Snack companies selling overseas feast on profits while those focused on domestic market starve
Published: 06 Feb. 2026, 16:39
Updated: 06 Feb. 2026, 17:26
![A shopper is seen selecting Pepero products, manufactured by Lotte Wellfood, at a large supermarket in Seoul on Feb. 6, 2025. [NEWS1]](https://koreaseafood.online/data/photo/2026/02/06/a7a57a42-3928-4594-b170-b8c720b99680.jpg)
A shopper is seen selecting Pepero products, manufactured by Lotte Wellfood, at a large supermarket in Seoul on Feb. 6, 2025. [NEWS1]
Sales and profits of major confectionery companies moved in opposite directions last year, underscoring the growing divide between firms dependent on overseas markets and those tied to weak domestic demand.
Orion, which generates most of its revenue abroad, saw both sales and operating profit rise last year, while Lotte Wellfood, which is more focused on the domestic market, struggled.
Lotte Wellfood posted consolidated sales of 4.22 trillion won ($2.87 billion) last year, an increase of 4.2 percent from a year earlier, according to disclosures filed with the Financial Supervisory Service on Friday.
While this marked the company’s highest annual sales figure on record, operating profit fell sharply by 30.3 percent on year to 109.5 billion won.
“About half of our confectionery products contain cocoa, and the sharp surge in cocoa prices that began in 2024 continued through last year,” said a source at Lotte Wellfood. “Cocoa prices are gradually declining and exchange rates are stabilizing, so the situation is expected to improve from the middle of this year.”
By contrast, Orion, which announced its earnings the previous day, recorded consolidated sales of 3.33 trillion won and operating profit of 558.2 billion won last year. Sales rose 7.3 percent and operating profit increased 2.7 percent from a year earlier.
![A shopper selects Orion Choco Pie products at a large supermarket in Seoul on Oct. 29, 2025. [YONHAP]](https://koreaseafood.online/data/photo/2026/02/06/cb7b997e-ec50-44a3-a938-520d5355a8da.jpg)
A shopper selects Orion Choco Pie products at a large supermarket in Seoul on Oct. 29, 2025. [YONHAP]
Overseas performance played a key role in driving Orion’s growth. Sales at Orion’s Russia subsidiary surged 47.2 percent on year to 339.4 billion won, marking the strongest growth among its regional units.
“In 2009, overseas sales surpassed domestic sales for the first time, and after overseas revenue exceeded 1 trillion won in 2012, the scale has continued to grow,” said a source at Orion. “Last year, the Russia subsidiary diversified its core product lineup, including watermelon Choco Pies and jellies, to suit local tastes and expanded channel-specific products for major retailers, delivering strong results.”
Orion's India subsidiary also performed well, posting sales of 27.5 billion won, up 30.3 percent from a year earlier, as products priced at 20 rupees ($0.22) such as White Pie gained traction in the market.
The contrasting performances of Orion and Lotte Wellfood are largely attributed to differences in their overseas business exposure.
![Visitors to the ″Welcome to K-Sweets Holiday″ event held at Times Square in New York are seen on Nov. 11, 2025. [LOTTE WELLFOOD]](https://koreaseafood.online/data/photo/2026/02/06/96575d93-2ad6-4a10-a566-0660a7f07908.jpg)
Visitors to the ″Welcome to K-Sweets Holiday″ event held at Times Square in New York are seen on Nov. 11, 2025. [LOTTE WELLFOOD]
Exports of confectionery products last year reached $670.7 million as demand for Korean snacks continues to rise alongside the spread of Korean pop culture, according to the Korea Customs Service.
Against this backdrop, Orion’s global business, including exports, accounted for about 70 percent of total sales last year. Lotte Wellfood’s global sales share, by contrast, stood at about 28.6 percent.
Lotte Wellfood said it plans to focus more aggressively on overseas markets to improve performance.
“Export sales last year totaled 239.6 billion won, up 16.8 percent from a year earlier, and sales at overseas subsidiaries reached 965.1 billion won, an increase of 13.8 percent,” said a source at Lotte Wellfood. “As we expanded our global business last year and achieved record-high sales, we will accelerate overseas market expansion this year to achieve qualitative growth.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NOH YU-RIM [[email protected]]
with the Korea JoongAng Daily
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