OPINIO
Trade4go
Jul 10th, 2024
Original content
Health and wellness beverages are gaining popularity in South Korea, driven by a growing consumer preference for healthier lifestyles and functional drinks. There is increasing demand for natural, plant-based beverages without artificial additives, alongside a rising interest in low-calorie and sugar-free options due to awareness of sugar's health impacts. Busy lifestyles further boost demand for convenient, ready-to-drink health beverages.
From 2018 to 2023, retail sales for health and wellness beverages in South Korea surged from USD 2.58 billion to USD 3.56 billion, marking a robust 37.9% increase, as the Agriculture and Agri-Food Canada (AAFC) reported. This period underscored a consistent rise in consumer demand for healthier drink choices. Projections for 2024 anticipate continued growth, with an expected year-on-year (YoY) increase of 7.1%, pushing the market value to USD 3.81 billion. Looking towards 2026, the sector is forecasted to maintain an annual growth rate of 7.1%, reaching an estimated market value of USD 4.37 billion.
Figure 1. Retail Sales for Health and Wellness Beverages in South Korea
The South Korean health and wellness beverage market in 2024 is segmented into four main categories. Naturally Healthy (NH) Beverages dominate the market with a value of USD 2.87 billion, accounting for 75.27% of the market share. Fortified/Functional (FF) Beverages follow, valued at USD 659.9 million and representing 17.33% of the market. Better For You (BFY) Beverages holds a market value of USD 266.3 million, capturing 6.99% of the market share. Organic Beverages, while the smallest segment, contribute USD 15.5 million, making up 0.41% of the market.
Figure 2. 2024 South Korea Health and Wellness Beverage Market Share Forecast
NH Beverages in South Korea include drinks made with natural ingredients that provide inherent health benefits without artificial additives. These beverages are known for their purity and natural goodness, often derived from traditional and wholesome sources. Examples of NH beverages include herbal teas like ginseng tea, which is known for its energizing and immune-boosting properties, and barley tea, which is rich in antioxidants. Other examples are pure fruit juices and mineral waters.
Some examples of brands that carry NH beverages in South Korea include:
Figure 3. NH Beverage Examples
FF Beverages are enhanced with additional nutrients to support specific health functions. These beverages are designed to provide targeted health benefits, such as boosting immunity, improving digestion, or enhancing energy levels. FF beverages in South Korea include drinks fortified with vitamins and minerals, probiotic beverages, energy drinks, added vitamins drinks, and drinks with amino acids to combat fatigue.
Some examples of brands that carry NH beverages in South Korea include:
Figure 4. FF Beverage Examples
BFY Beverages are formulated to offer healthier alternatives to traditional drinks by reducing or eliminating undesirable ingredients such as sugar, calories, and artificial sweeteners. These beverages cater to consumers looking to make healthier choices without sacrificing taste.
Some examples of brands that carry BFY beverages in South Korea include:
Figure 5. BFY Beverage Examples
Organic beverages are crafted using ingredients cultivated organically, free from synthetic pesticides, fertilizers, and genetically modified organisms (GMOs). They cater to consumers who prioritize eco-friendly and chemical-free products.
Some examples of brands that carry organic beverages in South Korea include:
Figure 6. Organic Beverage Examples
The health and wellness beverage sector in South Korea is expanding rapidly, driven by a rising awareness among consumers who increasingly seek healthier beverage options. Producers and traders can effectively leverage these trends by focusing on innovation through new formulations that highlight natural ingredients, functional benefits, and reduced sugar content, catering to the growing demand for products that promote overall health and well-being.
It is crucial to understand and cater to diverse consumer demographics within each segment, necessitating tailored marketing approaches and transparent communication about ingredient origins and health benefits to foster trust and loyalty. Moreover, obtaining organic certification and adopting sustainable practices present significant opportunities as consumers prioritize products that are organic and environmentally friendly. To enhance market reach and accessibility, expanding distribution networks across retail channels and online platforms is essential, complemented by robust logistics and digital marketing strategies aimed at educating consumers about the health advantages of these beverages and stimulating demand.
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