South Korean conglomerate Lotte Group is set to expand its footprint in India’s food sector by entering the snacks segment with an investment of $300 million over the next five years. The company aims to introduce more Korean snacks and bolster its manufacturing presence in the country.
Paul Yi, CEO of Lotte Wellfood, highlighted the growing global popularity of Korean culture, including food, music, and entertainment, and noted that India is witnessing a similar surge in demand. He emphasized that as India continues to develop, it presents an opportune moment to introduce world-class Korean snacks to the market.
Yi is currently in India to inaugurate the largest ice cream manufacturing plant of Havmor, a Lotte Group subsidiary, in Pune, established with an investment of Rs 500 crore. Lotte, South Korea’s fifth-largest company first entered the Indian market in 2004 and currently sells Choco-Pie, Parry’s Eclairs, Coffee Bite, and Havmor ice creams.
The company has been expanding its presence in India, having acquired Parry’s from the Murugappa Group in 2004 and Havmor Ice Cream for Rs 1,020 crore in 2017. It competes with brands such as Hindustan Unilever’s Kwality Walls, Amul, Mother Dairy, Vadilal, and RJ Corp-owned Cream Bell in the ice cream sector.
With India’s ice cream market valued at $3 billion compared to China’s $23 billion, Yi sees significant growth potential. In September 2023, Lotte India Corporation invested Rs 185 crore to expand Choco Pie manufacturing in Tamil Nadu.
The company is also exploring the introduction of multiple snack brands from its global portfolio to India. The first among these will be Pepero, a chocolate-covered stick cookie, which recorded global sales of $150 million in 2023 and is exported to over 70 markets. India will be the first market outside Korea to manufacture Pepero at Lotte’s Haryana plant, with its launch expected in July.
According to market research firm IMARC Group, India’s snacks market was valued at Rs 42,694.9 crore in 2023 and is projected to more than double to Rs 95,521.8 crore by 2032. The growth is attributed to the rising popularity of convenience foods, the resurgence of regional and direct-to-consumer brands, and the expansion of quick-commerce and e-commerce platforms.
Yi mentioned that Lotte is also considering exporting from India to markets such as the Middle East and South Africa, though current capacity constraints remain a challenge. However, he noted that expansion efforts are underway to address this issue.
Lotte Wellfood had announced the merger of its Indian subsidiaries, Lotte India and Havmor Ice Cream, in August last year, with the merger expected to be finalized next month. Other companies, including Nestle, ITC, Hindustan Unilever, and Sugar Cosmetics, have also been leveraging the K-wave trend by introducing Korean foods and cosmetics in India.