(Source: Inside Retail Asia | 9 November 2016)
The booming networks of Korean cafes has driven a huge rise in the country’s dessert market.
According to data issued by the government, the sector expanded sales by 13.9 per cent in 2014 from a year earlier – the last year for which figures are available – on rising demand for sweets and non-alcoholic drinks.
The combined value of the local confectionery and non-alcoholic beverages markets stood at 8.9 trillion won (US$7.9 billion) in 2014, up 13.9 per cent from a year earlier, according to the available data compiled by the Ministry of Agriculture, Food and Rural Affairs.
The dessert market accounted for 10.7 per cent of the country’s entire food service market worth 83.8 trillion won in 2014.
The ministry said demand for high-end bakeries and cafes led the sharp growth in the dessert market as people tend to spend their time and money more on their health and well-being.
The confectionery industry posted sales of 4.6 trillion won in 2014, up 10.5 per cent on-year, while sales of the beverage market jumped 16.8 per cent on-year to 4.3 trillion won.
In particular, coffee shops saw their sales rise 25 per cent on-year to 2.5 trillion won in 2014, taking up 47 per cent of the country’s coffee market including instant coffee packets and drinks.