Cocoa-free sugar confectionery market in South Korea

Earlier Report Observations

In 2018, antitrust authorities uncovered a four-year price-fixing cartel among three major sugar manufacturers, which had kept input costs high for confectionery producers. The following year, the market faced stagnation as the core consumer base shrank and the economy slowed, leading to a drop in volume to 17 323 t. Companies responded by launching smaller, value-packed products targeting millennials, with Orion standing out for its sales growth. The COVID-19 pandemic in 2020 shifted consumption patterns, reducing demand for gum and some traditional sweets but boosting convenient and healthier options, which helped market volume recover slightly to 18 356 t.

From 2021, health and wellness trends accelerated. The growth of online food sales and rising demand for low-sugar or sugar-free products spurred the market, pushing volume up by 21% to 22 228 t. The zero-sugar segment exploded in 2022, with major players like Lotte Wellfood and Paldo launching sugar-free confectionery, driving a 47% increase in market volume to 32 585 t. Industry efforts to train specialized personnel in functional foods also supported this shift.

In 2023, the government's K-Food+ export strategy promoted processed foods including confectionery to global markets, while consumer preferences shifted toward premium, low-sugar, and small-portion products. The home-drinking trend also sustained snack demand. Market volume surged 60% to 52 270 t. By 2024, tighter sugar-free labeling standards from the Ministry of Food and Drug Safety further stimulated the zero-sugar category, and ongoing antitrust scrutiny of sugar suppliers aimed to ensure fair input pricing. The overall confectionery market reached USD 3.8 billion, with online distribution and export initiatives continuing to expand.

Production cocoa-free sugar confectionery in South Korea

In kind, 2017-2020, t

Top producers of cocoa-free sugar confectionery, 2017-2020

World map of production of cocoa-free sugar confectionery, 2017-2020

South Korea's production of cocoa-free sugar confectionery has declined for the second year in a row. In 2020, the country produced 30 907 tonnes, which represents a 9.8% decrease compared to the previous year. Looking at the period from 2017 to 2020, overall production fell by 5.4%, with an average annual decline of 1.8%. The peak production occurred in 2018, reaching 35 100 tonnes, which also saw the largest annual increase of 7.4%.

Annual dynamics of production in South Korea in kind, 2017-2020, t

In value, 2017-2020, K $ US

In 2020, the value of cocoa-free sugar confectionery production in South Korea was 64 071 thousand US dollars, showing minimal change from the previous year. Over the 2017-2020 period, production value increased by 3.2%, translating to an average annual growth rate of 1.0%. The highest value was recorded in 2019 at 64 085 thousand US dollars, while the largest annual increase of 2.7% occurred in 2018.

Annual dynamics of production in South Korea in value, 2017-2020, K $ US

Exports cocoa-free sugar confectionery from South Korea

Exports in kind, t

South Korea's exports of cocoa-free sugar confectionery reached 55 933 tonnes in 2020, marking a significant decline of 11.5% compared to the previous year. From 2017 to 2020, exports decreased by 14.6%, with an average annual reduction of 5.1%. The only increase during this period was a modest 1.1% rise in 2019.

Annual dynamics of product's exports from South Korea in kind, 2017-2020, t

Between 2017 and 2020, Japan remained the dominant buyer of cocoa-free sugar confectionery from South Korea, accounting for 89.3% of total exports by volume. The remaining exports were distributed among numerous other countries.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from South Korea in kind, 2017-2020

Exports in value, M $ US

In 2020, South Korea's cocoa-free sugar confectionery exports were valued at 116.0 million US dollars, reflecting a 1.9% decrease from the previous year. Over the 2017-2020 period, export value declined by 6.9%, with an average annual drop of 2.3%. The lowest value was recorded in 2018 at 113.6 million US dollars, which also experienced the largest annual decline of 8.8%. In contrast, 2019 saw the only increase during this period, with a 4.1% rise.

Annual dynamics of product's exports from South Korea in value, 2017-2020, M $ US

From 2017 to 2020, Japan, China, and Vietnam were the principal buyers of cocoa-free sugar confectionery from South Korea in value terms. Japan accounted for 63.2% of export value, China for 13.6%, and Vietnam for 5.9%. Together, these three countries represented 82.6% of South Korea's total export value for this product.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from South Korea in value, 2017-2020

Imports cocoa-free sugar confectionery to South Korea

Imports in kind, t

South Korea's imports of cocoa-free sugar confectionery have declined for the second consecutive year. In 2020, imports totaled 43 382 tonnes, representing a moderate decrease of 6.2% compared to the previous year. Over the 2017-2020 period, imports fell by 5.1%, with an average annual decline of 1.7%. The peak import volume occurred in 2018 at 47 071 tonnes, which also saw the largest annual increase of 3.0%.

Annual dynamics of product's imports to South Korea in kind, 2017-2020, t

Throughout 2017-2020, China, Germany, and Asia (not elsewhere specified) were the key sources for South Korea's cocoa-free sugar confectionery imports by volume. China accounted for 23.2% of imports, Germany for 22.4%, and Asia (not elsewhere specified) for 6.0%. Collectively, these three sources represented 51.6% of total import volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to South Korea in kind, 2017-2020

Imports in value, M $ US

Following two years of growth, South Korea's imports of cocoa-free sugar confectionery declined in 2020. The country imported 222.4 million US dollars worth of these products, representing a 5.5% decrease compared to 2019. The highest import value was recorded in 2019 at 235.4 million US dollars, while the largest annual increase of 5.5% occurred in 2018.

Annual dynamics of product's imports to South Korea in value, 2017-2020, M $ US

Between 2017 and 2020, Germany, China, and the United States led South Korea's cocoa-free sugar confectionery imports in value terms. Germany accounted for 22.5% of import value, China for 20.9%, and the United States for 9.3%. Together, these three countries represented 52.7% of South Korea's total import value for this product.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to South Korea in value, 2017-2020