Chocolate Market Overview in South Korea

In 2019, the South Korean chocolate market decreased by -% to $, falling for the third year in a row after ten years of growth. Overall, the total consumption indicated tangible growth from 2007 to 2019: its value increased at an average annual rate of +% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, consumption decreased by -% against 2016 indices. The pace of growth appeared the most rapid in 2010 when the market value increased by % against the previous year. Over the period under review, the market reached the peak level at $ in 2016; however, from 2017 to 2019, consumption remained at a lower figure.

In value terms, chocolate production declined notably to $ in 2019 estimated in export prices. In general, the total production indicated a tangible expansion from 2007 to 2019: its value increased at an average annual rate of +% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, production decreased by -% against 2015 indices. The pace of growth was the most pronounced in 2010 when the production volume increased by % y-o-y. Over the period under review, production attained the peak level at $ in 2015; however, from 2016 to 2019, production failed to regain the momentum.

In 2019, consumption of chocolate and cocoa products decreased by -% to tonnes, falling for the fourth consecutive year after nine years of growth. The total consumption volume increased at an average annual rate of +% from 2007 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2015 with an increase of % against the previous year. As a result, consumption reached the peak volume of tonnes. From 2016 to 2019, the growth of the consumption remained at a lower figure.

The size of the chocolate market in South Korea contracted significantly to $ in 2019, which is down by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, the total consumption indicated a notable increase from 2007 to 2019: its value increased at an average annual rate of +% over the last twelve-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, consumption decreased by -% against 2016 indices. The growth pace was the most rapid in 2010 with an increase of % against the previous year. Over the period under review, the market reached the maximum level at $ in 2016; however, from 2017 to 2019, consumption remained at a lower figure.

Driven by increasing demand for chocolate in South Korea, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +% for the period from 2019 to , which is projected to bring the market volume to tonnes by the end of .

In 2019, the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review.

South Korea remains a net importer of chocolate; in physical and value terms, imports consistently exceeded exports from 2007 to 2019. In 2019, there was a significant trade deficit of tonnes, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.