South Korea’s Ministry of Food and Drug Safety (MFDS) released data on last year’s production and export volume of health functional foods on August 1.
Red ginseng, the largest health functional foods category in the country, saw a decline in production output value by 21.2 per cent to KRW$464.4 billion (US$339.7m).
Traditionally taken for immune health and for supporting energy levels, red ginseng is consumed by consumers of all age groups, from kids to the elderly.
The MFDS explained that the drop was due to slowing demand for immunity-related products post COVID-19.
“In the case of red ginseng products, consumption to improve personal immunity had decreased due to the end of COVID-19, resulting in a 21.2 per cent decline in domestic production compared to the previous year,” said the ministry.
Amid a declining domestic market, the herb is seeing growing interest from overseas, especially in China, Japan, and Vietnam.
Total export value for red ginseng went up 32 per cent last year to US$56.32 million, which is still a much smaller figure – only about 16.6 per cent of the domestic market.
Red ginseng remained the largest health functional foods category in South Korea last year, with its production output value taking up 16.8 per cent of the entire market worth KRW2.76 trillion (US$2.02bn).
Given the size of the red ginseng market, Korea Ginseng Corporation took the top spot in terms of its health functional foods production output value last year.
However, due to lower demand for red ginseng, the company’s production output value also took a hit last year, down 22 per cent to KRW$3bn (US$2.2m).
The company told us in an interview last year that its ginseng products were sold across Asia, Europe, Middle East, and the US. It even has plans to set up a manufacturing plant in the US.
The other growing exports
Vitamins and minerals were the second largest category after red ginseng, with calcium and vitamin E registering notable increase in both production and export value.
Production output value of vitamins and minerals was KRW$438.9bn (US$321m) last year, up 15 per cent year-on-year.
In particular, calcium and vitamin E were highlighted as the fast-growing segments, as production output value grew 35.8 per cent to KRW$96.3bn (US$70.4m) and 58.1 per cent to KRW$24bn (US$17.6m) respectively.
The MFDS said that the increase was driven by the country’s efforts in promoting vitamins and minerals exports.
“It is analysed that this is continuing a steep upward growth trend, as exports to China and other countries have increased significantly due to the health functional food industry's efforts to improve product quality and expand exports at the same time, since demand for the products has increased,” the ministry said.
Last year, exports of calcium and vitamin E had skyrocketed by 416.6 per cent and 576.6 per cent to US$25.9m and US$5.01m respectively.
Another ingredient worth mentioning is theanine commonly used in health foods for supporting relaxation.
Production output value of theanine was up 114 per cent last year to KRW$22.4bn (US$16.4m), while export amount expanded by 300.1 per cent to US$5.61m.
“The production and export of theanine products, which can help relieve tension caused by stress, have increased significantly compared to the previous year.
“This indicates that interest in stress management, in addition to improving immunity has recently increased,” said the MFDS.
Total exports of health functional foods were up 15.4 per cent last year to US$248.3m, although the total production output value was down 1.7 per cent to KRW2.76 trillion (US$2.02bn), the ministry added.
Other top-ranking categories and companies
Probiotics, the omega-3 EPA and DHA, and HemoHIM Angelica Gigas extract were the other top five largest health functional foods categories in terms of production output value last year.
Companies wise, contract manufacturer Novarex was the second largest health functional foods producer after Korea Ginseng Corporation.
This is followed by another contract manufacturer Kolmar BNH, Chong Kun Dang Health, hy Co, Cosmax Bio, Cosmax NBT, Suheung, Natural Way, and RP Bio.
The top 10 companies list is largely the same as year 2022, except that Amorepacific was replaced by Natural Way last year.
