South Korea Cocoa Powder Market Research Report, 2029

The South Korean cocoa powder market has grown significantly, owing to the country's expanding food and beverage industry, increased demand for chocolate and bakery items, and rising consumer interest in health-conscious and functional foods. Cocoa powder's importance grew in the late twentieth century as food cultures became more globalised and Western-style sweets gained popularity. The growth of Korean confectionary behemoths such as Lotte and Orion contributed to increased demand for cocoa powder. The emergence of café culture in South Korea, with a focus on luxury beverages such as hot chocolate and chocolate-flavored sweets, has increased demand for cocoa powder over time. In the 2000s, premium cocoa powders became more widely available. South Korea has strong food safety rules for importing and selling food products, including cocoa powder. The Ministry of Food and Drug Safety (MFDS) supervises these rules, ensuring that imported cocoa powder fulfils quality criteria for heavy metals, pesticide residues, and microbiological contamination. Cocoa powder imported into South Korea must also meet labelling standards, which include ingredient transparency, expiration dates, and nutritional information. The COVID-19 pandemic had both beneficial and negative implications for the South Korean cocoa powder market. On the one hand, the temporary closure of bakeries, cafés, and restaurants in 2020 resulted in a reduction in commercial demand for cocoa powder. However, the epidemic inspired an increase in home baking as customers sought comfort in making baked products. According to the research report "South Korea Cocoa Powder Market Research Report, 2029," published by Actual Market Research, the South Korean cocoa powder market is expected to reach a market size of more than USD 100 Million by 2029. Lotte Confectionery and Orion are key players in South Korea's cocoa powder market, as they use cocoa powder extensively in their chocolate and snack items. Domestic suppliers include Seoul F&B and Samyang Food, which distribute cocoa powder for both industrial and retail purposes. These enterprises collaborate with international cocoa powder producers such as Cargill and Barry Callebaut. South Korea imports the majority of its cocoa powder, largely from West African countries such as Côte d'Ivoire and Ghana, where cocoa beans are ground into powder before shipping to Asia. Europe, particularly the Netherlands and Germany, is a major supplier of high-quality cocoa powder to the South Korean market. South Korea does not produce cocoa at home, hence cocoa powder exports are limited. However, the country does export completed chocolate products derived from imported cocoa powder, with Japan, China, and Southeast Asia serving as significant markets for South Korean confectionary items. In recent years, South Korean enterprises have formed partnerships with global cocoa producers and international brands to promote premium and organic cocoa powder goods. For example, Lotte Confectionery has collaborated with Barry Callebaut to create new chocolate products that appeal to health-conscious consumers by utilising cocoa powder with a higher concentration of antioxidants. Advertising initiatives on platforms such as Naver and Kakao have targeted younger consumers who enjoy baking at home, encouraging them to utilise quality cocoa powders in their homemade delights.

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The South Korean cocoa powder market is divided into three categories: natural cocoa powder, Dutch process cocoa powder, and others (including speciality and organic variations). In the South Korean cocoa powder market, Dutch Process Cocoa Powder is the most popular type, owing to its adaptability and smoother flavour profile, which appeals to both consumers and manufacturers. Large confectionery makers such as Lotte Confectionery and Orion choose this kind because it has consistent flavour and colour. International vendors like as Barry Callebaut Korea and Cargill Korea account for the majority of Dutch cocoa supply, while domestic distributors supply bakeries, cafés, and food production enterprises. Natural cocoa powder is popular in South Korea for its robust, raw cocoa flavour in premium dark chocolate and beverages. Domestic providers, such as Seoul F&B and wholesalers, provide natural cocoa goods to both the retail and industrial sectors. However, its strong and sometimes bitter flavour makes it unpopular in mass-market candy and bread products, where a softer taste is generally required. Other categories include organic cocoa powder, as well as low-fat and premium cocoa powders. Organic cocoa is gaining popularity in South Korea as consumers seek ethically sourced and environmentally friendly products. Premium companies that sell organic cocoa powder target high-end consumers and speciality sectors, such as health-conscious segments and gourmet chocolate producers. Cocoa powder is used in a wide range of industries in South Korea, including chocolate and confectionery, bakery, beverage, functional food, pharmaceuticals, and cosmetics. The Chocolate and Confectionery business is one of South Korea's top consumers of cocoa powder. Local confectionery heavyweights such as Lotte Confectionery, Orion, and Haitai make substantial use of cocoa powder in the production of chocolates, sweets, and snacks. International suppliers such as Barry Callebaut and Cargill are critical in producing high-quality cocoa powder to meet the demand for both premium and mass-market chocolate products. Dutch Process Cocoa Powder is recommended in these goods for its smoothness and balanced flavour. Cocoa powder is also used extensively in the bakery industry. With a developing café culture and increased demand for baked goods, cakes, pastries, and cookies frequently include cocoa powder as a crucial ingredient. Cocoa powder is used in beverages such as hot chocolate and milkshakes. The growing popularity of café beverages containing cocoa powder, such as mochas and hot cocoa, has increased demand. As the number of health-conscious consumers grows, the Functional Food industry has embraced cocoa powder's antioxidant benefits. Cocoa powder is used in the pharmaceutical and cosmetic industries to make dietary supplements and beauty products. Although its applications in these industries are more specialised, providers focus on premium and organic segments. In the South Korean cocoa powder market, distribution channels are largely classified as offline or online, with each having unique characteristics and effects on market dynamics. Online distribution presently dominates the South Korean cocoa powder business. The convenience of online buying, combined with the pandemic-induced shift in consumer behaviour, has accelerated the expansion of e-commerce. Online distribution has grown significantly in recent years, particularly with the rise of e-commerce sites like Coupang, Gmarket, and SSG.com. These platforms offer a comfortable purchasing experience, allowing customers to order cocoa powder from the comfort of their own homes. Offline channels have long dominated the South Korean market due to their established infrastructure and capacity to meet immediate consumer needs. Supermarkets, convenience stores, speciality stores, and wholesalers are examples of traditional retail businesses that use offline distribution. Major retail chains including as E-Mart, Homeplus, and Lotte Mart sell cocoa powder in a variety of formats, including packaged baking products and premium cocoa powders. Wholesale distributors offer bulk cocoa powder to bakeries, confectioneries, and food makers. Domestic providers such as Seoul F&B and Samyang Food play an important role in delivering cocoa powder through these channels, ensuring that both local and international brands reach commercial customers and end consumers.

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Kripa Shah

Senior Analyst

Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Cocoa Powder market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type • Natural Cocoa Powder • Dutch Process Cocoa Powder • Others

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By Application • Chocolate & Confectionery • Bakery • Beverage • Functional Food • Pharmaceutical • Cosmetics By Distribution Channel • Offline • Online The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Cocoa Powder industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.