The price of a whole watermelon has topped 20,000 won and is soaring. Generally, when prices rise, consumption tends to fall, but the opposite is happening at cafes. Sales of drinks made with watermelon have surged. The industry says consumers, burdened by the cost of buying whole watermelons, are turning to watermelon juice as a substitute.
According to the Korea Agricultural Marketing Information Service (KAMIS) on the 23rd, the average retail price for one whole 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 22nd, the price of a whole watermelon even exceeded 30,000 won.
The rise in watermelon prices is largely due to demand increasing faster than usual because of an early heat wave. As daytime temperatures climbed from May, more consumers looked for watermelon, but supply could not keep up because early shipments were concentrated in southern regions. Supply conditions for substitute fruits such as Korean melon, oranges, and kiwifruit were not favorable either.
Despite high watermelon prices, sales of watermelon drinks at cafes are increasing. MEGA MGC COFFEE sold 2.8 million cups of its three watermelon drinks in the 50 days since launch. EDIYA COFFEE's "fresh fruit watermelon juice" ranked second in total menu sales after Americano during the week from the 4th to the 10th. In particular, the three fresh fruit drinks, including fresh fruit watermelon juice, surpassed a cumulative 700,000 cups within three weeks of launch. PAIK'S COFFEE, operated by The Born Korea, released its signature summer menu "Our Watermelon Juice" starting 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 drinks 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, prepping, and handling leftovers make purchasing a whole fruit difficult. Moreover, while buying a whole watermelon costs 20,000 to 30,000 won, watermelon juice sold at cafes generally costs in the 4,000 to 7,000 won range. From the consumer's perspective, it is a way to enjoy seasonal 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 is burdensome," and added, "There's not enough space in the fridge, and I worry it will turn mushy before I finish it, so when I crave watermelon, I often drink watermelon juice at a cafe."
The reason cafes can sell watermelon drinks at relatively low prices is their strategy for securing a stable supply of raw fruit. Major cafe franchises coordinate supply volumes with producing areas and partner companies even before summer starts. Unlike consumers who buy watermelons at retail prices in supermarkets, franchises reduce cost pressure through bulk purchases and long-term supply contracts.
In fact, PAIK'S COFFEE sources watermelons produced in major domestic growing regions such as Haman, Uiryeong, Eumseong, Gochang, Bonghwa, and Yanggu. It secured the supply chain by discussing volumes of domestic watermelons with partners ahead of peak season. EDIYA COFFEE also coordinates schedules and volumes with partner companies from the planning stage of its fresh fruit drinks. Because the supply of fresh fruit can vary with weather and harvest conditions, it uses diverse production areas and suppliers to minimize store supply disruptions.
A representative of a cafe franchise said, "While 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 fluctuations, they can manage stable supplies at relatively lower price points."
Lee Eun-hee, a professor of consumer studies at Inha University, said, "Recently, consumers increasingly try to buy only as much fruit as they need," and added, "Especially in an era of high inflation, when considering not only price but also storage and disposal expense, 'small-portion consumption' will expand."