(image: Yonhap)
SEOUL, July 8 (Korea Bizwire) — A shrinking ice cream market caused by a low birthrate and the rise of alternative products is leading ice cream companies to tap into YouTube ads and subscription services to boost revenues.
South Korea’s ice cream market shrank from 1.68 trillion won (US$1.47 billion) in 2018 to 1.53 trillion won in 2020, according to market research firm Nielsen Korea.
In response, ice cream companies are stepping up to come up with aggressive marketing strategies to expand consumption.
Lotte Foods Co. is currently producing advertisements for its ‘Dwaeji Bar’ (Pig Bar), based on ideas submitted by applicants from the MZ generation, born between the 1980s and 2000s.
Haitai Icecream, a subsidiary of Haitai Confectionery and Foods Co., has introduced the first ‘Bravo Cone’ advertisement in 10 years, starring widely acclaimed South Korean actor Lee Byung-hun, on YouTube and television.
The ice cream industry is also coming up with subscription services to create new revenue streams.
Lotte Confectionery Co. introduced a monthly subscription service for ‘Natur,’ Lotte’s premium ice cream brand, in July of last year. In May, Lotte introduced ‘Monthly Ice’, a new subscription service, attracting some 200 subscribers in four days.
Binggrae Co. is also offering monthly subscriptions for its premium ice cream Cledor, reaching as many as 1,000 subscribers from last October to May.
Ashley Song (ashley@koreabizwire.com)
