Over the past three years, the prices of popular baked goods like bagels and the infamous “salt bread” have soared, but many bakeries are seeing losses worsen.

According to Korea Credit Data’s Bakery Market Trend Report, an analysis of 37,000 stores showed that bagel prices have jumped 44 percent since 2022. Sandwiches and salt bread - a salted butter roll like a croissant - followed with increases of 32 percent and 30 percent, respectively. Salt bread, now the top-selling item with a 15.7 percent share of sales, has seen its typical price rise from 2,000-2,500 won to 3,000-3,500 won.

Despite the “breadflation,” profits at bakeries and pastry shops have plunged. Average losses rose 160 percent compared to the previous year, while cafes and coffee shops saw a 44 percent decline. Bakeries reported a negative 10 percent operating margin, staying in the red, whereas cafes maintained a 23 percent margin.

However, even the cafe sector is seeing continued profit erosion, highlighting growing cost pressures throughout Korea’s baked goods market.


don@heraldcorp.com