South Korea Food & Drink Report

Published 02 July 2015

  • 107 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
$1,295.00
South Korea Food & Drink Report

BMI View: Total food consumption in South Korea is expected to increase at a moderate compound annual growth rate of 4.0% over the forecast period between 2014 and 2019. The market is relatively mature , with per capita spending on food items already high, which effectively limits the possibilities for more substantial expansion over the coming years. Nonetheless, growth will be sustained by a relatively stable economic outlook, which will offer opportunities for premiumisation.

Headline Industry Data (local currency)

  • Total food consumption growth year-on-year (y-o-y) in 2015: +2.3%; compound annual growth rate (CAGR) 2014-2019: +3.5%.

  • Per capita food consumption growth (y-o-y) in 2015: +1.9%; CAGR 2014-2019: +3.1%.

  • Alcoholic drinks value sales growth (y-o-y) in 2015: +2.1%; CAGR 2014-2019: +3.4%.

  • Soft drinks value sales growth (y-o-y) in 2015: +4.1%; CAGR 2014-2019: +4.9%.

  • Total mass grocery retail sales growth (y-o-y) in 2015: +5.0%; CAGR 2014-2019: +6.5%.

Key Industry Trends And Developments

Tesco To Sell Homeplus Unit : In early June 2015, UK-based retailer Tesco put its South Korean business Homeplus up for sale. The company invited six firms, including private equity firms KKR & Co, Carlyle Group and C VC Capital Partners, to bid for Homeplus, which has been valued at GBP4bn (USD6bn), Reuters reported. The sale, potentially Asia's biggest private equity deal, is seen as Tesco's best bet to cut debt, reverse losses at home and fund a turnaround plan as it battles to recover from the accounting scandal in 2014. Homeplus is Tesco's largest business outside the UK, with more than 400 stores, 500 franchise stores and more than 6mn customers a week.

Avanza Outlines Avacado Strategy For South Korea : In March 2015, New Zealand-based avocado exporter Avanza said it was planning to tap into the developing South Korean market, as the country witnesses a shift in consumer preferences. New Zealand exporters are well positioned to capitalise on...

BMI Industry View
7
SWOT
9
Food
9
Drink
11
Mass Grocery Retail
13
Industry Forecast
15
Consumer Outlook
15
Food
17
Food Consumption
17
Table: Food Consumption Indicators - Historical Data & Forecasts (South Korea 2012-2019)
18
Canned Food
18
Confectionery
19
Table: Confectionery Value/Volume Sales, Production & Trade - Historical Data & Forecasts (South Korea 2012-2019)
20
Meat
21
Table: Meat Volume Sales, Production & Trade - Historical Data & Forecast (South Korea 2012-2019)
21
Fish
22
Table: Preserved Fish (Other) Volume Sales, Production & Trade - Historical Data & Forecast (South Korea 2012-2019)
22
Oils and Fats
22
Table: Oils and Fats Volume Sales, Production & Trade - Historical Data & Forecast (South Korea 2012-2019)
23
Dairy
24
Table: Dairy Volume Sales, Production & Trade - Historical Data & Forecast (South Korea 2012-2019)
25
Drink
27
Hot Drinks
27
Table: Hot Drinks Value/Volume Sales, Production & Trade - Historical Data & Forecasts (South Korea 2012-2019)
27
Alcoholic Drinks
28
Table: Alcoholic Drinks Value/Volume Sales, Production & Trade - Historical Data & Forecasts (South Korea 2012-2019)
29
Soft Drinks
30
Table: Soft Drinks Sales, Production & Trade (South Korea 2012-2019)
32
Mass Grocery Retail
33
Table: Mass Grocery Retail Sales By Format - Historical Data & Forecasts (South Korea 2012-2019)
35
Table: Retail Sales By Format (%)
35
Trade
36
Table: Trade Balance - Historical Data & Forecasts (South Korea 2012-2019)
38
Macroeconomic Forecasts
39
Economic Analysis
39
Table: Economic Activity (South Korea 2010-2019)
43
Industry Risk Reward Index
44
Asia Pacific - Risk/Reward Index
44
Table: Asia Pacific Food & Drink Risk/Reward Index Q315
45
South Korea Risk/Reward Index
49
Market Overview
50
Food
50
Agriculture
50
Organics
50
Food Processing
51
Drink
52
Alcoholic Drinks
52
Soft Drinks
52
Mass Grocery Retail
53
Table: Structure Of Mass Grocery Retail Market By Estimated Number of Outlets (South Korea 2006-2010)
55
Table: Mass Grocery Retail Sales By Format (South Korea 2010-2019)
55
Table: Mass Grocery Retail Sales By Format (South Korea 2010-2019)
56
Table: Average Sales Per Outlet By Format, 2010
56
Industry Trends And Developments
57
Food
57
Key Industry Trends And Developments
57
Drink
60
Key Industry Trends And Developments
60
Mass Grocery Retail
63
Key Industry Trends And Developments
63
Competitive Landscape
68
Table: Key Players In South Korea's Food Sector
68
Table: Key Players In South Korea's Drink Sector
69
Table: Key Players In South Korea's MGR Sector
70
Company Profile
71
Maiel Dairy Industry
71
Nong Shim
73
Hite Brewery
76
Oriental Brewery
79
Lotte Shopping
81
Samsung Tesco HomePlus
84
Global Industry Overview
87
Table: Food and Drink Core Views - Q115 Roundup
94
Demographic Forecast
96
Table: Population Headline Indicators (South Korea 1990-2025)
97
Table: Key Population Ratios (South Korea 1990-2025)
97
Table: Urban/Rural Population & Life Expectancy (South Korea 1990-2025)
98
Table: Population By Age Group (South Korea 1990-2025)
98
Table: Population By Age Group % (South Korea 1990-2025)
99
Glossary
101
Food & Drink
101
Mass Grocery Retail
101
Methodology
103
Industry Forecast Methodology
103
Sector-Specific Methodology
104
Sources
104
Risk/Reward Index Methodology
105
Table: Food & Drink Risk/Reward Index Indicators
106
Table: Weighting
107

The South Korea Food & Drink Report features BMI Research's market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.

BMI's South Korea Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in South Korea.

Key Benefits

  • Benchmark BMI's independent food and drink industry forecasts for South Korea to test other views - a key input for successful budgeting and strategic business planning in the Korean food and drink market.
  • Target business opportunities and risks in South Korea through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering food and drink manufacturing and consumption and the mass grocery retail market.

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the food, drink and mass grocery retail sectors and within the broader political, economic and business environment.

BMI’s Food and Drink Risk Reward Index

BMI’s Risk Reward Index provides investors (food and drink manufacturers and mass grocery retailers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic points. These provide indices of highest to lowest appeal to investors, with each position explained.

Food Forecasts

BMI’s food chapter is divided into sections such as meat, fish, confectionary, dairy and canned foods, and provides insight into each market’s food industry, centred on a forecast to end-2019 for the sector. The chapter includes the following elements:

  • Industry Forecast Scenario: Historical data series and a forecast to end-2019 for growth of key indicators within a market’s food industry. Indicators include food consumption, food consumption as % of GDP, canned food sales, confectionery sales and food and drink imports and exports, among others.
  • Industry Developments: A summary of corporate developments, including news on M&As, FDI, expansions, closures and financial results, in addition to analysis and explanation of the latest industry events and how these could influence further investment.
  • Market Overview: An overview of the structure of the market, introducing the key players and discussing underlying trends.

Drink Forecasts

Segmented the same way as BMI’s food chapter, the drink section provides insight into each market’s drink industry, centred on a forecast to end-2019 for the sector. Forecast indicators include alcoholic and soft drink sales by value, volume and sub-sector and tea and coffee sales, among others.

Mass Grocery Retail Forecasts

Segmented the same way as BMI’s food and drink chapters, the mass grocery retail section provides insight into each market’s grocery retail industry, centred on a forecast to end-2019 for the sector. Forecast indicators include mass grocery retail sales by format (including supermarkets, hypermarkets, convenience and discount stores) and a breakdown of the organised retail sector versus the traditional sector, among others.

Competitive Landscape

Illustration of the mass grocery retail and food and drink industries via rankings tables comparing revenues, number of outlets and number of employees. This chapter also includes data-rich, in-depth regional analysis of the market position, business strategies and investment potential of the region’s leading mass grocery retail and food and drink operators.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Food & Drink reports draw on an extensive network primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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