K-food shifts focus to US hypermarkets, Chinese 'punk wellness' trend - The Korea Times

K-food shifts focus to US hypermarkets, Chinese 'punk wellness' trend

A customer shops in a Kroger grocery store in Houston, Aug. 15, 2022. AFP-Yonhap

A customer shops in a Kroger grocery store in Houston, Aug. 15, 2022. AFP-Yonhap

Gov't reshapes global export map

The government has reset its strategy in order to accomplish this year’s K-food exports goal of $16 billion, setting specific goals for different export markets.

With exports having reached $8.25 billion as of the end of July, and instant noodles alone accounting for $1 billion of the total, the Ministry of Agriculture, Food and Rural Affairs said on Thursday that the second half of the year is “the last opportunity to determine whether the goal is accomplished or not.”

Planned measures range from expanding exports and catering to the needs of overseas markets to providing financial support for Korean exporters and responding swiftly to non-tariff barriers in export markets. Plans were finalized at the third meeting of a private-public Korean food export committee meeting in Seoul, which was joined by officials from eight ministries, representatives of major companies including CJ, Samyang Foods, Daesang and Nongshim, and officials from agencies related to agriculture, fresh produce exports and tourism promotion.

The updated export measures have been recalibrated to be region-specific. In the United States, which is Korea's largest market for food exports, the goal is to expand from stores catering to Asian communities to include mainstream supermarkets including H.E.B., Kroger and Target. Authorities said that 67 product types manufactured by 25 firms will also be on shelves at Costco warehouse stores in the U.S. by the end of the year.

In China, which is Korea's second-largest market food exports, the government has pointed to the country’s rising “punk wellness” trend as a market barometer. The craze involves engaging in health-maintenance practices while continuing habits considered unhealthy. Tmall, Jingdong, TikTok and Temu have been designated as key retail platforms in the country for selling Korean instant foods and health supplements. Officials said they will also introduce a new logistics fulfillment system that will be enabled nationwide within three days.

Visitors crowd the Buldak Splash Campaign at Flatiron Plaza in Manhattan in this October 2024 photo. Courtesy of Samyang Foods

In Southeast Asia, Vietnam-based Korean-owned retailer K-Market has become a main partner, sharing its logistics centers in Hanoi and Ho Chi Minh City with Korean exporters to facilitate distribution of imported items to Vietnam as well as neighboring nations.

Halal certification will be further strengthened for products exported to Muslim markets in Indonesia and Malaysia, with Korean companies targeting an international halal showcase event later this month and a halal consumer festival in Malaysia in October. In Singapore, exports of Korean beef and Jeju pork will be expanded in response to growing demand for premium Korean meat.

SIAL Paris, one of the largest international food shows, will see the largest-ever number of 89 Korean firms participate and promote their products in the European market. Frozen dumplings and poultry products like boneless fried chicken have been designated key items.

Convenience stores will be major hubs for exports to Central Asia. BGF Retail’s CU stores now have over 600 outlets in Mongolia and has expanded to Kazakhstan, while GS Retail’s GS25 is also expanding in Mongolia, selling instant noodles, gimbap and other precooked meals. To help exports to Russia’s geographically expansive territory, the government will support firms deploying cold chain logistics.

Minister of Agriculture, Food and Rural Affairs Song Mi-ryung, left, joins the third private-public K-food export committee meeting in Seoul, Thursday. Courtesy of Ministry of Agriculture, Food and Rural Affairs

For exporters hoping to expand to the Middle East, officials will launch a cold-chain pooling business for companies through the Khor Fakkan Port in the United Arab Emirates to secure alternative logistics routes to the region. Beyond the UAE, the government has designated Saudi Arabia as the next promising market, focusing on the Saudi Food Show, the country’s largest food trade event, held at Jeddah Superdome later this month.

Korean street foods like "tteokbokki" (rice cakes simmered in sweet and spicy sauce) will be designated as strategic items for Central and South America, where relatively younger consumers dominate the markets.

Exports by volume have increased from previous years. The U.S. led with $1.18 billion, up 9.8 percent, followed by China with $940 million, up 6.7 percent. Middle East countries in the Gulf Cooperation Council, Latin America and Europe also rose 33.2 percent, 24.4 percent and 18.9 percent, respectively.

“The second half of the year is when shipping of fresh agricultural products begins and global consumption expands significantly with events like Thanksgiving Day and Black Friday, making the period a critical time that will determine this year’s export performance,” Minister of Agriculture, Food and Rural Affairs Song Mi-ryung said.

“Relevant ministries, agencies and the private sector will work together to sustain the achievements of the first half of the year, and we will concentrate all our capabilities to ensure that K-food expands across the globe and becomes a strategic industry leading global trends.”

Ko Dong-hwan

Covering the food & beverage industry, beauty, fashion, retail markets, the Ministry of Land, Infrastructure and Transport, the Ministry of Agriculture, Food and Rural Affairs and related people and entities worldwide

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