Baby Food in South Korea

PROSPECTS

Contracting birth rate results in ongoing negative performance of milk formula

While the number of newborn babies is continuing to decrease, so are sales of milk formula, despite the introduction of premium brands. Liquid milk formula is decreasing at a faster rate than powder milk formula, as it is unable to capitalise on the growing up stage, as more babies are rapidly moving on to fresh milk once they reach the age of one.

Strong growth of prepared baby food

Prepared baby food recorded double-digit growth in 2019. This category benefits from convenience, with parents opting for packaged prepared baby food and home delivery service over home-made baby food.

Manufacturers specifically cater to children producing high quality products in attractive packaging

Manufacturers are increasingly innovating by creating products that target children. Many are focusing on extending the consumer base outside the usual context to make up for the declining birth rate.

COMPETITIVE LANDSCAPE

Internationals gain ground thanks to their global renown

Maeil Dairies maintained its leading position in 2019 due to the good performance of prepared baby food. As a traditional local baby food brand, prepared baby food produced in stand-up pouches are highly convenient and are considered to be of good quality.

Ongoing share losses for Namyang Dairy Products linked to family scandal

Namyang Dairy Products continued to lose value share in 2019. The company and many of its suppliers were damaged by a drug scandal that affected Hwang Ha Na, the only granddaughter of the company’s founder.

Growing share for Aptamil and Novlac

Aptamil and Novlac achieved value share gains in 2019 by launching in South Korea through domestic distributors. Consumer preference for premium brands regardless of their higher unit prices has grown which in turn has boosted sales of imported milk formula brands, often at the expense of domestic brands.

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