Baskin-Robbins stands out in melting Korean ice cream market

Global ice cream chain Baskin-Robbins, the top ice cream seller in South Korea, is solidifying its market position with localization despite the country’s shrinking frozen desserts market.

The ice cream and cake giant posted 585.9 billion won ($451.6 million) in revenue last year, up 2.9% on-year, according to Korea Fair Trade Commission (FTC). Its second-quarter sales rose 15% from the first quarter of this year. the regulatory authority for economic competition said.

The number of Baskin-Robbins stores in Korea jumped 5.8% to 1,720 as of the end-2022, which means there are 3.3 outlets per 10 million people. That is more than four times the ratio in the US.

Its growth stands out in Korea where the ice cream market shrunk 35% from end-2015 to 1.3 trillion won as of end-2022. Natuur, an ice cream chain under Korea’s Lotte Group, reduced the number of stores from 77 in 2018 to 36 as of the end-2022. US ice cream company Häagen-Dazs operates only nine stores in Korea as of July.

Local food giant SPC Group holds a 66.7% stake in BRKorea Co., Baskin-Robbins’ Korean affiliate operator. The ice cream chain’s US headquarters owns the remaining 33.3%. 

The ownership structure enables Baskin-Robbins’ Korean business to hold its market dominance with quick and flexible responses to local consumer demand, experts say. The Korean affiliate launches a new flavor on the first days of every month and reflects local snacks in favor for new flavors, such as Iced Honey Butter Almond released in 2021.

It also made a hit with Am I an Einspänner?, an espresso ice cream with milk flavor launched last September. The frozen dessert went viral as the company held a contest for ice cream recipes and adopted a teenager’s idea for the product. This left local consumers with the strong impression that Baskin Robbins listens to customers’ opinions.

The Korean affiliate is also strong at making varied and detailed ice cream cake designs. The made-in-Korea cakes are exported to Saudi Arabia, Singapore and Malaysia.

Write to Soo-Jung Ha at agatha77@hankyung.com

Jihyun Kim edited this article.