Organic Packaged Food in South Korea

PROSPECTS

Consumer preference for convenience boosts organic baby food excluding milk formula

In South Korea, organic baby food (excluding milk formula) is very common and somewhat essential for consumers to be aware of. Value sales of organic milk formula declined for the third consecutive year in 2018, just as overall consumption of milk formula had continually decreased, but organic prepared baby food and other baby food categories maintained positive value growth, as more consumers prefer the convenience of prepared baby food.

Organic shelf-stable milk is the only increasing category within drinking milk

Organic milk positioned as children’s drinking milk in only 120ml-180ml formats is continually performing well. Maeil Dairies introduced organic shelf-stable drinking milk with a smaller pack size for children, and this created a sensation because it is both shelf stable and organic.

COMPETITIVE LANDSCAPE

Maeil Dairies keeps solid leading position without new challengers

Maeil Dairies gained value share gradually over the review period, and dominated value sales in the organic packaged food category in 2018. The company is the leading player in organic baby food and organic dairy with Goong and Sangha Mokjang brands.

High prices and consumer distrust are factors that will prevent new entries and higher growth

Firstly, after the insecticide/egg issue in South Korea, consumers do not trust organic certification of food. Hence, manufacturers try to change the expression of organic to free range or animal welfare food, etc.

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