Inflation, population woes could melt South Korea’s ice cream market

The market is projected to decline by 5.8% annually until 2026. 

The faster increase in prices and contracting population size in South Korea threaten its ice cream market, which is projected to register a 5.8% compound annual growth rate until 2026. 

This is equivalent to a $929.9m decline by 2026, GlobalData reported. 

“Consumers stocked up their refrigerators with large bulk ice cream packs to indulge themselves during the protracted COVID-19 lockdowns and quarantines in 2020,” Suneera Joseph, Consumer Analyst at GlobalData, said.

“Manufacturers also rolled out discounts and special offers to boost volumes at the cost of value sales. However, this stockpiling behavior dissipated in 2021 and 2022 as the COVID-19 restrictions on public outdoor movement were relaxed.”

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Moreover, GlobalData noted the shrinking and rapidly aging population has led to the per capita expenditure (PCE) on ice cream in South Korea decreasing to $11.8 in 2021 from $12.6 in 2016. South Korea’s PCE on ice creams will further decline to $8.9 by 2026.

This however higher than the regional average PCE of $2.7 and the global average of $5.4.