South Korea Frozen Yogurt Market By Nature (Organic, Regular), By Flavor (Chocolate, Mango, Pineapple, Strawberry, Others), By Category (Low-Fat, No-Fat), By Distribution Channel (Supermarket & Hypermarket, Convenience Stores, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

The South Korea Frozen Yogurt market was valued at USD 4.20 billion in 2024 and is expected to grow to USD 7.01 billion by 2030 with a CAGR of 4.32% during the forecast period. The South Korea Frozen Yogurt market is driven primarily the growing health consciousness among consumers who are seeking healthier dessert alternatives. Frozen yogurt is perceived as a low-calorie, probiotic-rich option compared to traditional ice cream, making it popular among health-conscious individuals. Also, the trend toward customization, with a variety of toppings and flavors, appeals to consumers' desire for personalized dining experiences. The rise of social media also plays a role, as visually appealing frozen yogurt creations become popular among younger consumers. The increasing number of frozen yogurt chains and their expanding presence in urban areas further drives market growth.

Key Market Drivers

Growing Popularity of Low-Fat Dessert

The growing popularity of low-fat desserts is a key driving factor for the rise of South Korea Frozen Yogurt market. As health consciousness increases among consumers, particularly younger generations, there is a shift toward healthier snack options. Frozen yogurt, with its low-fat content compared to traditional ice cream, has become a popular alternative. It is often marketed as a guilt-free indulgence, offering the creamy, indulgent taste of ice cream without the high calories and fat content. Also, frozen yogurt is often enriched with probiotics, adding a health benefit that appeals to those looking to improve gut health. The availability of various toppings, such as fresh fruits and nuts, allows for further customization, making frozen yogurt not just a healthier choice but a versatile dessert option. This growing demand supports the market's expansion.

Rapid Urbanization & Rising Disposable Income

Rapid urbanization and rising disposable income are significant driving factors for the growth of the South Korea frozen yogurt market. As a part of this, according to a recent study, as of 2022, South Korea's per capita disposable income was roughly 21.82 million South Korean won, up from 21.47 million the previous year. Per capita net disposable income in South Korea has gradually increased in recent years. As more people move to urban areas, there is a noticeable shift in lifestyle preferences, with increased demand for convenient and modern dining options. Busy city life and longer working hours have made quick, yet healthier, snack alternatives like frozen yogurt appealing. Urban consumers seek trendy, customizable, and health-conscious desserts, which frozen yogurt offers. Also, rising disposable incomes, particularly among the younger population, enable people to spend more on premium, specialty food products, including frozen yogurt.

Growing Retail & Franchise Chain

The expansion of frozen yogurt chains and the growing number of outlets in urban areas have played a significant role in boosting the frozen yogurt market in South Korea. As a part of this, as of August 2023, Baskin-Robbins, the leading ice cream supplier in South Korea, is strengthening its market position through localization, despite the country's decreasing frozen desserts sector. As urbanization increases and more people move to cities, especially Seoul, the demand for convenient and trendy food options has surged. Frozen yogurt chains are responding to this demand by opening new stores in high-traffic areas such as shopping malls, business districts, and near educational institutions, making the product more accessible to a larger consumer base. This widespread availability, coupled with competitive pricing, has allowed frozen yogurt to reach a broader demographic, from young professionals to families.

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Key Market Challenges

 Supply Chain Disruption

Supply chain disruptions pose a significant challenge to the South Korea Frozen Yogurt market. Issues such as transportation delays, fluctuating ingredient prices, and interruptions in the supply of key components, such as dairy products and toppings, can lead to inconsistencies in product availability. These disruptions can affect the timely delivery of frozen yogurt to stores, especially during peak seasons or when demand increases. Also, supply chain challenges can result in higher costs for producers and retailers, which may lead to price hikes for consumers, potentially affecting sales. The need for just-in-time inventory systems in frozen yogurt shops further increases vulnerability to supply chain issues. As frozen yogurt heavily relies on fresh and quality ingredients, maintaining product consistency during times of supply chain disruptions is difficult. These factors combined make it imperative for businesses in the sector to develop contingency plans and diversify their supplier networks to mitigate the risk of supply interruptions.

Changing Consumer Preferences

Changing consumer preferences present a significant challenge to traditional frozen yogurt brands in South Korea. As more consumers embrace plant-based and dairy-free diets due to health concerns, ethical beliefs, or lactose intolerance, there is a growing demand for alternatives to traditional dairy-based frozen yogurt. While some brands have started offering dairy-free options made from almond, soy, or coconut milk, meeting the quality and taste expectations of these consumers remains difficult. Plant-based alternatives require careful formulation to ensure the right texture, flavor, and nutritional benefits, all while maintaining product consistency.

Key Market Trends

Rising Influence of Social Media

The rising influence of social media is a significant trend driving the growth of the frozen yogurt market in South Korea. Social platforms like Instagram, YouTube, and TikTok play a major role in shaping consumer preferences, particularly among younger generations. The visually appealing nature of frozen yogurt, with its colourful toppings and creative presentations, makes it ideal for social media sharing, encouraging consumers to post their experiences and discover new products. This creates viral trends around certain brands or unique flavor combinations, further fuelling demand.

Rising Popularity for Eco-Friendly Packaging

The rising popularity of eco-friendly packaging is a significant trend in the South Korea Frozen Yogurt market, driven by growing consumer awareness of environmental issues. As sustainability becomes a key consideration for consumers, many frozen yogurt brands are shifting towards more eco-conscious packaging solutions. As a part of this, as of May 2024, by 2030, South Korea hopes to cut plastic waste creation by half and increase recycling rates from 34% to 70%.86% of South Korea's total garbage is already recycled into other products, with the remainder going to landfill. Brands are opting for biodegradable cups, recyclable containers, and compostable spoons to reduce their environmental footprint. This trend is particularly strong among younger, eco-conscious consumers who prioritize brands that align with their environmental values. As South Korea continues to embrace eco-friendly initiatives, the demand for sustainable products and packaging in the frozen yogurt market is expected to increase, driving both innovation and growth in the sector.

Rising Demand for Plant-Based Alternatives

The rising demand for plant-based alternatives is transforming the South Korea frozen yogurt market. As plant-based diets gain popularity, driven by health, environmental, and ethical considerations, consumers are increasingly seeking dairy-free frozen yogurt options. As a part of this, as of October 2023, the Danish government revealed its national action plan for plant-based meals, while South Korea became the second country to actively participate in food system transformation. Products made from almond, soy, coconut, and oat milk are gaining traction among vegan, lactose-intolerant, and health-conscious individuals. These alternatives offer the creamy texture and taste of traditional frozen yogurt without the dairy content, meeting the growing consumer need for inclusivity and variety in food options. Brands are responding by innovating with new plant-based flavors and formulations, ensuring that these alternatives are just as flavorful and satisfying as their dairy counterparts. This trend not only appeals to those with dietary restrictions but also taps into the broader shift toward plant-based eating, positioning plant-based frozen yogurt as an essential part of the modern dessert landscape in South Korea.

Segmental Insights

Distribution Channel Insights

Supermarket & Hypermarket dominated the South Korea Frozen Yogurt market primarily driven by the widespread reach and convenience. These retail outlets offer consumers easy access to a variety of frozen yogurt options, catering to both traditional and plant-based preferences. The presence of frozen yogurt in large-scale grocery stores allows consumers to purchase frozen yogurt products for at-home consumption, expanding the market beyond just retail outlets and dedicated frozen yogurt chains.

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Regional Insights

Northern dominated the South Korea Frozen Yogurt market, due to its high population density, urbanization, and vibrant food culture. With many young professionals, students, and families, the demand for trendy and health-conscious food options like frozen yogurt is significantly higher. Also, the northern region is home to many of the country's popular shopping districts, entertainment areas, and tourist spots, making it an ideal location for frozen yogurt shops. The presence of global and local frozen yogurt chains in this area further fuels market growth, attracting both local consumers and international visitors. As a result, the northern region has become the key market hub for frozen yogurt in South Korea, contributing to its continued expansion and popularity.

Recent Developments

• In February 2024, Pureture, a company that uses liquid fermentation to generate GMO-free, yeast-based casein, has teamed with Namyang, South Korea's third-largest dairy producer. Namyang and Pureture will collaborate to create a completely new plant-based collection. Casein is the primary protein found in milk, accounting for 80% of the total protein content. It is responsible for emulsifying qualities, which assist prevent water and fat from separating and give cheese its melty and stretchy texture.
• In October 2024, Unilever's launched a new bite-sized ice creams to capitalize into the growing snacking trend. The Bon Bons are available in three of the brand's most popular flavors: White Chocolate & Cookies, Gold Caramel Billionaire, and Salted Caramel & Almond. They will be available in-store and online in Portugal, Germany, Switzerland, Australia, France, the United Kingdom, Ireland, and Spain, as well as other European markets soon.
• In January 2023, Unilever Ice Cream providers launched new frozen snacks and ice creams from Breyers and Reese's. Among the peanut butter frozen dairy desserts are a Reese's Peanut Butter Sandwich, which features a signature Reese's peanut butter swirl packed between two chocolate wafers for an epic flavor experience (suggested retail price (SRP) of $4.49), as well as Reese's Peanut Butter Light Ice Cream, Reese's Chocolate Frozen Dairy Dessert, and Reese's Mini Pieces Light Ice Cream, which are each available nationwide for $5.49 per carton.

Key Market Players

• Danone S.A.
• Lotte-Nestlé Korea Co., Ltd
• Unilever Korea Ltd
• The Campbell's Company
• HP Hood LLC
• The Smoothie Factory, Inc.
• General Mills Inc.,
• Yogurtland Franchising, Inc.
• Scott Brothers Dairy Inc.,
• Honey Hill Farms

Report Scope:

In this report, the South Korea Frozen Yogurt Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   South Korea Frozen Yogurt Market, By Nature:

o   Organic

o   Regular

• South Korea Frozen Yogurt Market, By Flavor:

o   Chocolate

o   Mango

o   Pineapple

o   Strawberry

o   Others

• South Korea Frozen Yogurt Market, By Category:

o   Low Fat

o   No Fat

• South Korea Frozen Yogurt Market, By Distribution Channel

o   Supermarket & Hypermarket

o   Convenience Stores

o   Online

o   Others

• South Korea Frozen Yogurt Market, By Region:

o   Southern

o   Northern

o   Central

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the South Korea Frozen Yogurt Market.

Available Customizations:

South Korea Frozen Yogurt Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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