South Korea’s High Paprika Quality and Safety Standards Drive Its Global Popularity

The global paprika market is experiencing significant growth, influenced by shifting consumer preferences, innovative production methods, and evolving trade policies. One significant factor driving the market's growth is the increasing recognition of paprika's health benefits, such as its antioxidant properties and high vitamin content. This has led to a surge in paprika’s demand globally. Additionally, paprika's versatility has made it a staple in a wide array of culinary applications, spanning from Western dishes to Asian fusion cuisine. Greenhouses have further enabled year-round farming, enhancing production capabilities and meeting growing consumer demand.

South Korean Paprika Market

South Korea is one of the emerging global paprika-producing countries focusing on high-quality and safe agricultural practices. According to the Korean Paprika (KOPA), a premium brand representing top-quality paprika produced in the country, production currently covers approximately 4.67 million square meters (m²). KOPA indicates that Gyeongsangnam-do Busan leads in production area, with 1.99 million m², accounting for 42.63% of the total. This is followed by Gangwon (22.48%), South Jeolla (15.09%), and North Jeolla (12.06%). These regions offer favorable climatic conditions and soil types for paprika cultivation.

South Korean paprika is highly valued for its quality and stringent safety standards, which are rigorously maintained from farm to market. This is achieved with the help of KOPA, which selects the best farms for each winter and summer growing season to ensure the highest quality paprika. The use of Good Agricultural Practices (GAP) certification ensures comprehensive safety measures, including careful management of pesticides, heavy metals, and microorganisms, to minimize environmental hazards and provide safe produce. South Korea’s paprika production prioritizes consumer safety, employing eco-friendly and organic farming methods to mitigate chemical hazards.

South Korea has witnessed growth in its paprika exports over the past decade, largely involving processed products such as paprika powder, flakes, and pastes. According to the International Trade Centre (ITC) Trade Map, South Korea exported 3.43 thousand metric tons (mt) of paprika under HS code 090422 in 2023. This represents a 9.93% year-on-year (YoY) decrease but a notable 56.12% increase over the past decade. In 2023, the primary export destination was the United States (US), receiving 1.08 thousand mt (-10.22% YoY), followed by Taipei, Chinese (+14.86% YoY), Japan (-1.30% YoY), and the Philippines (-37.74% YoY).

Figure 1: South Korea’s Paprika Exports from 2014 to 2023

Compared to other leading exporting countries, South Korea's paprika export prices are relatively high, averaging USD 5,907/mt in 2023. In contrast, China's price was USD 2,950/mt, Spain's was USD 3,809/mt, and India's was USD 3,193/mt. This price differential indicates that South Korean paprika is highly valued for its quality and stringent safety measures, which drive demand despite the higher cost.

It is also worth noting that South Korea also exports fresh paprika, leveraging its reputation for high quality and stringent safety standards. The country's fresh paprika is highly valued for its vibrant color, crisp texture, and mild flavor, making it a popular choice in international markets. Primary export destinations include Japan, Taiwan, Hong Kong, and Singapore. South Korea is also looking to expand into other markets, with the Philippines being a recent addition.

On July 10, 2024, the Animal and Plant Quarantine Agency reported that 360 kilograms (kg) of fresh paprika, produced by Odae, an agricultural corporation in Gangwon province, were exported via air cargo to Manila, Philippines. This development came 11 months after successful negotiations with the Philippines to ease export quarantine requirements for South Korean paprika and allow air transport. Previously, since quarantine negotiations for paprika were concluded with the Philippines in 2014, exports were limited to ship cargo, which posed challenges due to paprika’s perishability.

Various South Korean brands are available in both domestic and international markets, catering to diverse consumer tastes and preferences. Haechandle is a well-known South Korean brand that offers a wide range of paprika-based products, including paprika gochujang, paprika seasoning powder, paprika marinade sauces, and paprika kimchi seasoning. Internationally, Bibigo, a renowned South Korean brand in the US, also provides a selection of paprika-based products that appeal to consumers who enjoy Korean flavors. Some of its offerings include Bibigo Korean BBQ Sauce - Hot & Spicy, Bibigo Paprika Seasoning Mix, Bibigo Gochujang Sauce, and Bibigo Korean Hot Sauce. These products prominently feature paprika as a key ingredient.

Figure 2: Bibigo Gochujang Sauce

Market Outlook

The South Korean paprika sector has a promising outlook as consumer awareness grows around the need for healthy, high-quality, and safe food products. Some of the top emerging markets for South Korean paprika include the Philippines, where demand has increased due to the country's young population and the widespread influence of K-pop and K-dramas. The United Arab Emirates (UAE) is another emerging market, known for its status as a major international trade hub, with a diverse cosmopolitan population. Additionally, Europe and North America present potential destination markets, driven by a strong demand for high-quality and safely produced paprika products.

In conclusion, South Korea’s stringent quality control and safety standards have propelled its paprika products to popularity, enhancing their demand. To cater to the growing interest in specialty and gourmet ingredients, producers should expand their product range with value-added options. Additionally, South Korean paprika manufacturers should incorporate K-culture elements into their products to capitalize on the current K-pop and K-drama wave. Given these market dynamics, the South Korean paprika market is poised for significant growth in the coming years.