2024-04-19 09:46:26
Preference for Korean seaweed is increasing overseas.
Raw price jumps 5 times in one year
Prices soar threefold due to poor cacao harvest
12% increase on 17 types of Lotte chocolate products
The price of seasoned seaweed, a popular side dish for rice, has begun to rise. As demand for seaweed increased, raw prices soared, and three mid-sized companies ranked in the top five in market share for seasoned seaweed began to raise prices. As the international price of cacao continues to hit record highs day after day, chocolate manufacturers have also raised the prices of related products. Food companies that had been reluctant to raise prices appear to be raising prices one after another now that the general election is over.
According to the food industry on the 18th, seasoned seaweed specialty companies Seongseong Food, Gwangcheon Seaweed, and Daecheon Seaweed recently raised the prices of their products. Seongkyung Foods raised the prices of seaweed products by an average of about 10% in some distribution channels, including supermarkets, on the 1st, and plans to raise prices to the same level in large supermarkets and online stores such as Coupang next month. On the same day, Gwangcheon Kim also increased the prices of most items by 15 to 20 percent. Daecheon Seaweed has raised the prices of some products, including seaweed powder, by about 20% since last month.
They are in the position that they have no choice but to raise product prices due to the sharp rise in the price of raw seaweed (seaweed before processing), the raw material for seasoned seaweed. According to the Korea Agro-Fisheries and Food Trade Corporation (aT) on this day, the wholesale price of dried seaweed was 10,440 won per bunch (100 sheets), a sharp increase of more than 57% from a year ago (6,618 won).
The main reason for the rise in seaweed prices is that demand for Korean seaweed has increased as preference for Korean seaweed increases in overseas markets. According to the Ministry of Oceans and Fisheries, as the popularity of Korean seaweed continues due to the recent ‘Korean-style gimbap’ craze overseas, seaweed exports last year exceeded KRW 1 trillion, reaching USD 791 million (about KRW 1.0593 trillion). This figure has grown seven-fold in 13 years since exceeding $100 million for the first time in 2010.
An official from a seasoned seaweed manufacturer said, “Until the beginning of last year, the original price per 120kg bag was 70,000 won, but since the beginning of this year, it has risen five times to 350,000 won.” “It more than doubled, and as raw material prices soared, we couldn’t hold on without reflecting it in the sales price,” he explained.
In the food industry, as the burden of raw material prices has increased, large corporations such as Dongwon F&B and CJ CheilJedang are expected to raise seaweed prices soon. An industry insider said, “As the burden of manufacturing costs has risen to the level of our nose, a price increase is inevitable,” and added, “We are internally considering the timing and extent of the increase.”
As the price of cacao continues to soar day after day, chocolate products also participate in the price increase. On this day, Lotte Well Foods announced that it would increase the prices of 17 types of chocolate, dry and frozen confectionery products made from cocoa by an average of 12% starting next month. With this increase, the consumer price of Gana Mild (34g), a representative product, increased by 200 won (17%) from 1,200 won to 1,400 won, and Pepero (54g) and Kancho (54g) were increased by 100 won, to 1,800 won (6%↑) and 1,300 won, respectively. It is sold for won (8%↑).
The reason behind the chocolate price increase is that the cocoa crop was sluggish due to the abnormal climate in West Africa, leading to a sharp decline in the supply of raw materials. According to aT’s food industry statistics, the international price of cacao, a chocolate raw material, reached an all-time high of $11,001 per ton as of the 15th. Compared to a year ago when it was in the $3,000 range per ton, it has soared three times.
A Lotte Well Food official said, “It was inevitable to increase prices as processing costs, including labor costs, had also increased,” and added, “We will do our best to maintain product quality while preparing for long-term supply and demand instability.”
Reporter Song Jin-ho [email protected]
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2024-04-19 09:46:26