Dietary Supplements in South Korea

PROSPECTS

Dietary supplements yet to reach maturity in South Korea

Dietary supplements saw another year of strong current value growth in 2019. However, the category has still not reached maturity, and is still developing in terms of product types and segmentation.

Focus on ingredients set to gain importance

Domestically-manufactured products lack any type of claim, such as non-GMO or suitable for vegetarians. Rather, consumers are more focused on origin and ingredients.

Non-store retailing continues to develop thanks to wide variety and low prices

Non-store retailing is crucial in terms of brand penetration in dietary supplements. As dietary supplements are consumed on a daily basis, more consumers are using internet retailing for routine, habitual purchases and homeshopping for bulk purchases.

COMPETITIVE LANDSCAPE

Domestic players and direct sellers lead the way, with opportunities for private label

Along with direct selling companies, domestic manufacturers lead dietary supplements in South Korea. The top two players in dietary supplements in 2019 were all domestic: Korea Ginseng Corp and Chong Kun Dang Healthcare Corp.

Strong growth for Chong Kun Dang Healthcare Corp thanks to probiotic supplements

The remarkable double-digit growth of Chong Kun Dang Healthcare Corp over the period 2016-2019 was mostly due to its strong and rising position within probiotic supplements, although it also has products in ginseng, fish oils/omega fatty acids, glucosamine and tonics. The company’s probiotic supplement has the sub-brand Lacto-Fit, and its product portfolio is designed to meet the needs of all age groups and genders.

Yuhan’s New Origin reflects global trends

Whilst Yuhan had a developed OTC portfolio, it lacked a strong brand in vitamins and dietary supplements. Thus, the company launched the New Origin brand in 2018, supported by a concept store under the same name.

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