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The Baby Food Sector in South Korea, 2018

The Baby Food Sector in South Korea, 2018

Summary

Between 2011 and 2017, the infant population aged 0-3 years declined by 13.3% to 1.2 million. The dramatic falls in birth numbers in 2016 and 2017, from an already low base, have had a clearly negative impact on baby food sales. Government incentives to encourage childbirth have so far proved unable to reverse the trend, and the country has one of the lowest crude birth rates in the world.

Volume consumption has fallen by 17% between 2011 and 2017, with most of the decline occurring over the last two years, in response to the decline in the number of babies. Retail sales in 2017 stood at ₩678 billion (US$600 million), representing a decline of 4.3% in current price terms and 12% at constant prices.

Milks dominate, claiming over 60% of retail value. Falling birth numbers have adversely affected sales of first and second-stage milks and conversely increased the importance of third-stage milks. Cereals & dry meals constitute the second-largest category, but volumes have declined in the face of growing competition from wet meals. Demand for wet meals, juices, and particularly finger foods has been buoyant, with wider ranges and new products pushing up value sales by 66% since 2011.

Consumer behavior in South Korea has changed over the past two decades, as the country's wealth and status has grown. The South Korean diet has become more westernized and this has increased demand for convenience foods, supported by the entry of foreign retailers into South Korea. Increasing affluence has produced strong demand for sophisticated quality goods and imported baby foods, especially as domestic production has declined. These trends have filtered down into the baby food market, and premium-priced infant formula and wet meals have become popular. Trade sources suggest that most new mothers in South Korea stick to the brand of infant formula recommended to them after birth.

The Baby Food Sector in South Korea, 2018, is an analytical report which provides extensive and highly detailed current and future market trends in the South Korean market.

The report offers -

  • Consumption data based upon a unique combination of industry research, fieldwork, market sizing work and our in-house expertise to offer extensive data about the trends and dynamics affecting the industry
  • Detailed profile of the companies operating and new companies considering entry in the industry along with their key focus product sectors
  • Market profile of the various product sectors with the key features & developments, segmentation, per capita trends and the various manufacturers & brands
  • Overview of baby food retailing with a mention of the major retailers in the country along with the distribution channel
  • Future projections considering various trends which are likely to affect the industry
Companies mentioned: Namyang Dairy Products, Maeil Dairy Industries, IlDong Foodis Co, Pasteur Milk Co Limited (Lotte), Dr Chung’s Food Co Ltd, Nestlé Korea Ltd, Boryung Medience, Ivenet Co. Ltd, LG H&H

Scope
  • All the baby food categories have seen a trend towards organic and premium products.
  • Liquid milks have been available in the South Korean market for some years, and these remain an important niche area. In addition to powder and liquid made from cow’s milk, a number of goat's milk products are also available.
  • Since 2008, organic product sales have shown significant growth, as quality and purity are major concerns for Korean mothers.
  • The market is split into cereals mainly with fruit or vegetables, to which milk is added. Over the last four or five years, there has been a clear swing towards ingredients and away from more traditional products.
  • Traditionally, baby cereals & dry meals have been packaged in cans, but the last few years have seen a proliferation of other pack formats such as tubs, boxes, sachets or flexible plastic sticks.
  • Organic products are making a growing impact in baby meals category, as in milks. The baby meals are packaged in plastic cups and pouches .
  • Baby drinks are packaged in bottles, plastic and glass. The juices are sold in cartons, and all dehydrated teas in boxes.
Reasons to buy
  • Evaluate important changes in consumer behavior and identify profitable markets and areas for product innovation.
  • Analyse current and forecast behavior trends in each category to identify the best opportunities to exploit.
  • Detailed understanding of consumption by individual product categories in order to align your sales and marketing efforts with the latest trends in the market.
  • Investigates which categories are performing the best and how this is changing market dynamics.


Introduction
Executive Summary
Definitions
Background
Birth
The Consumer
Socio-Demographic Trends
Working Women
Breastfeeding Trends
Regulations
Overview
Sector Overview
Manufacturers Shares
Category Analysis
Baby Milks
Baby Cereals & Dry Meals
Meals & Others
Production and trade
Production
Imports
Exports
Company profiles
Namyang Dairy Products
Maeil Dairy Industries
IlDong Foodis Co
Pasteur Milk Co Limited (Lotte)
Other Manufacturers
Distribution
Baby Food Retailing
Economic background
Economic Background
Key Macroeconomic Forecasts
Prospects and forecasts
Birth & Population Projections
Forecast Overview
Future Trend
Appendix
Additional Data Tables
Summary Methodology
About GlobalData
List of Tables
Table 1: Birth & Population Trends, 2007-2017
Table 2: Live Births by City & Province (‘000), 2013-2017
Table 3: Composition of Live Births by Age Group of Mothers, %, 2011-2016
Table 4: Economically Active Women by Age Group, 2011 & 2017
Table 5: Breastfeeding Prevalence, %, 1970-2009
Table 6: Exclusive Breastfeeding Rates by Age of Baby, %, 2000-2012
Table 7: Breastfeeding Rates by Age of Baby, %, 1998/2000, 2007/2008, 2012
Table 8: Sector Size, 2017, & Growth Rates, 2011-2017
Table 9: Baby Food: Manufacturer Shares, Value & Volume, %, 2012-2017
Table 10: Baby Food: Manufacturer Shares by Category, %, 2017
Table 11: Baby Milks: Category Size, 2017
Table 12: Baby Milks: Category Growth, % 2011-2017
Table 13: Baby Milks: Facings Allocation by Type of Packaging, 2017
Table 14: Baby Milk Powder: Facings Allocation by Pack Size, 2017
Table 15: Liquid Baby Milks: Facings Allocation by Pack Size, 2017
Table 16: Baby Milks: Brand Price Positioning Analysis, 2017
Table 17: Baby Milks: Price Progression, Analysis, 2017
Table 18: Baby Milks: Manufacturer Shares, Value & Volume, %, 2012-2017
Table 19: Baby Cereals & Dry Meals: Category Size, 2017
Table 20: Baby Cereals & Dry Meals: Category Growth, % 2011-2017
Table 21: Baby Cereals & Dry Meals: Brand Price Positioning Analysis, 2017
Table 22: Baby Cereals: Facings Allocation by Pack Size, 2017
Table 23: Baby Cereals: Facings Allocation by Pack Type, 2017
Table 24: Baby Cereals & Dry Meals: Manufacturer Shares, 2012-2017
Table 25: Baby Meals & Others: Category Size, 2017
Table 26: Baby Meals & Others: Category Growth, % 2011-2017
Table 27: Wet Baby Meals: Facings Allocation by Type of Packaging, 2017
Table 28: Finger Foods: Facings Allocation by Type of Packaging, 2017
Table 29: Drinks: Facings Allocation by Type of Packaging, 2017
Table 30: Wet Meals: Facings Allocation by Pack Size, 2017
Table 31: Drinks: Facings Allocation by Pack Size, 2017
Table 32: Finger Foods: Facings Allocation by Pack Size, 2017
Table 33: Wet Meals: Brand Price Positioning Analysis, 2017
Table 34: Finger Foods: Brand Price Positioning Analysis, 2017
Table 35: Drinks: Brand Price Positioning Analysis, 2017
Table 36: Baby Meals & Others: Manufacturer Shares, Value & Volume, %, 2012-2017
Table 37: Namyang Dairy Products: Sales & Profit Trends, 2011-2017
Table 38: Maeil Dairy Industries: Financial Highlights, 2011-2017
Table 39: IlDong Foodis Co: Sales Profit Trends, 2010-2015
Table 40: Baby Food: Sales by Outlet Type, % Value, 2010-2017
Table 41: Key Macro-Economic Indicators, 2011-2018
Table 42: Key Macroeconomic Forecasts, 2017-2023
Table 43: Birth & Population Projections, 2011-2023
Table 44: Baby Population, Number of Babies ’000, 2007-2023
Table 45: Baby Food: Market Value, Current Prices, 2011-2017
Table 46: Baby Food: Market Value, Constant Prices, 2011-2017
Table 47: Baby Food: Market Value, US$ Million, 2011-2017
Table 48: Baby Food: Market Volume, Tons, 2011-2017
Table 49: Baby Food: Per Capita Expenditure, Current Prices, 2011-2017
Table 50: Baby Food: Per Capita Expenditure, Constant Prices, 2011-2017
Table 51: Baby Food: Per Capita Expenditure, US Dollars, 2011-2017
Table 52: Baby Food: Per Capita Consumption, Grams, 2011-2017
Table 53: Baby Milks: Category Trends, 2011-2017
Table 54: Baby Milks: Category Segmentation, Value & Volume, 2011-2017
Table 55: Baby Milks - Powder: Brand Price Analysis, 2017
Table 56: Baby Milks - Liquid: Brand Price Analysis, 2017
Table 57: Baby Cereals & Dry Meals: Category Trends, 2011-2017
Table 58: Baby Meals & Others: Category Trends, 2011-2017
Table 59: Imports of Baby Food by Category, Tons, 2012-2017
Table 60: Imports of Baby Food by Category, € ’000, 2012-2017
Table 61: Baby Milks & Cereals: Imports by Country of Origin, 2015-2017
Table 62: Other Baby Food: Imports by Country of Origin, 2015-2017
Table 63: Exports of Baby Food by Category, Tons, 2012-2017
Table 64: Baby Milks & Cereals: Exports by Country of Destination, 2015-2017
Table 65: Other Baby Food: Exports by Country of Destination, 2015-2017
Table 66: Baby Food: Market Value Forecasts, Current Prices, 2017-2023
Table 67: Baby Food: Market Value Forecasts, Constant Prices, 2017-2023
Table 68: Baby Food: Market Value Forecasts, US$ Million, 2017-2023
Table 69: Baby Food: Market Volume Forecasts, Tons, 2017-2023
Table 70: Baby Food: Per Capita Expenditure, Current Prices, 2017-2023
Table 71: Baby Food: Per Capita Expenditure, Constant Prices, 2017-2023
Table 72: Baby Food: Per Capita Expenditure, US$, 2017-2023
Table 73: Baby Food: Per Capita Consumption, Grams, 2017-2023
Table 74: Facings Allocation by Product Type
List of Figures
Figure 1: Baby Food: Sector Size, 2011-2017
Figure 2: Baby Food: Per Capita, 2011-2017
Figure 3: Baby Food: Sector Segmentation, 2017
Figure 4: Baby Food: Manufacturer Shares, Value, 2017
Figure 5: Baby Food: Manufacturer Shares, Volume %, 2017
Figure 6: Baby Food: Manufacturer Shares by Category, % Value, 2017
Figure 7: Baby Milks: Category Trends, 2011-2017
Figure 8: Baby Milks: Per Capita Expenditure & Consumption, 2011-2017
Figure 9: Baby Milks: Per Capita Expenditure & Consumption by Age Group, 2011-2017
Figure 10: Baby Milks: Segmentation, Value and Volume, 2011-2017
Figure 11: Baby Cereals & Dry Meals: Category Trends, 2011-2017
Figure 12: Baby Cereals & Dry Meals: Per Capita Expenditure & Consumption, 2011-2017
Figure 13: Baby Meals & Others: Category Trends, 2011-2017
Figure 14: Baby Meals & Others: Per Capita Expenditure & Consumption, 2011-2017
Figure 15: Baby Food: Sector Size, 2017-2023
Figure 16: Baby Food: Per Capita, 2017-2023
Figure 17: Baby Food: Sector Segmentation, 2023
Figure 18: Baby Food: Category Growth, 2017-2023

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