Korean supplement market ripe for investors?
it is growing by 20-30 per cent annually, representing a
significant opportunity for foreign companies.
An overview of the Korean market for nutraceuticals suggests that it is growing by 20-30 per cent annually, representing a significant opportunity for foreign companies.
Presented at a meeting organised by the Canterbury and Nelson Nutraceuticals Cluster in New Zealand, the report noted that Korea's population of over-65s will double by 2020, from 7 per cent in 2002 to 14 per cent 20 years later.
Korea's 57 million people are increasingly interested in their health, especially concerned about children and the elderly. The supplement market is currently worth KW1.8 trillion (€1.4bn) but this will rise to KW4 trillion in 2006.
The Korean Food Code classifies 25 products as food supplements, including fish oils, chitosan, calcium and aloe, but there are restrictions on certain products accepted in other markets, and this regulatory process presents one of the major barriers to foreign companies.
A good in-market partner is needed for product registration and import approvals, advised David Ferguson, trade commissioner at New Zealand's embassy in Seoul, at the meeting in September.
Large pharmaceutical and food manufacturers are beginning to enter the market, but outside players still only represent 20 per cent of the market. They do tend to enter at the quality end of the market however, and with growing consumption expected from this emerging market, supplement and ingredient firms could do well to take notice.
