Even with the ongoing heat wave, the ice cream industry is focusing on changing its business structure rather than relying only on the "summer boom." As Korea's market enters a structurally low-growth phase due to low birthrates and sluggish domestic demand, a "two-track strategy" is taking hold: boosting profitability with premium and low-sugar products at home, while increasing sales through local production and exports abroad.
According to the food industry on the 4th, ice cream sales have been recovering as the recent heat wave continues. With the heat arriving earlier than usual in May–June this year, ice cream sales are estimated to have risen about 10% from a year earlier. An industry official said, "Hotter weather is positive for ice cream sales, but a prolonged monsoon dampens demand," adding, "We view the recent heat wave positively."
Still, it is difficult to reverse a shrunken market with weather effects alone. According to retail POS statistics from Food Industry Statistics Information (FIS), last year's domestic ice cream retail market sales fell 2.8% from a year earlier. What stands out is the pattern of decline. Long-running domestic brands such as Together (-13.1%), Melona (-9%), Bbungppare (-2.25%), and Bungeo Samanco (-1.4%) all retreated, while premium ice cream Häagen-Dazs rose 21.2%. As the market shrank, consumption shifted to higher-priced products. An industry official said, "Ice cream has a high share of younger consumers, so it is heavily affected by low birthrates," adding, "The era when heat alone lifted sales is over."
Against this backdrop, companies are focusing on securing profitability over sales volume in Korea. Rather than pinning hopes on a single new product, they are elevating the value of well-known long-running brands to raise average ticket size. Binggrae is expanding low-sugar products based on Melona and Bungeo Samanco, and after merging with Haitai Ice Cream Co., it is also pushing organizational integration and work efficiency. Lotte Wellfood is premiumizing or extending long-running brands into new categories, including World Cone Premium, Pig Bar Bread, and Seolleim Coolish. It is also growing its wellness lineup, such as zero and low-sugar ice cream.
◇ Binggrae targets exports, Lotte Wellfood scales local production
Abroad, the priority is expanding sales volume. The approaches of the two companies diverge. Binggrae is putting weight on market expansion through exports. Led by Melona and Bungeo Samanco, it is increasing shipments to the United States, China, and Vietnam, and it established an Australian subsidiary late last year to target Oceania. In Europe, it is tapping the Netherlands, Germany, the United Kingdom, and France with plant-based Melona. A Binggrae official said the company "plans to strengthen global competitiveness by expanding new overseas markets and key distribution channels and by continuously growing a product lineup that reflects local consumer preferences."
Lotte Wellfood, in addition to exports, is expanding local production bases. Centered on its India subsidiary Lotte India, it produces and sells World Cone, Pig Bar, Jaws Bar, and Watermelon Bar locally. Because products are not shipped from Korea, logistics costs are lower and responses to local markets are faster. Ice cream sales in India rose from 58.7 billion won in 2020 to 196.6 billion won last year, more than tripling in five years. In the first half of this year, buoyed by the new Pune plant coming online, sales increased 29% from a year earlier.
Export performance is also rising. Lotte Wellfood's ice cream exports, which are produced domestically and shipped overseas, increased from 23.2 billion won in 2023 to 29.1 billion won last year. During the same period, Binggrae's exports of ice cream and other items rose from 68.8 billion won to 99.4 billion won. Because local production is not reflected in export values, the actual scale of overseas business is larger than the export figures, the industry says.
The structure in which overseas markets offset stagnation at home is becoming more pronounced. Unlike ramen or kimchi, ice cream requires no cooking and can be purchased immediately at local convenience stores and big-box retailers, which supports expansion. A Lotte Wellfood official said, "Korean ice cream, with its diverse flavors and formats, tends to get a good response from overseas consumers, and interest in K-culture also has a positive effect." Still, building cold chains, expanding local production, and developing products tailored to preferences in each country remain challenges.