One Year of the General Food Functionality Labeling System... Over 200 Food and Beverage Items Registered

Pulmuone, Record Number of Items... Dr. You, Highest Sales Ever

[Asia Economy Reporters Hyewon Moon, Hyesun Lim] One year after the implementation of the general food functionality labeling system, food and beverage companies are actively launching related products. The general food functionality labeling system, which came into effect on December 29, 2020, allows general foods that previously could not display functionality to do so if there is scientific evidence. The system was established to revitalize the domestic food industry and guarantee consumer choice.

According to the Korea Food Industry Association on the 25th, 196 items have been registered as functional labeled foods under the general food functionality labeling system as of that date. Beverages account for the largest number with 80 items, followed by snacks, bread, and dairy products.

By company, Pulmuone leads with 27 items, followed by Lotte Chilsung Beverage with 14 items, Lotte Food with 10 items, Lotte Confectionery with 9 items, Orion with 10 items, Daesang with 4 items, and Nongshim with 3 items. By functional ingredient, the order was indigestible maltodextrin (helps suppress postprandial blood sugar rise), aloe gel (helps improve immunity, skin health, and gut health), fructooligosaccharides (helps bowel movements), and red ginseng. The raw materials or ingredients allowed to display functionality include probiotics (help proliferation of beneficial bacteria and suppression of harmful bacteria, aiding gut health), poly-gamma-glutamic acid (helps promote calcium absorption in the body), red yeast rice (helps improve blood cholesterol), aloe gel, and 29 other types.

The company most actively utilizing this system is Pulmuone. Early last year, Pulmuone launched the country’s first general food with functional labeling, ‘PGA Plus Calcium Soft Tofu,’ which added functional ingredients to tofu. ‘PGA Plus Calcium Soft Tofu’ was developed by Pulmuone Technology Institute and contains ‘poly-gamma-glutamic acid,’ a health functional food ingredient.

Lotte Chilsung Beverage included functional ingredients in tea drinks and cider. The ‘Thehada’ tea beverage contains fructooligosaccharides and indigestible maltodextrin, which is known to help suppress postprandial blood sugar rise.

Orion restructured its existing snack brand ‘Dr. You’ into a functional food brand. Orion strengthened the brand identity with the slogan ‘Delicious Health’ and built a diverse lineup. As a result, Dr. You’s sales last year grew 48% year-on-year to 68 billion KRW, marking the highest annual sales ever.

Japan, which introduced this system six years earlier in 2015, is estimated to have a functional general food market size of 300 billion yen (approximately 3.18 trillion KRW) last year. In Japan, functionality labeling is also allowed on food ingredients. However, there are voices calling for institutional improvements for this general food functionality labeling system to become more active domestically. A food industry official said, “Functional labeled products require prior review for advertising, which may infringe on companies’ freedom of expression,” adding, “There should be a basis to allow review of relaxed labeling standards compared to general foods.”

Reporter Hyesun Lim lhsro@asiae.co.kr