Aftermath of Premiumisation: Analysis of Organic Packaged Food in South Korea: ken Research
Posted on 14 July 2017 by KenResearch Food and Beverage,
Owing to the increased awareness among people about the health benefits of organic food, the global organic packaged food market is expected to grow significantly in the coming years. This substantial growth in the market is attributed to the increasing health conscious nature of people of the world.
South Korean organic packaged food market grew at a promising rate of about 4% in 2016. Organic baby food, one of the important categories of the organic packaged food market, is largely driven by premiumisation. A growing number of parents in order to give the best quality food to their infants not only look for the baby food made of organic ingredients but also do not mind shelling extra money for premium products to ensure a certain level of quality of the baby food they are purchasing. This results in giving a boost to the sales of organic baby foods and thus driving overall growth in the market.
In the year 2016, Maeil Dairies led the organic packaged food market in South Korea with a market share of about 38% in terms of value. The main product offering of the company is organic baby food and it is positioned very well in the market and is looking to develop health and wellness market in the coming years.
The report titled “Organic Packaged Food in South Korea”, provides an understanding of the shape and size of the organic packaged food market in South Korea. It predicts the trajectory that the market is expected to follow in the near future and identifies the key sectors that are driving the growth in the market. Providing a picture of the organic packaged food market in detail, the report also lays forth the competitive landscape of the market by presenting historical market shares as well as forecasts for them, key players and their shares, leading brands along with their shares and distribution data.
It is expected that the organic packaged food industry is going to increase at rate of about 2% compounded annually at constant 2016 prices for the forecast period. While the sales of the organic dairy products such as milk, baby cheese etc. are expected to continue their downward trend. This will result from a lower birth rate of South Korea, which is already declining and since majority of the organic dairy products are targeted at children; their sales will keep on declining. Due to declining sales in this category, it is not expected that any new products will be launched in the organic milk and cheese categories in the near future. Thus, no product innovation is expected in these categories.
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