Showing posts with label Food exhibition. Show all posts
Showing posts with label Food exhibition. Show all posts

Tuesday, April 7, 2020

Food Industry In Korea




Traditional culture and Changes

Food in Korea is commonly called “bap” which means cooked rice. A typical meal consists of a bowl of rice and soup along with several side dishes. This type of meal is usually prepared for the whole family which involves buying groceries, cleaning and cutting the ingredients and spending an hour or more in the kitchen.

Social changes are leading to changes in food culture.  With the growth of single-person households and double-income households, and people working long hours (Koreans working hours was OECD top 3rd in 2017), the time has become precious just as families have become more affluent.  This has led to a decline in the tradition of preparing meals at home. Consumers now prefer prepared food or ready to eat meals.






 Unit: household EA

Also, dietary habits have been changing dramatically with rising income and the introduction of western food over the last 40 years. Rice consumption has decreased from 140Kg per person per year in 1970 to 60Kg in 2017.  One of the outcomes of favoring fast food resulted in an increase in bakeries and bread consumption. In 2016, the average amount of bread consumed per person per year was 90 slices increased from 72 in 2012.

Another massive change in the food culture by westernization is the introduction of coffee. Coffee and cafés not only changed the food culture, but it also brought changes to the lifestyle of Koreans. In Korea the café developed not just as a place for coffee but to meet, study, chat, work or even just get away from the heat of the hot summer. As the number of cafés increased, it created fertile ground for the dessert industry to expand quickly.



Source: edaily
Unit: EA café
Changes of where groceries are purchased:



Source: Opensurvey

Trends

Upcoming trends always have reasons for growth. As the size of households decrease and single households increase, simple and easy to prepare products to find their way into the grocery bags. Wash-and-eat fruits such as strawberries, peaches, cherries purchase increased while pear, watermelon and grapes decreased. Milk, which has a short shelf life decreased while long-lasting and fermented milk products are gaining more market share. Also, as one of the highest consumers of seafood per person, salmon is simple to prepare compared to other seafood products and consumption is growing.

Healthy food has always been an ongoing trend unrelated to the size of households and as a result, we can observe the salad industry growing. Home-made salad does not show much growth compared to foodservice and the ready to eat salad products which show growth potential. Especially, Grab-and-go salads and Shop-in-shop salads show the greatest business possibilities.

The fear of food contamination has become a growing issue in Korea. An incident involving pesticide in eggs and contaminated frozen hamburgers have caused peoples to have food-phobia. Experts believe that the pesticide egg issues were directly related to animal welfare where the facilities are inadequate for the number of animals they hold.

As with the growing concern about the importance of healthy and safe food, awareness of the environment and animal welfare issues are growing. Following global trends, vegetarianism is growing and distributors are responding with environmentally friendly products and humanely treated animal products.

At the same time, while seeking environmentally friendly, healthy and ethical food products, consumers are seeking cost-efficient products. With the severe competition derived from the unlimited information delivered through the internet & smartphones, cost efficiency is a requirement. Moreover, consumers are demanding cost-efficient price which also provides psychological satisfaction.

As evidence of one type of satisfaction, it is common to see diners clicking photos of meals. ‘Fun-sumers,’ which is a compound of ‘fun’ and ‘consumer,’ are people who share their experience of enjoyment online via SNS. This provides a different type of instant advertising for products. However, as easily as it can spread the faster it can burn out.

Import Process


The image displayed below is the general import process:


The time required for inspection depends on the type of inspection the product must undergo. All products require document inspection which requires about two business days. Field inspection will take about three business days. Random sample inspection where the Ministry of Food and Drug Safety (MFDS) will randomly select a product for an inspection takes about five to ten business days. The most challenging inspection is the complete inspection that requires at least ten business days and, depending on the product, can take more. A complete inspection is carried out on the first import, products containing hazardous substances, problematic documents and randomly. The importer or partner will have to take care of this process but knowing the process and supporting the partner will help accelerate the speed.

The requirements for the complete inspection differs by product, but the below are the required documents for all products.

1.   Business license (importer)
2.   Business permit (importer)
3.   Shipping documents
4.   Korean labeling
5.   Manufacturer information
6.   Manufacturing process
7.   Component table
8.   Ingredient table


The first import of a product will undergo a complete inspection.  After a product undergoes a complete inspection, subsequent shipments of identical products only require a document inspection. An import of 100kg does not require a complete inspection therefore is not recorded by the Korean Customs Service. The first shipment exceeding 100 kg will be required to undergo a complete inspection. "Identical" is described as follows: 

- Food product or added food product with identical country of origin, manufacturer, product name, manufacturing process and ingredients
- Packaging with an identical country of origin, manufacturer, component and background color.

Also, if there is the problem with customs, it is better to resolve the matter with a 100kg shipment than a larger one.

Food Exhibitions and Shows






If you would like to identify and capitalize on business opportunities in Korea, let IRC Guide your Way!  www.ircconsultingkorea.comJacob at lsh@ircconsultingkorea.com






Tuesday, March 3, 2020

2019 Coex Food Week



2019 Coex Food Week
November 20th ~ 23th, 2019
Coex, Seoul

Organized by Coex Co.,Ltd the Coex Food Week is supported by the Ministry of Trade Industry and Energy and the Ministry of Food and Drug Safety. One of the largest food and beverage exhibitions, it has special events related to the industry such as the Seoul International Bakery Fair, Food Week Tech


Categories of Exhibits:

Food/Beverage
Machinery/Kitchen Utensils
Cooking Equipment/Kitchen Utensils
Package/Label, Store Facilities/Interior
Kitchen-Table Decor
Service/Online
HMR, Bakery,
Dessert,
Education/Sponsor,
Press and more.

2019 Exhibition Expectations

830+ exhibitors
53,000+ visitors

Exhibition Overview


The Coex Food Week exhibition shifted its focus compared to past years. The first floor (exhibition hall A, B) was focused on the domestic regions and its regional specialty. Compared to last year's exhibition the exhibition was more focused on domestic exhibitors compared to last year. There was a pavilion for Singapore and about five or more booths were from a different country, but it did not seem appealing and was at the far end of the exhibition hall. Compared to the Korean title of the exhibition translates as the ‘Seoul International Food Exhibition’ there were fewer international aspects than one would expect. The upper floor had various events and sectors such as a bakery competition, tea competition, dessert sector, beer sector, and other interesting food products.





Hall A had different regional specialties and a small number of international booths. Frankly speaking, my expectations for regional food products was not high considering that most of the packaging and branding is of low quality. However, this year was different. The exhibitors had invested extensively in branding, packaging and display.


    

Hall B was focused mainly on the Gyeonggi-do region and contained a display of the Korean table serve competition. Gyeonggi-do which is the metropolitan area surrounding Seoul has various known specialties.
  



Hall B also had a display area for the ‘Korea table setting competition,’ which showed various tables and settings from different regions. The most interesting was the setting based on North Korean style. There were also displays of various Korea traditional alcoholic beverages by region which have been attracting some attention overseas.




The last section of Hall B was the packaging section where packaging companies displayed their products. There were auto-packing systems, product packaging and boxes for final products. Similar to the trend of organic and ecofriendly foods, packaging material manufacturers also promoted packaging which was environment-friendly.   

  


Moving up to Hall D there were various sections from tea, dessert to beer. There was a section which was about nine booths all related to Korean desserts. Within Hall D there were a few other desserts, but the Korean traditional dessert sector was attracting visitors with neat plating and promotions.

  


At the food and beverage exhibition, it was hard to pass by the beer section where the displays were festooned with awards for beer. The beer section was designed as food stand and space was provided so that people could enjoy beer and some bar snacks during the exhibition.




The demand for tea has been growing in Korea recently and we were able to observe this demand at Coex Food Week. The 5th Korean Tea Blending competition, the 2nd Bosung Tea Masters Championship and the Global tea contest were held during this exhibition. Moreover, there were lines at booths that provided traditional tea tasting.




Hall C was related to the bakery industry. The ‘Top of Patissier in Asia’ was ongoing while all different types of bread, desserts and equipment were on display. 

  

Opportunities

The food & beverage industry is a market that will never disappear. Based on the Ministry of Food and Drug Safety, the production of food and beverages has decreased from KRW 50.3 trillion in 2014 to 49.7 trillion in 2017, but the total domestic sales of food and beverage products has increased. 50.6 trillion to 56.3 trillion within the same period.

However, there are numerous obstacles to overcome to enter the Korean market. Food inspections, tariffs and non-tariff barriers are somewhat manageable risks but there are unknown risks that are unpredictable such as the trade war between U.S. and China, the exchange rate, decreasing population, changes with the labor environment.    





If you would like to identify and capitalize on business opportunities in Korea, let IRC Guide your Way!  www.ircconsultingkorea.comJacob at lsh@ircconsultingkorea.com