Koreans turn to grocery stores’ private-label bread as prices climb

(Yonhap)

South Korean consumers are increasingly turning to cheaper, private-label bakery products from major retailers and convenience stores amid soaring prices.

According to sources from the retail industry on Monday, bakery sales at big-box chains Homeplus and Lotte Mart have each climbed about 10 percent this year, on the back of strong demand for their in-house brands, Mon Boulanger and Poongmiso.

Sales of Mon Boulanger’s popular Alps salt bread, priced at 2,700 won ($1.89) apiece, jumped 28 percent from a year earlier.

E-mart Inc.’s warehouse retailer Traders Wholesale Club also reported bakery sales up roughly 10 percent, led by butter rolls, bagels, salt bread, and sandwiches.

One of its bestsellers, an eight-pack of chewy salt bread priced at 8,980 won, has gained popularity for its affordability.

The rise in supermarket private-label bread sales reflects sharply higher prices at traditional bakeries.

A report by Korea Credit Data showed the average price of salt bread has increased from 2,000–2,500 won in 2022 to around 3,300–3,700 won this year, up roughly 30 percent over three years.

The price of bagels climbed about 44 percent to the 4,400–4,900 won range, while sandwiches rose 32 percent to between 7,500 and 8,300 won.

Convenience stores are also benefiting from the shift toward lower-priced options.

At BGF Retail Co.’s CU chain, all five of the top-selling private-label bakery items are priced below 2,400 won, including sweet pastries (1,600 won), peanut cream and strawberry jam streusel breads (2,300 won each), milk stick bread (2,400 won), and chocolate cream streusel (2,300 won). The average price of these bestsellers was about 2,180 won.

By Kwon Oh-kyun and Chang Iou-chung