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2 TABLE OF CONTENTS 1. South Korea Nutraceuticals Industry Introduction 1.1. Government Rules and Regulations 2. South Korea Nutraceuticals Market Size 2.1. By Revenues, By Establishments, Consumer Buying Behavior, South Korea Nutraceuticals Market Segmentation 3.1. By Category, By Types of Establishments, By Distribution Channels, South Korea Nutraceuticals Market Imports and Exports 4.1. South Korea Nutraceuticals Market Imports, South Korea Nutraceuticals Market Imports Segmentation, South Korea Nutraceuticals Market Exports, South Korea Nutraceuticals Market Exports Segmentation, South Korea Nutraceuticals Market Competitive Landscape 5.1. Market Shares of Major Brands in South Korea Nutraceuticals Market, Competitive Landscape of Red Ginseng Market in south Korea 6. South Korea Nutraceuticals Market Trends and Developments 7. South Korea Nutraceuticals Market Future Outlook and Projections, Cause and Effect Relationship Analysis of South Korea Nutraceuticals Industry 8. Macroeconomic Factors Affecting South Korea Nutraceuticals Industry 8.1. Population Aged 50-and Above in South Korea, Household Expenditure on Food and Drugs in South Korea,
3 8.3. Prevalence of Obesity among Those Aged 20 and Above in South Korea, Number of Drugstores in South Korea, Appendix 9.1. Market Definition 9.2. Abbreviations 9.3. Research Methodology Data Collection Methods Approach Variables (Independent and Dependent) Multi Factor Based Sensitivity Model Final Conclusion 9.4. Disclaimer 3
4 LIST OF FIGURES Figure 1: Approval Procedure for Health Functional Food Figure 2: South Korea Nutraceuticals Market Size on the Basis of Revenues in USD Million, Figure 3: South Korea Nutraceuticals Market Size on the Basis of Number of Establishments, Figure 4: South Korea Market Segmentation by Distribution Channels on the Basis of Revenue Contribution in Percentage, Figure 5: South Korea Nutraceuticals Industry Imports by Value and Weight in USD Million and Tones, Figure 6: South Korea Nutraceuticals Industry Exports on the Basis of Value in USD Million, Figure 7: South Korea Red Ginseng Market Size on the Basis of Revenues in USD Million, Figure 8: South Korea Nutraceuticals Industry Future Projections on the Basis of Revenue in USD Million, Figure 9: Above-50 Aged Population in South Korea in Thousand, Figure 10: Household Expenditure on Food and Drugs in South Korea in USD, Figure 11: Obese Population in South Korea in Percentage, Figure 12: Number of Drugstores in South Korea,
5 LIST OF TABLES Table 1: List of 37 Approved Generic Functional Ingredients Table 2: Consumer Buying Behavior, Table 3: South Korea Market Segmentation by Categories on the Basis of Revenues Contribution in Percentage, Table 4: South Korea Market Segmentation by Category on the Basis of Contribution in USD Million, Table 5: South Korea Market Segmentation on the Basis of Number of Different Types of Establishment, Table 6: South Korea Market Segmentation by Distribution Channels on the Basis of Revenue Contribution in USD Million, Table 7: Number of Conformed Cases and Imports in South Korea, Table 8: South Korea Nutraceuticals Industry Imports Segmentation on the Basis of Value of Different Imported Products in Percentage, Table 9: South Korea Nutraceuticals Industry Imports Segmentation on the Basis of Value of Different Imported Products in USD Million, Table 10: South Korea Nutraceuticals Industry Exports Segmentation by Ingredients on the Basis of Contribution in Revenue in Percentage, Table 11: South Korea Nutraceuticals Industry Exports Segmentation by Ingredients on the Basis of Contribution in Revenue in USD, Table 12: Major Companies Operating in the South Korea Nutraceuticals Industry Table 13: Market Shares of Major Brands in South Korea Nutraceuticals Industry on the Basis of Revenues in Percentage, Table 14: Revenues of Major Brands in South Korea Nutraceuticals Industry in USD Million, Table 15: Market Share and Revenues of Korea Ginseng Corporation in Percentage and USD Million, Table 16: Cause and Effect Relationship Analysis between Industry Factors and Expected South Korea Nutraceuticals Industry Prospects 5
6 Table 17: Correlation Matrix of the South Korea Nutraceuticals Industry Table 18: Regression Coefficients Output 6
7 SOUTH KOREA NUTRACEUTICALS MARKET SIZE BY REVENUES, Nutraceuticals industry in South Korea has been gaining impetus from the growing health consciousness amongst the people. The well-being trend has rapidly spread in the urban areas of the country, supported by growing affluence and stretching work shifts. The rising disposable incomes have driven attention of people towards maintenance of fitness and health In 2012, the revenues of the nutraceuticals industry have showcased a continuous growth trajectory in the review period ( ), with a double digit incline registered in the period of The market registered total sales of USD ~ million in 2012, noting a 25.4% increase from The sales of red ginseng nutraceutical products along with vitamins and multivitamins witnessed the highest growth in this year Figure: South Korea Nutraceuticals Market Size on the Basis of Revenues in USD Million, USD Million 5, , , , , , , , ,
8 BY ESTABLISHMENTS, The number of business establishments for health functional food has almost doubled in the span of last six years. There were a total of ~ centers of companies operating in the health functional food sector in 2012, which grew at an annualized rate of 11.4% from ~ in 2006 Figure: South Korea Nutraceuticals Market Size on the Basis of Number of Establishments, Number 1,00, , , , , , , , , , SOUTH KOREA NUTRACEUTICALS MARKET SEGMENTATION BY INGREDIENTS, The market growth of the nutraceuticals industry in South Korea is largely supported by the historical familiarity with herbal medicines and growing consumption of fortified food for health benefits Sales from red ginseng products accounted for a share of ~% in the overall revenues of the nutraceutical products in South Korea 8
9 Although the revenues of red ginseng products have showcased inclining growth, the share has declined over the years, owing to the rising Vitamins and minerals have registered a popularity of other nutraceuticals products. Vitamins rising share in the overall revenues and minerals have registered a rising share in the over the span of , which marked a figure of ~% in 2012 overall revenues over the span of , which marked a figure of ~% in People in South Korea have been including vitamins and other dietary supplements as a part of their dietary routine, which has bolstered the sales of these products in the recent years. Table: South Korea Market Segmentation by Category on the Basis of Contribution in USD Million, Segmentation Red Ginseng Individual recognition products Vitamins and Minerals Aloe Edible Oil Containing Omega-3 Fatty Acid Garcinia cambogia Extract Probiotics Ginseng Dietary Fiber Edible Oil Containing Gama-linolenic Acid Propolis Extract Lutein Green Tea Extracts Spirulina/Chlorella Chitosan/Chito-oligo-saccharide Octacosanol Squalene N-Acetylglucosamine 9
10 Alkoxy-glycerol from Sharks Liver Oil Glucosamine Protein Sawpalmetto extract Coenzyme Q10 Conjugated Linoleic Acid Dietary Fiber(Supplement) Egg and/or Soybean Lecithin Soybean Isoflavone Plum Extracts Essential Fatty Acid Red Rice Fructooligosaccharide Mushroom Chlorophyll Phytosterol/Phytosterolester Haematococcus extract Muco-polysaccharide Protein Yeast Digestive Enzyme Royal Jelly Turtle Pollen Other (embryo, germ oil, eel oil, grape seed oil) Total 10
11 BY DISTRIBUTION CHANNELS, The nutraceuticals products in South Korea are marketed through various channels including specialized stores, hypermarkets, pharmacies, home-shopping, department stores and online retailing The online mode of selling health functional food is gaining importance in the country. Small and medium-sized local importers in South Korea often tend to present their offerings through on online portals to start their business and utilize it as a test bed for imported products. In 2012, the sales through multi-level marketing formed a share of ~% in the overall revenues. The door-to doors selling contributed a share of ~% In 2012, the sales through multi-level marketing formed a share of ~% in the overall revenues in the overall revenues of the nutraceuticals sales. Companies such as Amway, Herbalife and Nu Skin Enterprises are actively engaged in marketing their products through this medium. Table: South Korea Market Segmentation by Distribution Channels on the Basis of Revenue Contribution in USD Million, Distribution Channels Multi level Marketing Specialty Stores Door-to-door (SLM) Departmental Stores TV Home Shopping Others Total 11
12 MARKET SHARES OF MAJOR BRANDS IN SOUTH KOREA NUTRACEUTICALS MARKET, The competitive landscape of South Korea is inhabited by a number of players which hail from various industries including pharmaceuticals, health functional food, and FMCG, of which food and cosmetics manufacturing companies are most common amongst others. The top five manufacturing firms account for more than ~% of the market share, and have multiple brands in the market. These include Amway, Korea Ginseng Corporation, Herbalife, Amorepacific Corporation, Nu Skin and Enterprises. Other major players include CJ Group, Korea Yakult Group, Kwang dong Pharamaceuticlas and Daesang Herbalife and Amway were the leading producers of health functional food products in South Korea in 2012, which together accounted for ~% of the market share, through the sales of their respective brands Table: Market Shares of Major Brands in South Korea Nutraceuticals Industry on the Basis of Revenues in Percentage, Brand Companies Herbalife Nutralite Jung Kwan Jang Amore Pacific Pharmanex CheiljeDang V food Herbalife Amway Korea Ginseng Corporation Amore Pacific Nu Skin Enterprises CJ Group Korea Yakult 12
13 Table: Revenues of Major Brands in South Korea Nutraceuticals Industry in USD Million, Brand Companies Herbalife Nutralite Jung Kwan Jang Amore Pacific Pharmanex CheiljeDang V food Herbalife Amway Korea Ginseng Corporation Amore Pacific Nu Skin Enterprises CJ Group Korea Yakult COMPETITIVE LANDSCAPE OF RED GINSENG MARKET IN SOUTH KOREA Red ginseng products sales contribute highest share in the health and functional foods industry of South Korea. The market of red ginseng products has grown from USD million in 2006 to USD ~ million in 2012 Korea Ginseng Corporation (KGC) has accounted for the largest share of the market over the years. The company has positioned itself as a premium brand, supported by its more than 100- year old history and legitimacy of 6-year-old Red Ginseng root Figure: South Korea Red Ginseng Market Size on the Basis of Revenues in USD Million, USD Million 1, , ,
14 Table 1: Market Share and Revenues of Korea Ginseng Corporation in Percentage and USD Million, Years Market Share in Percentage Revenues in USD Million SOUTH KOREA NUTRACEUTICALS MARKET FUTURE OUTLOOK AND PROJECTIONS, The rich economy of South Korea, characterized with low unemployment and advancing disposable incomes, is expected to act as the backbone for the rising consumption of fortified Encouraged majorly by the multichannel strategies of the major players, the nutraceuticals industry of South Korea is expected to map revenues worth USD ~ million by 2017 growing at a CAGR of 14.8% from 2012 food and beverages in the country, which are generally found to be higher priced than their normal substitutes. The growing interest of consumers in health and wellness food is expected to create new trends in the consumption patterns Encouraged majorly by the multi-channel strategies of the major players, the nutraceuticals industry of South Korea is expected to map revenues worth USD ~ million by 2017 growing at a CAGR of 14.8% from
15 Figure: South Korea Nutraceuticals Industry Future Projections on the Basis of Revenue in USD Million, USD Million 10, , , , , , , , , ,
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