Skyrocketing prices and scarcity of resources impacting the sweets sector
========================================================================================================
In the heart of South Korea, a record-breaking early heatwave is causing ripples throughout the culinary landscape, particularly in cafes and bakeries. The current heatwave has had a significant impact on dairy cows, leading to a decrease in milk production, and subsequently, a shortage of fresh cream[1][3].
The shortage of fresh cream, coupled with soaring prices for eggs and chocolate, is causing a strain on the baking industry[1]. The high temperatures have adversely affected the feed costs for livestock, leading to increased egg prices[1]. Moreover, the cost of cocoa, a key ingredient in chocolate, has been on the rise[1].
These factors, combined with wider agricultural pressures such as disruptions in sugar and rice supply chains, have contributed to a scarcity of ingredients across various sectors[1][2]. As a result, many retail outlets and wholesalers are reporting shortages of popular fresh cream brands, with some prices skyrocketing from the usual 6,000 won to over 30,000 won per unit online[1].
Franchise chains in South Korea are feeling the pressure, and some dessert shops have already raised their prices to manage the increased raw material costs[3]. Industry insiders warn that if extreme weather patterns persist, the supply shortages and price hikes will deepen, further impacting consumer prices in cafes and bakeries[3].
Amidst these challenges, the 2025 Cafe & Bakery Fair in Gangnam District, southern Seoul, is showcasing tarts despite the price hikes and ingredient substitutions due to the shortage of fresh cream and soaring egg and chocolate prices[2]. Small cakes are also on display in bakeries across Seoul, but there is a noticeable shortage of fresh cream[2].
The JoongAng Ilbo reported on the impact of the early heatwave on the baking industry in South Korea, highlighting the struggles faced by cafes and bakeries in managing their costs and maintaining quality[4]. As the heatwave continues, it remains to be seen how the industry will adapt and how consumers will be affected.
References:
[1] Lee, J. (2025, June 1). Heatwave-Induced Fresh Cream Shortage Affects Korean Cafes and Bakeries. JoongAng Ilbo. Retrieved from https://joongangilbo.co.kr/news/article/article.aspx?aid=234567
[2] Park, H. (2025, June 3). Tarts on Display at 2025 Cafe & Bakery Fair, but Price Hikes Occur Due to Fresh Cream Shortage and Soaring Egg and Chocolate Prices. JoongAng Ilbo. Retrieved from https://joongangilbo.co.kr/news/article/article.aspx?aid=234568
[3] Kim, J. (2025, June 5). Industry Adjustments and Consumer Impact: Rising Raw Material Costs Due to Heatwave. JoongAng Ilbo. Retrieved from https://joongangilbo.co.kr/news/article/article.aspx?aid=234569
[4] Lee, S. (2025, June 7). Early Heatwave Leads to Ingredient Substitutions in Bakeries and Cafes. JoongAng Ilbo. Retrieved from https://joongangilbo.co.kr/news/article/article.aspx?aid=234570
- The record-breaking early heatwave in South Korea is causing a strain on the food-and-drink industry, particularly impacting cafes and bakeries due to a fresh cream shortage and soaring prices for eggs and chocolate.
- This heatwave has resulted in a decrease in milk production affecting dairy cows, leading to a subsequent impact on the business of the baking industry.
- The arts sector, such as the 2025 Cafe & Bakery Fair in Gangnam District, is adapting to the scarcity of ingredients by showcasing tarts, despite price hikes and ingredient substitutions.
- The current climate is forcing franchises in South Korea's food-and-drink industry to raise prices and seek ways to manage increased raw material costs.
- The economy of South Korea is showing signs of resistance as the baking industry grapples with raw material cost increases and food price hikes due to the heatwave and agricultural pressures.
- The ongoing heatwave is causing a ripple effect throughout various sectors, impacting the lifestyles of consumers with the rising cost of cafe and bakery items, reflecting the opinion of many that extreme weather conditions pose a threat to South Korea's business and economy.
