K-food brands gain traction in Mongolia as market grows

Customers selecting products at the 5th Mom’s Touch store in Mongolia. (Mom’s Touch)

South Korean food brands are making inroads in Mongolia, where the food market is expanding rapidly despite its relatively small population.

Lotte Wellfood Co. announced on Tuesday that confectionery products under its sugar-free brand, Zero, excluding ice cream, are gaining popularity in Mongolia.

The country is expected to account for more than one-third of the brand’s total export revenue.

With a population of 3.5 million—half of whom reside in the capital city of Ulaanbaatar—Mongolia presents an attractive market for Korean food companies.

Additionally, 60 percent of the population is under the age of 35, providing a young consumer base eager to try new products.

According to the Korea Agro-Fisheries & Food Trade Corporation, Mongolia’s food market is projected to grow at an annual rate of 14.6 percent, reaching $7.97 billion by 2026.

Since its launch in May 2022, the Zero brand has gained attention from health-conscious consumers by introducing sugar-free options like sugar-free jellies and Choco Pies.

Lotte Wellfood aims to exceed 50 billion won in revenue this year, up from 40 billion won in 2023.

The growing popularity of Zero in Mongolia is largely due to the positive perception of Korea among Mongolian consumers, who have shown a strong preference for Korean snacks and culture. Furthermore, the high prevalence of cardiovascular disease—which accounts for 40 percent of deaths in Mongolia—has driven demand for healthier food options.

Lotte Wellfood has capitalized on this trend by positioning Zero as a premium wellness brand.

Other Korean food franchises are also expanding in Mongolia.

Tous les Jours, operated by CJ Foodville, reported a 20 percent year-over-year increase in revenue from its Mongolian stores as of September.

Since entering the market in 2016, the bakery chain has expanded to 19 locations across the country. In June 2023, the company opened a flagship store in Mongolia modeled after its Korean locations to strengthen its brand identity.

Mom’s Touch, a Korean burger and chicken chain, is also gaining ground in Mongolia amid the growing popularity of Korean culture and increased interest in K-style burgers and fried chicken.

The company reported an 18 percent increase in Mongolian sales in September compared to the previous three-month average.

Mom’s Touch attributed its success to offering unique flavors and portion sizes that local franchises cannot match, with monthly sales per store now surpassing the average in Korea.

Revenues continue to trend upward as Mongolian consumers embrace these distinctive menu options.