[Consumption value-Trend] The distribution industry is having a peak period for frozen chicken and pizza as restaurant's food costs rise sharply
[Consumption value-Trend] The distribution industry is having a peak period for frozen chicken and pizza as restaurant's food costs rise sharply
  • Jinil, Kang Reporter / Yohan, Bok Reporter
  • 승인 2023.05.26 16:59
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Customers are paying attention to 'productive consumption'
On the 18th, a customer is looking through frozen chicken products in a supermarket. (photo: Jinil Kang)

[Consumerwide_Jinil, Kang Reporter / Yohan, Bok Reporter] Restaurant food costs have risen sharply. In particular, the price of chicken dishes, which is considered to be one of the favourite foods of Korea, is reaching 30 thousand won. Same for pizzas. In order to bring down the cost of their favourite food, consumers are starting to find alternatives. On each distribution channel, more customers are purchasing frozen chickens and pizzas. Customers are willing to take the simple cooking process at home in exchange for reducing prices for food, including delivery costs. This probably means that ideas about consumption are moving towards 'practical' rather than 'comfortable'.

On the 18th, frozen chickens at a big market.( photo: Jinil Kang)

On the 18th, followed by industry, frozen chicken sales are increasing rapidly. According to Danawa, an online service provider, there has been an increase in online sales of fried chickens and buffalo wings with bones and without bones, each by 84% and 68% between January and April, compared to the same season last year.

Meanwhile, the sales of Market Curly increased by 100%, 35%, and 12%, in seasoned chicken, chicken wings, and overall chicken categories, compared to the same season last year. The sales of Emart, one of the big markets, have also increased in frozen chicken nugget and chicken tender products by 62.4% during April compared to last year's April. The sales of Homeplus increased by 40% in April compared to the same quarter last year regarding their own branded frozen food products, including frozen chicken.

A frozen chicken product released by CJ(Cheiljedang) in April is attracting customers in the market. 350 thousand packs were sold in 2 weeks of release. It's about 5 times that of the most popular product sales on record.

Frozen pizza at the big market. (photo: Jinil Kang)

It is the same for frozen pizzas. According to CU, the yearly sales record has been increased by 22.5% in 2022 compared to a year before. Market Kurly has sold a type of frozen pizza, which has been promoted to have the quality taste of a restaurant when it's cooked with an air-fryer. Sales records of this product have increased 3 times in April compared to the time of release, Dec 2022.

Many customers seem to be innovative about purchasing frozen chicken and pizza because they can enjoy chicken products easily at a reasonable price. Along with a high rise in restaurant prices, it has been quite a burden for consumers. In particular, business owners trying to develop frozen products close to the quality of restaurant food might be the reason why more customers are drawn to their products recently.

Not only are frozen chickens and pizza well-sold. But, ready to eat food products are noticeably increasing as well in the big market. Followed by the distribution industry, there was a 59.8% increase in the ready to eat chicken product in April compared to the same quarter last year. In Emart, 100 thousand 'ready to eat chicken products' under 10 thousand won were sold just in April. The sales record of ready to eat chicken products handled in Lottemart has increased double in April compared to the same month last year.

A Market Kurly related person said on that day during an interview with Consumerwide, "Recently, along with a high rise in prices in the market including restaurant food prices and delivery costs, more customers seem to be paying attention to productive consumption. I see that the trend of customers valuing 'budget consumption' might be even expanded."



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