“Food prices, including snacks, bread, and coffee, continue to rise. This is due to soaring costs of raw materials such as cocoa and coffee beans, exacerbated by unusual weather patterns and an increase in the won-dollar exchange rate, which have added to the cost burdens of companies.”
“On the 7th, Binggrae announced that starting from March, they will raise the prices of certain coffee, fruit and vegetable drinks, and ice cream products. The price of ACAFÉA Size Up 350ml coffee will increase from 2,400 KRW to 2,600 KRW, and Ttaom 235ml will go from 2,400 KRW to 2,700 KRW. The ice cream Melona will rise from 800 KRW to 1,000 KRW, while Supercone, Samanco, Bravo Cone, and Shimona will go from 1,200 KRW to 1,400 KRW. Binggrae stated, ‘The recent rise in raw material prices and energy costs have intensified cost pressures,’ explaining the reason for the price hikes.”
“Paris Baguette, the leading confectionery company in Korea, also announced on the 7th that it will increase the prices of 96 types of bread, 25 types of cakes, and other products by an average of 5.9% starting on the 10th. This marks the first increase in two years since February 2023. Key items seeing price hikes include Whole Toast from 3,600 KRW to 3,700 KRW, Soboru Bread from 1,500 KRW to 1,600 KRW, and Strawberry Blossom Cake from 19,000 KRW to 19,900 KRW. Paris Baguette cited the ‘unavoidable need to adjust prices due to the rise in raw material costs and various associated expenses.’ Previously, Lotte Wellfood also announced a 9.5% average increase for 26 types of snacks and ice creams starting on the 17th.”
“The rise in raw material prices is highlighted as the reason for the food industry’s price increases. Cocoa, a key ingredient in chocolate, saw prices exceed 12,000 USD per ton last December, affected by abnormal weather and conflicts between governments and farmers in its source regions in West Africa, such as Ghana and Côte d’Ivoire.”
“In addition to cocoa, coffee bean prices have also surged due to decreased production caused by poor harvests in major production areas like Brazil and Vietnam. According to food industry statistics, Arabica beans hit an all-time high of 8,905.48 USD per ton on the New York ICE Futures Exchange on the 6th. Robusta beans also reached an all-time high of 5,734 USD per ton on the 30th of last month and have maintained the 5,600 USD level since.”
“Coffee companies, feeling the pressure from increased coffee bean prices, are also raising their prices consecutively. Starbucks Korea and Hollys Coffee increased the prices of some products by 200-300 KRW from the 24th of last month. The budget coffee brand Compose Coffee will raise the price of Iced Americano from 1,500 KRW to 1,800 KRW starting on the 13th.”