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The Baby Food Market in South Korea 2017

The Baby Food Market in South Korea 2017

Summary

The baby food market experienced negative growth in South Korea. The decline in number of births in 2013, 2014, and 2016 brought about a corresponding drop in baby food consumption. Overall consumption fell by 5.5% and retail sales increased by 13.6% in current price terms and 2.1% at constant prices between 2010 and 2016. Baby Milk dominates, claiming over 60.9% of the total market. Cereals & dry meals have fared less well in terms of volume sales, registering 21.9% and wet meals & others sector remains small with 17.2%. The decline in the birth rate in future will inevitably have an impact on overall volume in the market. Overall, the market is therefore expected to grow by only 2.3% in volume and by 19.5% in value by 2022.

“The Baby Food Market in South Korea 2017” is an analytical report by GlobalData which provides extensive and highly detailed current and future market trends in the South Korean market.

What else does this report offer?

  • 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.
Scope
  • Overall consumption fell by 5.5% and retail sales increased by 13.6% in current price terms and 2.1% at constant prices between 2010 and 2016.
  • Meals & others is the fastest growing baby food category, comprising 17.2% of overall baby food volumes by 2016.
  • The vast majority of baby food sold in Korea is manufactured within the country.
  • Multinational representation is very low in South Korea, due mainly to the supremacy of the two leading domestic suppliers, Namyang and Maeil.
  • Sales via e-commerce have expanded rapidly in recent years as many overseas brands are available online, and an increasing number of mothers are buying these products.
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: Market Sectors
    • Definitions: Terminology
  • Background to the Market
    • Births - Live Birth Rates: The crude birth rate continues to tumble, resulting in only a little over 400,000 births in 2016
      • Table Birth & Population Trends, 2006-2016
    • Births - Birth Rates by Region: In 2015 45% of births occurred in Seoul and the surrounding province of Gyeonggi
      • Table Live Births by City & Province ('000), 2013-2015
    • Births - Measures to Boost the Birth Rate: The government continues to introduce new measures to try and boost the birth rate, but with little effect
    • The Consumer: The South Korean middle class is expanding - causing an increase in the number of consumers who can afford baby food
    • Socio-demographic Trends - Family Structure: The average age of women at first marriage rose to 30 in 2015
      • Table Marriage & Divorce Trends, 1995-2016
    • Socio-demographic Trends - Births by Age of Mother: The average age of mothers is increasing, with 70% of births now being to women aged 30 to 40
      • Table Composition of Live Births by Age Group of Mothers, %, 2010-2015
    • Working Women - Female Employment: 60% of women in the main childbearing and child-rearing age bracket are in employment
      • Table Economically Active Women by Age Group, 2011 & 2016
    • Working Women - Legislation: The government is encouraging companies to offer women improved childcare options, but most remain inflexible
    • Regulations: The government has banned the promotion of first and second stage milks, but this ban has had limited effect
    • Regulations: Few of the provisions of the WHO's International Code on the marketing of breast milk substitutes are enshrined in law
    • Breastfeeding Trends - Promotion: Breastfeeding rates are hampered by little promotion in maternity wards and a lack of a breastfeeding culture
    • Breastfeeding Trends - Prevalence: Breastfeeding prevalence has increased significantly from low levels in 2000, but in 2012 prevalence declined
      • Table Breastfeeding Prevalence, %, 1970-2009
      • Table Exclusive Breastfeeding Rates by Age of Baby, %, 2000-2012
    • Breastfeeding Trends - Prevalence: Exclusive breastfeeding rates are low and drop off significantly as the baby ages
      • Table Breastfeeding Rates by Age of Baby, %, 1998/2000, 2007/2008, 2012
  • Market Overview
    • Market Overview: Consumption in the South Korean baby food market stood at 20,422 tons in 2016 with sales worth \768 billion (US$674 million)
    • Market Overview: The meals & others category has been the star performer while other sectors have witnessed declines in volume
      • Table Market Size, 2016, &Growth Rates, 2010-2016
    • Manufacturer Shares: The market is dominated by the four leading domestic manufacturers with 80% in 2016, but has become less concentrated
      • Table Baby Food: Manufacturer Shares, Value, %, 2010-2016
    • Manufacturer Shares: Namyang was the leading manufacturer in 2016 with 34% of sales by value and 37% by volume
      • Table Baby Food: Manufacturer Shares by Sector, %, 2016
    • The Future: Government policies to increase the birth rate will have limited success, and volume growth will be minimal
      • Table Baby Food: Manufacturer Shares by Sector, % value, 2016
  • Sector Analysis
    • Sector Analysis: Baby Milks
    • Milks Sector Trends: The baby milks market has contracted in constant price and volume terms
    • Milks Per Capita Trends: Average per capita consumption of baby milks has risen by 3.8% between 2010 and 2016
    • Milks Segmentation: The infant formula sector in Korea is unusual, with the international first stage segment split into two sub-segments
    • Milks Segmentation: Based on international definitions, third stage milks have witnessed strong growth
    • Milks Segmentation: There is a large variation in the pricing with organic, special dietary, goats' milk, and imported offerings being the most expensive
      • Table Baby Milk Powder: Brand Price Positioning Analysis, 2016
    • Milks Segmentation: Nearly all milks retail at between US$25 and US$50 per kg
      • Table Baby Milk Powder: Brand Price Positioning Analysis, 2016
    • Milks Segmentation: Baby Love Expert (Namyang) and Emart/Pasteur Premium are the lowest-priced products on the market
      • Table Baby Milk Powder: Brand Price Positioning Analysis, 2016
    • Milks Segmentation: Liquid milks are competitive with milk powder on a likefor-like price basis
      • Table Liquid Baby Milks: Brand Price Positioning Analysis, 2016
    • Milks Segmentation: Cans remain the dominant packaging format for baby milks
      • Table Baby Milks: Facings Allocation by Type of Packaging, 2016
    • Milks Segmentation: The most common pack size is 800g due to the price advantages of buying in bulk
      • Table Liquid Baby Milks: Facings Allocation by Pack Size, 2016
      • Table Baby Milk Powder : Facings Allocation by Pack Size, 2016
    • Milks Manufacturer Shares: Namyang leads, with Maeil close behind in terms of value
      • Table Baby Milks: Manufacturer Shares, Value & Volume, %, 2010-2016
    • Milks Brands: Namyang's Imperial Dream XO is the best-selling range in Korea
    • Sector Analysis: Cereals & Dry Meals
    • Cereals & Dry Meals Sector Trends: Total volumes declined from 2010 to 2016, ending the period 20% below 2010 levels
    • Cereals & Dry Meals Per Capita Trends: Per capita consumption has fallen by 9.5% over the period from 2010 to 2016
    • Cereals & Dry Meals Segmentation: Dry meals make up the bulk of sales, and prices vary widely according to product type
      • Table Baby Cereals & Dry Meals: Brand Price Positioning Analysis, 2016
    • Cereals & Dry Meals Segmentation: Jars are now the most common pack type in-store
      • Table Baby Cereals: Facings Allocation by Pack Size, 2016
    • Cereals & Dry Meals Manufacturers & Brands: Namyang leads the sector, ahead of IlDong Foodis
      • Table Baby Cereals & Dry Meals: Manufacturer Shares, Value & Volume, %, 2010-2016
    • Sector Analysis: Baby Meals & Others
    • Baby Meals & Others Sector Trends: Meals & others is the fastest growing baby food category, comprising 17.2% of overall baby food volumes by 2016
    • Baby Meals & Others Per Capita Trends: Per capita consumption of baby meals and others has grown by 66% between 2010 and 2016
    • Baby Meals & Others Segmentation: Wet meals dominate, but the product offering in drinks and finger foods is proliferating
    • Baby Meals & Others Segmentation: Imported organic meals retail at premium prices
      • Table Wet Meals: Brand Price Positioning Analysis, 2016
    • Baby Meals & Others Segmentation: Drinks prices range from US$3.80 to US$16.93 per liter
      • Table Drinks: Brand Price Positioning Analysis, 2016
    • Baby Meals & Others Segmentation: Prices of finger foods differ widely depending on product format
      • Table Finger Foods: Brand Price Positioning Analysis, 2016
    • Baby Meals & Others Segmentation: Packaging of meals & other baby food products varies by segment
      • Table Wet Baby Meals : Facings Allocation by Type of Packaging, 2016
      • Table Finger Foods : Facings Allocation by Type of Packaging, 2016
      • Table Drinks : Facings Allocation by Type of Packaging, 2016
    • Baby Meals & Others Segmentation: Small sizes dominate in meals and drinks segments, with multipacks a feature of both sectors
      • Table Wet Meals: Facings Allocation by Pack Size, 2016
      • Table Drinks: Facings Allocation by Pack Size, 2016
    • Baby Meals & Others Segmentation: The broad variety of products in the finger foods segment is reflected in the range of pack sizes available
      • Table Finger Foods: Facings Allocation by Pack Size, 2016
    • Baby Meals & Others Manufacturer Shares: Maeil dominates with almost half the market
      • Table Baby Meals & Others: Manufacturer Shares, Value & Volume, %, 2010-2016
  • Production and Trade
    • Production: The vast majority of baby food consumed in South Korea is produced domestically
    • Imports: Germany, New Zealand and Australia are the leading sources of baby food imports
    • Exports: China is now by far the most significant destination for South Korean baby food exports
  • Company Profiles
    • Company Profiles: The baby food market is dominated by four domestic companies: Namyang, Maeil, IlDong Foodis, and Pasteur (Lotte)
    • Company Profiles: Namyang Dairy Products
      • Table Namyang Dairy Products: Sales & Profit Trends, 2010-2016
    • Company Profiles: Maeil Dairy Industries
      • Table Maeil Dairy Industries: Financial Highlights, 2010-2016
    • Company Profiles: IlDong Foodis Co
      • Table IlDong Foodis Co: Sales Profit Trends, 2010-2015
    • Company Profiles: Pasteur Milk Co Limited (Lotte)
    • Company Profiles: Other Manufacturers
  • Distribution
    • Retail Structure: The majority of food retail sales in South Korea occur through the hypermarket and supermarket channel
      • Table Packaged Food Sales by Channel, \ Billion, 2009-2015
    • Baby Food Retailing: The modern grocery sector accounts for the majority of baby food sales, but internet sales are growing very quickly
      • Table Baby Food: Sales by Outlet Type, % Value, 2008-2016
  • Economic Background
    • Economic Background: Economic growth has slowed down but remains fairly buoyant
      • Table Economic Indicators, 2010-2016
    • Key Macro-economic Forecasts: Consumer price growth is forecast at around 2.1% yearly over the forecast period and annual real GDP at 2.9%
      • Table Key Macro-Economic Forecasts, 2016-2022
  • Prospects and Forecasts
    • Birth and Population Projections: The crude birth rate is forecast to continue to decline
      • Table Birth & Population Projections, 2010-2022
    • Forecast Overview: The baby food market is forecast to stand at 20,892 tons and be worth \ 917 billion by 2022
    • Future Trends: Very little overall volume growth is expected, although the wet meals & others category should perform very well
  • Appendix
    • Appendix - The Baby Population: The infant population aged 0-3 years declined by 5.7% between 2006 and 2016
      • Table Baby Population, Number of Babies ('000), 2005-2022
    • Appendix - Market Value: At current prices, the overall baby food market value in South Korea reached \767.7 billion in 2016
      • Table Baby Food: Market Value, Current Prices, 2010-2016
    • Appendix - Market Value: In constant price terms, the market has scarcely progressed in recent years
      • Table Baby Food: Market Value, Constant Prices, 2010-2016
    • Appendix - Market Value: The market reached US$674 million in 2016, with strong growth in meals & others counterbalancing slow growth in milks
      • Table Baby Food: Market Value, US$ Million, 2010-2016
    • Appendix - Market Volume: Consumption reached a high of 22,927 tons in 2012 but has fallen to 20,422 tons in 2016 following a decline in the birth rate
      • Table Baby Food: Market Volume, Tons, 2010-2016
    • Appendix - Per Capita Expenditure: Per capita expenditure has shown overall growth of 29% in current prices between 2010 and 2016
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2010-2016
    • Appendix - Per Capita Expenditure: Expenditure has been rising in real terms, with prices rising across the board
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2010-2016
    • Appendix - Per Capita Expenditure: Between 2010 and 2016, per capita expenditure increased by 31% to US$1,629
      • Table Baby Food: Per Capita Expenditure, US$ Dollars Prices, 2010-2016
    • Appendix - Per Capita Consumption: Meals & other baby food have shown the highest increase in per capita consumption between 2010 and 2016
      • Table Baby Food: Per Capita Consumption, Grams, 2010-2016
    • Appendix - Milks: The baby milks market has contracted in constant price and volume terms
      • Table Baby Milks: Sector Trends, 2010-2016
    • Appendix - Milks: Third stage milks have grown , while first and second stage milks and special formulae have declined in volume terms
      • Table Baby Milks: Sector Segmentation, Value & Volume, 2010-2016
    • Appendix - Milks: There is a large variation in the pricing with organic, special dietary, goats' milk, and imported offerings being the most expensive
      • Table Baby Milks - Powder: Brand Price Analysis, 2016
    • Appendix - Milks: Domestic manufacturers Maeil and Namyang offer baby formula products at various price points
      • Table Baby Milks - Powder: Brand Price Analysis, 2016
    • Appendix - Milks: Liquid milks are price-competitive with powder formula
      • Table Baby Milks - Liquid: Brand Price Analysis, 2016
    • Appendix - Cereals & Dry Meals: Total volumes declined from 2010 to 2016, ending the period 20% below 2010 levels
      • Table Baby Cereals & Dry Meals: Sector Trends, 2010-2016
    • Appendix - Meals & Others: Meals & others is the fastest growing baby food category, comprising 17% of baby food volumes in 2016, up from 11% in 2010
      • Table Baby Meals & Others: Sector Trends, 2010-2016
    • Appendix - Imports: Germany and New Zealand are the leading sources of baby food imports
      • Table Milk & Other Infant Food: Origin of Imports, Tons, 2011-2015
      • Table Milk & Other Infant Food: Origin of Imports, US$'000, 2011-2015
    • Appendix - Exports: China is by far the most significant destination for South Korean baby food exports
      • Table Milk & Other Infant Food: Export Destinations, Tons, 2011-2015
      • Table Milk & Other Infant Food: Export Destinations, US$ `000, 2011-2015
    • Appendix - Value Forecasts: At current prices, South Korea's baby food market is forecast to reach \917 billion by 2022
      • Table Baby Food: Market Value Forecasts, Current Prices, 2016-2022
    • Appendix - Value Forecasts: The market is forecast to advance by 5% in real price terms between 2016 and 2022, although the cereals sector will slump
      • Table Baby Food: Market Value Forecasts, Constant Prices, 2016-2022
    • Appendix - Value Forecasts: South Korea's baby food market is forecast to grow by 19.5% in value terms between 2016 and 2022
      • Table Baby Food: Market Value Forecasts, US$ Million, 2016-2022
    • Appendix - Volume Forecasts: The baby food market is forecast to show only 2.3% overall growth in volume terms from 2016 to 2022
      • Table Baby Food: Market Volume Forecasts, Tons, 2016-2022
    • Appendix - Per Capita Forecasts: Per capita expenditure is forecast to rise to \2,177 by 2022
      • Table Baby Food: Per Capita Expenditure, Current Prices, 2016-2022
    • Appendix - Per Capita Forecasts: In constant price terms, per capita expenditure is forecast to increase only marginally
      • Table Baby Food: Per Capita Expenditure, Constant Prices, 2016-2022
    • Appendix - Per Capita Forecasts: Per capita expenditure is forecast to rise by 17% from 2016 to 2022
      • Table Baby Food: Per Capita Expenditure, US$ Dollars, 2016-2022
    • Appendix - Per Capita Forecasts: Fuelled by strong growth in the meals & others sector, per capita consumption is set to reach 49.6kg
      • Table Baby Food: Per Capita Consumption, Grams, 2016-2022
    • Appendix - Storechecks: milks were the most widely available products (43% of facings), but finger foods were also well represented, at 21% of facings
      • Table Facings Allocation by Product Type
    • Summary Methodology

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