With Corona, Korean-style Beverage Exports Increase... Need to Target US, Japan, Vietnam, etc.

Korea International Trade Association International Trade and Commerce Research Institute, 'Trends in Korea's F&B Consumer Goods Exports' Report
Food and Beverage Exports, Led by Beverages, Poised to Break Record High for 2 Consecutive Years

[Asia Economy Reporter Kim Heung-soon] As the world prepares to return to normal life from COVID-19, an analysis has emerged suggesting that Korean companies should target related markets, especially in the United States, Japan, and Vietnam, as exports of Korean food and beverage products are expected to increase.

The Korea International Trade Association's International Trade and Commerce Research Institute stated this in its report titled "Trends in Korea's Food and Beverage (F&B) Consumer Goods Exports," released on the 28th. According to the report, Korea's food and beverage exports, which surpassed $7 billion in 2020, recorded $5.32449 billion by August this year, a 16.3% increase compared to the same period last year, indicating a strong possibility of setting a record high for the second consecutive year.

In 2020, when COVID-19 began, exports of ramen (29.2%) and sauces (24.5%) surged significantly due to the 'home cooking' trend. In contrast, this year, beverage items are leading Korea's food and beverage exports. Beverage exports, which had slowed down last year due to reduced outdoor activities, increased by 28.4% by August this year compared to the same period last year. Particularly, the growing interest in health and dieting has expanded the beverage market, with exports of non-alcoholic beer (487.9%) and vegetable juice (53.2%) sharply increasing.

Key markets for Korean companies include the United States, Japan, and Vietnam. In the U.S., food and beverage exports rapidly increased after COVID-19, with export growth rates of 23.3% and 12.8% in 2020 and 2021, respectively. Japan, the largest export market with exports exceeding $1 billion from January to August this year, showed strong exports in beverages (57.0%) and fishery products (22.9%). In Vietnam, demand for Korean powdered milk and baby snacks continues steadily alongside rising middle-class incomes, and recently, exports of alcoholic beverages have also increased.

The report stated, "As the importance of consumer goods exports rises amid disruptions in intermediate goods supply chains, exports of core consumer goods such as food and beverages have been increasing faster than Korea's total exports for three consecutive years since 2018," adding, "This increase in food and beverage exports appears to be driven by Korean companies' efforts to localize products and improve quality, along with growing interest in Korean culture."

Jo Eui-yoon, senior researcher at the Korea International Trade Association, said, "Next year, when we fully enter the 'With Corona' phase (gradual return to normal life), the increase in beverage exports seen this year is expected to extend to alcoholic beverages due to eased gathering restrictions and increased dining out," advising, "Considering the recent popularity among the MZ generation (Millennials + Generation Z) of low-calorie, low-alcohol beverages such as 'hard seltzer,' which is carbonated water with added alcohol and flavor, companies should target the market with products suited to these new trends."