Rising demand for meal-replacement bread draws Lotte, Maeil Dairies and The Born Korea into competition
From private-label to premium, companies look to white bread as a new growth engine
2,900 won. That is the price of a loaf of white bread Lotte Group developed by pooling the capabilities of its affiliates.
A "white bread war" is underway in South Korea's retail industry, as companies have seized on the most basic of baked goods as a new growth engine. Lotte Mart, Lotte Super and Seven-Eleven began selling their private-label "Sumgyeol Tong Sikppang" white bread in April.
The product traces its origins to an idea from Lotte Group Chairman Shin Dong-bin, who drew inspiration from natural-yeast bread he encountered in Japan and proposed developing a high-quality loaf at an affordable price. The project launched in 2021 but was put on hold after raw material costs surged, then was revived last September.
Lotte Central Research Institute developed the product, which Lotte Wellfood manufactures. It currently sells for 2,500 won at Lotte Mart and Lotte Super and 2,900 won at Seven-Eleven.
The straightforward strategy has delivered results. Seven-Eleven said its bakery category sales from Jan. 1 through June 24 this year rose 16 percent from the same period a year earlier. White bread category sales in particular rose 3.8 times after Sumgyeol Tong Sikppang's launch. The product is also being featured in a series of pop-up events at Lotte Department Store and outlet locations.
Lotte's rationale for choosing white bread was clear. As a staple meal-replacement bread, it maintains steady demand even amid high inflation and an economic slowdown. According to market research firm Euromonitor, the domestic meal-bread market nearly doubled in size, growing from 79.6 billion won ($51.2 million) in 2018 to 159.8 billion won in 2024.
Online sales tell a similar story. Kurly said white bread and dinner roll sales in the first half of this year rose about 20 percent from the same period last year — five percentage points above the overall bakery sales growth rate of 15 percent.
White bread also appeals to retailers because it drives purchases of related products such as jam, butter, cheese and fresh vegetables. In the two weeks after Sumgyeol Tong Sikppang launched at Lotte Mart, 20,000 units of "Oneul Joheun" strawberry jam (690g) and 10,000 units of "Oneul Joheun" 100 percent peanut butter sold alongside it.
Manufacturing efficiency is another advantage. "The production process is relatively simpler than other bakery products, which makes for higher manufacturing efficiency," an industry official said. "The fact that it is a steady seller not heavily subject to trends is also a positive."
Other companies have also recognized the category's potential. Maeil Dairies acquired the premium bakery brand Mildo in 2024 to enter the meal-bread market and is expanding its consumer touchpoints through Paul Bassett locations. A new Mildo bakery will open at the Gangnam branch on Friday.
The Born Korea is also growing its business through its white bread specialty brand Easy White Bread. Starting with a company-operated store near Hankuk University of Foreign Studies earlier this year, the brand has expanded to 30 locations nationwide based on franchise agreements. It is posting daily sales of 3 million won and monthly sales of 60 million won. White Lié, a leading domestic premium white bread brand, surpassed 100 franchise locations last year after launching its franchise business in 2024 and now operates 113 stores.
siuu@heraldcorp.com
