South Korea Vegan Chocolate Market Report and Forecast 2024-2032

South Korea Vegan Chocolate Market Outlook

The South Korea vegan chocolate market is expected to grow at a CAGR of 13.6% between 2024 and 2032. The increasing lactose-intolerant population and the growing demand for clean-labelled and sustainable food is anticipated to majorly drive the vegan chocolate market's growth in South Korea.

News and Developments in South Korea Vegan Chocolate Market

In 2021, South Korean food conglomerate CJ Cheiljedang  started manufacturing plant-based food products. In 2023, the company expanded their product range and set up a different factory to increase its annual production capacity. The company plans to establish another plant to produce vegan products.

Seoul metropolitan government conducted various awareness campaigns  to promote veganism and the related start-ups via social media and by sponsoring vegan food events. AI food scanners are installed in the city hall to monitor the food wastage done by the employees.  

Key Trends in South Korea Vegan Chocolate Market

Veganism is avoiding eating meat, eggs, dairy products, or other food products of animal origins. Vegan chocolate is a type of chocolate that is made without using any ingredient that is derived from animals. 

The Growing Popularity of Oat Milk as a Vegan Substitute for Regular Milk Due to the Increasing Number of Lactose Intolerant People in the Country is Augmenting the Vegan Chocolate Market 

The most significant factor driving the market is that more than half of the population in South Korea is lactose intolerant . This factor has compelled the manufacturers to invest more in research and development to develop suitable alternatives to meet consumer demands. In 2021, one of the leading milk-producing companies in South Korea, Maeil dairies, started manufacturing oat milk, gaining much attention among the South Korean population. The company sold over 310,000 units of oat milk  in the first three months on an online platform. This upsurged the vegan chocolate market as chocolate is being used in various beverages, deserts, and dishes.

Opportunities in the Vegan Chocolate Market

Increased Acceptance of Alternates to Regular Milk to Boost the Vegan Chocolate Market

Chocolate brands, Coffee brands, food manufacturers, and the whole dairy industry has now started to sell oat milk as an alternate to the regular cow’s milk. Oat milk  is a vegan-friendly and lactose-free milk made from soaked oats. During manufacturing it is fortified with nutrients to enhance the nutritional profile. The Soy milk, almond milk, and coconut milk market is also gaining traction. Oat milk has a larger share in the market due to its taste resemblance to regular cow or goat's milk.

In terms of nutrition, soy milk is naturally more nutritious than oat milk as it has a similar amount of protein as cow’s milk. However, the fat and carbohydrate levels are lower, making it suitable for health-conscious people and those trying to lose weight. 

Growing Awareness Regarding Animal Cruelty, Clean-Labelled, and Sustainable Food Products

Vegan chocolate is widely accepted by millennials and generation Z because of increased awareness regarding animal cruelty and sustainability. According to PETA (People for the ethical treatment of animals), cows and other milk-producing mammals are injected with antibiotics and artificial hormones to produce more milk to meet the increasing demand. Due to increased awareness and excellent internet penetration, people are now becoming more empathetic toward animals which are bolstering the market growth.

Moreover, the instance of developing congenital disabilities increases in their off springs. This could affect the quality of the product, health, and our environment in the long run. This factor compels the consumers to shift their preference toward eco-friendly and animal-friendly food products, contributing to the market growth. People are now much more inclined toward ‘clean labelled’ products as they promote the usage of natural and unprocessed ingredients, healthy lifestyle, and exclusion of preservatives from the diet. 

Growing Inclination Toward Sustainable Packaging

To reduce the environmental impact and ecological footprint, companies are now putting efforts to include sustainable packaging which is attracting a lot of environment-conscious customers to buy their products.  ‘Korea Pack’  is a widely recognised global exhibition in which packaging manufacturers from all around the world share and promote their latest packaging technologies, products, and types of equipment with the world. 

Health Benefits of Vegan Chocolates  to Surge the Market Growth

Vegan chocolates provide several health benefits. They aid in lowering the blood pressure and cholesterol levels in the body. People who consume vegan chocolates have lower chances of developing cardiovascular diseases, type 2 diabetes, and several types of cancers, and it also improves serotonin levels. 

Vegan chocolates are healthier than the regular ones as nutrients like vitamin C, calcium, iron, potassium, and many more are retained. They are also rich in antioxidants and flavonoids, which promote blood circulation in the body, thereby reducing in chances of getting heart diseases.

Premiumisation of Vegan Chocolates

Protein bars are a well-known vegan chocolate product among fitness enthusiasts like gym goers, sportspersons, and marathon runners. Improved standards of living and increased disposable income allow the consumers to buy premium vegan chocolates, thereby aiding the market growth.

Occasions like Valentines’ Day Upsurges the Market Sales

The consumption of vegan chocolate booms in the country during valentine’s season  as chocolate is one of the most common gifts given to loved ones. It is loved by people of all ages. Since the ageing population is more in the country, they look out for healthy alternatives to fulfil their sweet tooth cravings.

Challenges in the Market

Few Cafes and Restaurants Offer Vegan Options

South Koreans’ diet majorly consists of meat and seafood hence there are very few cafes and restaurants that offer vegan food. Moreover, Vegan cafes and restaurants are more in Gangnam and Itaewon, which are famous for being fancy and expensive places. Hence vegan food is quite costly . This factor poses a hindrance to the vegan chocolate market.

Market Analysis

Based on product, the market can be segmented into dark chocolate and vegan white chocolate, among others. Based on flavour, the South Korea vegan chocolate market can be segmented into caramel, brown butter, lavender, and coconut milk, among others. On the basis of distribution channels, the market can be bifurcated into supermarkets/hypermarkets, convenience stores, speciality stores, and online. 

The comprehensive EMR report provides an in-depth evaluation of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the vegan chocolate market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans. 

Market Share by Product

Based on the types of vegan chocolates in South Korea, the market can be segmented into vegan milk chocolate, vegan dark chocolate, and vegan white chocolate. Vegan dark chocolate is preferred by the south Korean population due to its various health benefits and hence has a significant market share. Consumers are increasingly looking for ways to include nutritional advantages in their chocolate consumption. Furthermore, dark vegan chocolate contains antioxidants and flavonoids, which aid with cognitive function. In comparison to white chocolate and milk chocolate, dark chocolate has a lower sugar content. However, the market for vegan milk chocolate and vegan white chocolate is also expected to experience a gradual surge in the given forecast period. 

Market Share by Distribution Channels

Based on distribution channels, retail and online stores have a significant market share in the industry. In offline vegan stores, vegan chocolate is readily available in supermarkets/hypermarkets, convenience stores, and speciality stores. Speciality stores have a wider range of flavours than other offline distribution channels. However, supermarkets/hypermarkets have an edge since vegan chocolates of various brands and prices are available at competitive prices, which makes it easier for the consumers to choose from a wide range of variants. 

Various ice cream parlours and independently run coffee shops in Korea offer items made from vegan chocolate only. Gelateria Eta  is an independently run gelato shop known for its plant-based vegan gelato. COVID-19 pandemic effected the production and supply of cocoa beans which slowed down the manufacturing  of vegan chocolates in the country. Currently, the market is now reviving, and more key players are coming up which is making the market more competitive.

Key Highlights of the Report