In response to escalating prices in bakery franchises, that can exceed 10,000 won for just a few items, South Korean consumers are progressively seeking out more affordable private label (PB) bread. These are readily available in convenience stores and large retailers. As a consequence, the rise in sales of PB bread has prompted industry insiders to refer to the phenomenon as a ‘budget bakery boom’.
The Surge of Private Label Bread
Major convenience store chains report that PB bread now constitutes over 20 percent of all bakery sales. The market share of CU’s PB products has more than doubled from 9.4 percent in 2023 to 21 percent between January and September 2025. Similarly, GS25 experienced a rise from 21.1 percent to 24.9 percent, and 7-Eleven increased its PB ratio from 15 to 20 percent within the same timeframe.
Due to this growing trend, retailers have been quick to introduce new in-house bakery brands. CU’s ‘Bakehouse 405’ launched in August 2023 and currently offers around 30 products. GS25 operates two PB lines, ‘Breadyque’ and ‘Seongsu’, which were launched in 2021 and 2024 respectively. These lines have sold 70 million and 3 million units to date. The ‘Seven Select’ range offered by 7-Eleven features approximately 40 varieties, and Emart24’s ‘Bakery of the Day’ (BOTD) was introduced in June with an initial selection of seven products.
Price Versus Quality
The primary attraction for consumers is the price tag. Items from CU’s Bakehouse 405, such as a sweet pastry, are priced at just 1600 won. Similarly, GS25’s bun is priced at 2100 won, and 7-Eleven’s honey hotteok is a mere 1500 won. Even on the higher end of the price scale, Emart24’s apple pie retails for 2400 won, which is less than a third of the price of similar pastries in high-end bakeries.
In addition to the cost savings, the stores have also expanded their product ranges. Their selections now include a wide variety of items such as bagels, cream buns, baguettes, roll cakes, and even pizza rolls. Retailers stress that PB bread is not only affordable, but also of high quality. This is attributed to their partnerships with small manufacturers, which help to cut out middleman costs and marketing expenses.
Supermarkets Join the Trend
Large supermarkets are also following the trend. Homeplus runs ‘Mont Blagé’ bakery corners in over 120 stores nationally, offering traditional red bean, custard, and soboro buns for around 2000 won each. Lotte Mart’s ‘Poongmiso’, which was launched in 2022, is also growing its reach. Meanwhile, Emart has been selling imported ready-made cakes and dough under its ‘No Brand’ and ‘Peacock’ ranges since 2024, highlighting the advantages of affordability and convenience.
Industry pundits believe that the popularity of PB bread highlights a shift in consumer thinking, driven by continuous inflation. Consumers are prioritising practicality and taste over brand prestige.
Questions & Answers
What is causing the ‘budget bakery boom’ in South Korea?
The ‘budget bakery boom’ is due to rising prices in bakery franchises, prompting South Korean consumers to seek out more affordable private label bread from convenience stores and large retailers.
How is the industry responding to the increased demand for private label bread?
The industry is responding by introducing new in-house bakery brands. These brands offer a wide variety of products at a fraction of the cost of high-end bakeries.
What are the advantages of buying private label bread?
The main advantages of buying private label bread are affordability and quality. These breads are more inexpensive due to partnerships with small manufacturers that reduce costs. The quality of the bread also remains high, providing consumers with a cost-effective alternative to higher-priced branded products.
