Confectionery company Lotte Wellfood Co. surpassed 1 trillion won ($744 million) in overseas sales in 2024, marking a first since its founding in 1967.

According to the company on Monday, overseas revenue rose 8 percent in 2024 to 1.06 trillion won from 975.4 billion won in 2023. Sales from overseas subsidiaries totaled 856.7 billion won while exports climbed to 204.9 billion won, up 7 percent and 17 percent year-on-year respectively. Although total consolidated revenue dipped 0.5 percent to 4.04 trillion won, overseas performance strengthened.

Lotte Wellfood operates eight overseas subsidiaries across seven countries – India, Kazakhstan, Belgium, Russia, Pakistan, Myanmar, and Singapore - and exports to 50 nations. India emerged as the company’s key growth engine, accounting for 33 percent (290.4 billion won) of overseas subsidiary sales. Lotte India, which produces confectionery such as Lotte Choco Pie, recorded a 13 percent revenue increase to 117.6 billion won while ice cream maker Havmor saw a 4 percent rise to 172.8 billion won.

Lotte Choco Pie led Lotte India’s growth, generating 88.1 billion won - more than half of the subsidiary’s total sales and up from 75.1 billion won in 2023. The company credits the snack’s popularity to its localization strategy. “We replaced animal-based gelatin in the marshmallow with plant-based ingredients to accommodate India’s many vegetarians without compromising on taste, which led to strong word-of-mouth,” a Lotte Wellfood official said, noting the product now holds around 70 percent of India’s chocolate cake market.

Among the company’s export items, Pepero topped the list with 70.1 billion won in sales in 2024, or up 30 percent year-on-year, supported by expanded global distribution and marketing. First launched in 1983, the snack is exported to about 50 countries. Lotte Choco Pie followed with 14 billion won in export sales.

Lotte Wellfood’s low or no-sugar dessert brand Zero, launched for export in July 2023, is also gaining traction. Now sold in 13 countries - including Canada, Singapore, Hong Kong, China, Mongolia, Russia, Vietnam, and the Philippines - Zero saw export sales quadruple in the first quarter of 2025 compared to the same period during the previous year. The company expects continued growth in 2025.

Looking ahead, Lotte Wellfood plans to accelerate its global expansion with a particular focus on India. To increase Pepero sales, it is investing 30 billion won in a new production facility at its Haryana plant, targeting completion in the second half of this year. The Pepero sold in India is currently imported from Korea, while Lotte India and Havmor are also slated to merge in the first half of the year for improved operational efficiency.

Analysts view the company’s overseas strategy positively. NH Investment & Securities Co. forecasts that the share of the company’s overseas sales could rise to as much as 23 percent in 2025, driven by strong subsidiary performance in India. Korea Investment & Securities Co. also expects long-term growth to be driven by the Indian market. “With weakened domestic demand and surging cocoa prices weighing on profitability in the second half of 2024, Lotte Wellfood’s expansion in India is poised to support its long-term performance,” analyst Kang Eun-ji said.

Lotte Wellfood reiterated its commitment to global markets, focusing on flagship brands like Pepero and Zero through a strategy of rigorous localization.

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