Health and Wellness in South Korea

Published: November 2011
Price: $ 1900


This Euromonitor market report provides market trend and market growth analysis of the Health and Wellness industry in South Korea. With this market report, you’ll be able to explore in detail the changing shape and potential of the industry. You will now be able to plan and build strategy on real industry data and projections.

The Health and Wellness Market in South Korea market research report includes:
• Analysis of key supply-side and demand trends
• Detailed segmentation of international and local products
• Historic volumes and values, company and brand market shares
• Five year forecasts of market trends and market growth
• Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:
• What is the market size of Health and Wellness in South Korea?
• What are the major brands in South Korea?
• Were the sales of health and wellness affected by the global recession?
• What functional ingredients in food and drinks are in fashion in South Korea?
• Is the organic movement still growing?
• Are weight management food and drinks driven by product reformulation?

Why buy this report?
• Gain competitive intelligence about market leaders
• Track key industry trends, opportunities and threats
• Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Health and Wellness market research database.
• Each report is delivered with the following components:
• Report: PDF and Word
• Market statistics: Excel workbook
• Sample Analysis

EXECUTIVE SUMMARY
Growing health and wellness market in 2010
In 2010, the health and wellness market in South Korea continued to see growth, largely due to the ongoing wellbeing trend and more diversified product portfolios. A “smart consumption” trend was also discernible in 2010, with people increasingly making purchases based on “value” or “quality” and not “volume”, meaning that consumers were willing to buy typical health and wellness products such as organic, naturally healthy or functional goods more often regardless of the higher prices. Moreover, the economic recovery that started from the end of 2009 is seeing people pay more to have health and wellness food and beverages more often. Manufacturers have reacted well to what customers want to have. Various brands saw the introduction of no-additive products (eg in dairy) or biscuits that are made from locally-grown products with minimal or no artificial additives. This trend is in line with an increasing preference for naturally healthy or organic products.

Specialised retailers strong in naturally healthy and organic products
As an extension of the wellbeing trend there is increasing interest in naturally healthy or organic foods in South Korea. As a result, specialised organic or naturally healthy product retailers are becoming more common in neighbourhoods. Outlets are usually located strategically in residential areas, so accessibility is much better than with hypermarkets or department stores, which have played major roles in distribution historically. In addition, people tend to look for an “ethical company” that shows a commitment to its social responsibilities with regard to the environment and communities when it comes to buying such products. Unlike hypermarkets or department stores, specialised retailers are able to maintain moderate prices through their differentiated distribution networks and their direct contact with local farmers or communities. Therefore the less marked fluctuations in pricing in such outlets compared to hypermarkets, for example, also appeals to customers.

Increasing number of private label products
Private label products from various distribution channels were an interesting development in 2010. As most of the distribution channels – from department stores to convenience stores – have been developing their own private label brands, more customers could enjoy increased choice options at relatively low prices. Their strategies in terms of private label products are not to copy national brands’ products, but rather to develop an “only” product that it is only possible to be purchased at a certain outlet. However, there has been criticism of unfair contracts with OEM producers or deception in terms of raw ingredients or content volume, so private label has faced some concerns among consumers in terms of reliability. To cope with the criticism of private label products, government organisations such as Korea Food and Drug Administration and distributors are working on quality enhancements through legislation and self-screening systems.

Mergers and acquisitions or strategic alliances for diversification
Companies have been looking to use mergers and acquisitions or strategic alliances to broaden business areas and look for new sales drivers to combat saturation, along with saving time and costs. LG Household & Health Care acquired Hankook F&B and Haitai Beverage in 2010 to supplement its distribution networks and product line-ups. Lotte Samkang’s merger with Pasteur Milk enabled it to relaunch in dairy products, ensure stable raw ingredient supply for its main product, ice cream, and to use Pasteur Milk to supply private label dairy products to all distribution networks in the Lotte Group. For Maeil Dairy Industry Co Ltd strategic alliances with other major players became a solution to the saturated demand in dairy products. Various strategic alliances with key players are expect to be more common as a collective solution for raising sales shares in diverse market areas.

Blueprint for the health and wellness market in the future
The health and wellness market is expected to show positive growth over the forecast period. Not only the competition in diverse product areas, but also the competition between national brands and private label is expected to be fierce. Customers will be able to choose from a wide range of goods, with more detailed customer segmentation expected to play a positive role in market growth.