Market Overview : Canned Food Market in Korea

Canned Food Market in Korea

Market History

Ÿ  The canned food market in Korea evolved with the introduction of ‘Spam’, a canned ham product released from the U.S. military bases after the Korean War in 1950s. Because most canned food products were imported, it was regarded as expensive.

Ÿ  In 1982, tuna, considered as high-priced fish in Korea, became available as canned food. As a result, canned food products became a major processed food sector.

Ÿ  As housewives, key consumers of canned food, grew more interested in healthy food after 2000s, the concern that canned food weren’t quite healthy grew stronger. There is still a lingering dispute in the market that bisphenol A, detected in the cans makes canned food rather unsafe. (Bisphenol is coated on the can’s inside to prevent corrosion by the food)

Ÿ  However, the canned food has already become an essential processed food category for modern consumers seeking a simple lifestyle.

Market Size & Segment

The canned food market in Korea reached 1 trillion won in sales as of 2012.
Seafood is the largest segment, accounting for more than half (58%), followed by meat (33%) and agricultural products (5%).

(Source: Herald Economy)

Canned food Market Size (2012) [Unit: KRW billion]

• SEAFOOD: Tuna is the leading product (400 billion won), followed by sea snail (100 billion won), saury (50 billion won) and mackerel (10 billion won). Canned tuna is widely loved because it is not easily available in other packaging and it can be used in many different Korean recipes.  
• MEAT: In the canned meat products, Ham is the largest with 300 billion won in sales. Canned chicken was first launched by Harim back in 2007, the biggest poultry processor in Korea, which has presented a variety of flavors since.

Major Trends

As the canned food market has already reached maturity, gradually slowing down its growth, key players are trying to overcome it by developing and releasing the new products reflecting the diverse consumer needs and by nurturing the new consumer groups. The followings are key market dynamics within the last few years.

Canned Food Market Dynamics in the Past 3 Years

New consumer groups	Single and leisure-minded consumers are emerging as main consumer groups after housewives
Diversification of sales channels	Selling diverse products in discount stores, one of the conventional sales channels Selling imported or environment-friendly products in department stores Selling in large packs for the single consumers through TV home shopping, online malls or social commerce sites
Demand for the processed food Increases	The prices of fresh food have risen due to the concerns surrounding the radiation leak in Japan and climate change, which is pushing the demand for substitute food up The demand for canned snacks with various flavors The demand for simple-to-cook Korean food is rising because of overseas travels or Koreans living abroad
New imports/exports	Import of new types of canned food is increasing thanks to consumers seeking western ingredients (tomato puree, beans, sauces) Canned feeds for pets Korean canned food for the overseas market
New products	Emphasizing on ingredient freshness to counteract the health concerns (example: tuna cans with reduced fat) Launch of salmon cans to target consumers familiar with the fish farming Chicken breast cans to appeal to consumers on a diet Smaller cans suitable for singles
Marketing	Development and promotion of new recipes using canned food Co-promotion with outdoor fashion brands or travel agencies

For inquiries on this market overview or a full report, please contact  Dennis Am, marketing/sales manager (dennisa@groupibi.com)