively less affected by short-term price swings, they can manage supply stably at relatively lower price points."
Lee Eun-hee, a professor of consumer studies at Inha University, said, "Recently, consumers are increasingly inclined to buy only as much fruit as they need," and added, "Especially in a high inflation era, when considering not only price but also storage and disposal expense, 'small-portion consumption' will expand."