韩国食品企业在选举后集中上调方便面、面包、饮料等产品价格

Food companies are raising prices across the board following the June 3 local elections. From cup ramen, sandwich bread and Hetbahn to dumplings, canned tuna, curry, doughnuts and coffee, manufacturers are simultaneously lifting product prices. Companies unanimously said that surging prices for raw materials and packaging, driven by high exchange rates and high oil prices, have pushed cost pressures to their limit.
According to the food industry on the 24th, Nongshim will raise the factory prices of products under 43 brands by an average of 5.8% starting the 1st of next month. Cup noodles will rise an average of 6.0%, snacks 5.5% and beverages 7.7%. By category, the increases cover 18 cup noodle brands including Yukgaejang Sabalmyeon and Shin Ramyun Cup, 23 snack brands including Shrimp Crackers and Honey Twist, and two beverage brands including Capri-Sun and Welch's. The flagship product Yukgaejang Sabalmyeon will be adjusted from 1,100 won to 1,200 won, and Shrimp Crackers (90g) from 1,500 won to 1,600 won.
Nongshim raised ramen prices once in March last year, then cut prices on some products by up to 14.6% in March this year in line with the government's push for price stability. Shrimp Crackers had their price lowered once in 2023 after an increase in September 2022, before returning to the previous level last year.
Nongshim explained that "cost burdens for packaging and other materials have risen significantly due to the prolonged high exchange rates and high oil prices," adding that "we have held out through cost reductions and management efficiency, but the price adjustment was unavoidable due to higher supplier prices and worsening domestic profitability." However, considering the burden on consumers, Nongshim excluded bagged ramen, which accounts for 63% of total ramen sales, from this price increase.
BR Korea will also raise the prices of 39 Dunkin' doughnut items by an average of 6.5% starting the 2nd of next month. The flagship products Famous Glazed and Kakao Honey Dip will be adjusted from 1,700 won to 1,900 won, and the Creme Brulee Doughnut from 4,100 won to 4,200 won. Tous les Jours, operated by CJ Foodville, will raise the recommended consumer prices of 76 items including bread and cakes by an average of 8.2% starting the 31st of this month. The Daily Milk Bread will rise by 200 won and the Ttujoumam Egg Toast by 300 won. Some flagship products including red bean bread, soboro bread and castella were excluded from the increase.
The industry commonly cites the rise in the won-dollar exchange rate, packaging costs, and higher logistics and labor costs as the background for the price increases. A food industry official lamented that "as instability in the Middle East pushes up international oil and naphtha prices, cost burdens for packaging materials such as plastic containers and film have also grown," adding that "on top of this situation, prices of raw materials such as wheat and palm oil have risen, steadily expanding manufacturing cost burdens." Indeed, according to the Bank of Korea, the year-on-year increase in imported raw material prices exceeded 30% for three consecutive months, at 40.1% in March, 33.0% in April and 38.9% in May. The increase in intermediate goods prices in May also reached 26.8%.
As cost burdens accumulate, "food inflation" is spreading across food products in general. Earlier, CJ CheilJedang raised the prices of 27 items including Hetbahn, dumplings and grilled fish by an average of 8%, while Sajo Daerim raised prices on canned tuna, sauces and cooking oil products by up to 20%. Ottogi raised the factory prices of 29 items including curry, ketchup and pepper, while Lotte Chilsung Beverage and Harim also adjusted the prices of major products. In the dining industry, The Born Korea, Mega MGC Coffee, Ediya Coffee, The Venti, Coffee Bean and Lotteria have raised prices, adding to consumer burdens.