Business Monitor International


South Korea Food & Drink Report

Published 27 March 2014

  • 105 pages
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$1,295.00
South Korea Food & Drink Report

BMI View:  South Korea's relatively strong Q114 real GDP growth print has prompted us to upgrade our 2014 growth forecast to 3.5% from 3.0% previously. Korean exporters will continue to ride on the economic recovery in the developed markets for now while a recovery in real estate sector may support construction investment. That said, downside pressure is still likely to stem from China's slowing economy, elevated household debt levels, as well as risks of a continued contraction in business investment. 

Headline Industry Data (Local Currency)

  • 2014 per capita food consumption = +2.3%; forecast CAGR 2014 to 2018 = +3.8%.

  • 2014 alcoholic drink value sales = +2.5%; forecast CAGR 2014 to 2017 = +4.2%.

  • 2014 soft drink value sales = +4.3%; forecast CAGR 2014 to 2018 = +4.7%.

  • 2014 mass grocery retail sales = +5.7%; forecast CAGR 2014 to 2018 = +7.2%.

Key Industry Trends And Developments

AB InBev Re-acquires Oriental Brewery : In spring 2014 Anheuser-Busch InBev successfully completed the acquisition of leading Korean brewer Oriental Brewery in a deal worth USD5.8bn. The acquisition returns OB to the AB InBev portfolio after AB InBev sold the company in July 2009 to private equity group KKR. Once OB has been fully re-integrated into AB InBev, the company expects to drive premium growth by maximising the combined portfolios of leading beer brands and to achieve improved efficiencies through best-practice sharing. AB InBev also plans to leverage its global platform to export OB brands more widely.

South Korea To Remain Ahead I n Online Food Retailing Stakes : We believe South Korea will continue to lead the way in online food retailing in Asia. According to Kantar Worldpanel, online sales in the country already accounted for 10.2% of Fast Moving Consumer Goods (FMCG) in 2013, compared with 4.9% and 3.9% in the UK and France respectively. High internet penetration and a large number of tech-savvy consumers have ensured a broad-based use of...

Table of Contents

BMI Industry View
7
SWOT
9
Food
9
Drink
11
Mass Grocery Retail
13
Industry Forecast
15
Consumer Outlook
15
Food
17
Food Consumption
17
Table: Food Consumption Indicators - Historical Data & Forecasts, 2011-2018
17
Canned Food
18
Table: Canned Food Volume/Value Sales - Historical Data & Forecasts, 2011-2018
18
Confectionery
19
Table: Confectionery Value/Volume Sales - Historical Data & Forecasts, 2011-2018
19
Table: Sugar Confectionery Production & Trade - Historical Data & Forecasts, 2011-2018
20
Meat
20
Table: Processed Meat Volume Sales, Production & Trade - Historical Data & Forecasts, 2011-2018
20
Fish
21
Table: Preserved Fish Volume Sales, Production & Trade - Historical Data & Forecasts, 2011-2018
21
Oils And Fats
22
Table: Oils & Fats Volume Sales, Production & Trade - Historical Data & Forecasts, 2011-2018
22
Drink
25
Hot Drinks
25
Table: Hot Drinks Value Sales - Historical Data & Forecasts, 2011-2018
25
Alcoholic Drinks
26
Table: Alcoholic Drinks Value/Volume Sales - Historical Data & Forecasts, 2011-2018
27
Soft Drinks
27
Table: Soft Drinks Value Sales - Historical Data & Forecasts, 2011-2018
28
Table: Carbonates Volume Production & Trade - Historical Data & Forecasts, 2011-2018
28
Table: Bottled Water Trade - Historical Data & Forecasts, 2011-2018
29
Mass Grocery Retail
29
Table: Mass Grocery Retail Sales by Value, Historical Data and Forecasts, 2011-2018
31
Table: Retail Sales By Format
31
Trade
31
Table: Food & Drink Trade Indicators - Historical Data & Forecasts, 2011-2018
32
Macroeconomic Forecasts
33
Economic Analysis
33
Developed Markets, Investment Spending To Support Growth
34
Outlook Not All Rosy
35
Table: Economic Activity (South Korea 2009-2018)
36
Industry Risk Reward Ratings
37
Asia Pacific Risk/Reward Ratings
37
Table: Asia Pacific Food & Drink Risk/Reward Ratings Q314
39
Table: Asia Pacific Food & Drink Risk/Reward Sub-Factor Ratings Q314 (scores out of 10)
42
South Korea Risk/Reward Ratings
43
Market Overview
45
Food
45
Agriculture
45
Organics
45
Food Processing
46
Drink
47
Alcoholic Drinks
47
Soft Drinks
47
Mass Grocery Retail
48
Table: Estimated Number Of MGR Outlets
50
Table: MGR Sales Value (USDbn)
51
Table: MGR Sales Value (KRWbn)
51
Table: Average Sales Per Outlet By Format, 2010
51
Industry Trends And Developments
52
Food
52
Key Industry Trends And Developments
52
Drink
60
Key Industry Trends And Developments
60
Mass Grocery Retail
66
Key Industry Trends And Developments
66
Competitive Landscape
73
Table: Key Players In South Korea's Food Sector
73
Table: Key Players In South Korea's Drink Sector
74
Table: Key Players In South Korea's MGR Sector
75
Company Profile
76
Maiel Dairy Industry
76
Nong Shim
78
Hite Brewery
81
Oriental Brewery
84
Lotte Shopping
86
Samsung Tesco HomePlus
89
Global Industry Overview
92
Table: Food And Drink Core Views
104
Demographic Forecast
105
Table: South Korea's Population By Age Group, 1990-2020 ('000)
106
Table: South Korea's Population By Age Group, 1990-2020 (% of total)
107
Table: South Korea's Key Population Ratios, 1990-2020
108
Table: South Korea's Rural And Urban Population, 1990-2020
108
Glossary
109
Food & Drink
109
Mass Grocery Retail
109
Methodology
111
Industry Forecast Methodology
111
Sector-Specific Methodology
112
Sources
112
Risk/Reward Rating Methodology
113
Table: Food & Drink Risk/Reward Rating Indicators
114
Table: Weighting
115

The South Korea Food & Drink Report features Business Monitor International (BMI)'s market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.

BMI's South Korea Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in South Korea.

Key Benefits

  • Benchmark BMI's independent food and drink industry forecasts for South Korea to test other views - a key input for successful budgeting and strategic business planning in the Korean food and drink market.
  • Target business opportunities and risks in South Korea through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, and views, covering food and drink manufacturing and consumption and the retail market.

Business Environment Rankings

BMI's Food & Drink Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors, food and drink manufacturers and mass grocery retailers.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the food, drink and mass grocery retail sectors, and within the broader political, economic and business environment.

Food Forecasts

BMI's food chapter is divided into sections such as Meat, Fish, Confectionary, Dairy and Canned Foods, and provides insight into a market's food industry, centred on a forecast to end-2018 for the sector. The chapter includes the following elements:

Industry Forecast Scenario - Historical data series and forecasts to end-2018 for growth of key indicators within a market's food industry. Including consumption, food consumption as % of GDP, canned food sales, confectionery sales and food and drink imports and exports, among others.

Industry Developments - A summary of corporate developments, including news on M&As, FDI, expansions, closures and financial results, in addition to analysis and explanation of the latest industry events and how these could influence further investment.

Market Overview - An overview of the structure of the market, introducing the key players and discussing underlying trends.

Drink Forecasts

Segmented the same way as BMI's food chapter, the drink section provides insight into the market's drink industry, centred on a forecast to end-2018 for the sector. Forecast indicators include alcoholic and soft drink sales by value, volume and sub-sector and tea and coffee sales, among others.

Mass Grocery Retail Forecasts

Segmented the same way as BMI's food and drink chapters, the mass grocery retail section provides insight into a market's grocery retail industry, centred on a forecast to end-201 for the sector. Forecast indicators include mass grocery retail sales by format (including supermarkets, hypermarkets, convenience and discount stores) and a breakdown for the organised retail sector versus the traditional sector, among others.

Competitive Landscape & Profiles

Illustration of the industry via rankings tables comparing revenues, number of outlets and number of employees. BMI analyses each company's market position, business strategies and investment potential.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc