"From Skin Health to Immune Boosting"... Growing by Increasing Utilization of the 'Sikcho Market'

Domestic Vinegar Production Up 13% Over 4 Years... Production Value Increases 25%
Usage Expands from Seasoning to Drinking... Fruit Fermented Vinegar Market Share Rises
Functional and Regional Specialty Vinegars Like Daesang's 'Hongcho' Gain Attention

[Asia Economy Reporter Eunmo Koo] The vinegar market is experiencing a strong wave of change. Since the COVID-19 pandemic, the so-called ‘self-medication’ trend, where individuals take charge of their own health, has spread, leading vinegar?traditionally used as a seasoning and flavor enhancer?to diversify its functions and uses into health and beauty beverages.

According to the Ministry of Food and Drug Safety on the 5th, the total domestic vinegar production, including vinegar and beverage base vinegar, reached 231,179 tons last year, marking a 12.1% increase compared to the previous year. Vinegar production, which was around 204,614 tons in 2017, briefly slowed in 2020 but has steadily grown, achieving a 13.0% increase over four years. During the same period, production value also rose by 25.0%, from 266.3 billion KRW to 333.0 billion KRW.

Among last year’s vinegar production, fermented vinegar accounted for 95.8% of the total. The production of fermented vinegar increased by 13.5%, from 109,591 tons in 2017 to 124,370 tons last year. This growth is attributed to heightened interest and consumption of products that help improve immunity following the COVID-19 pandemic. Additionally, the diversification of fermented vinegar’s uses into cleaning and washing purposes has also contributed to market growth.

Within fermented vinegar, fruit fermented vinegars?such as pineapple, lemon, and pomegranate?have diversified in flavor and accounted for the largest share at 45.3% based on production value, followed by distilled fermented vinegar (40.7%) and grain fermented vinegar (14.0%). In the past, vinegar was mostly used in small amounts for cooking, so distilled fermented vinegar products dominated. However, recently, as vinegar consumption has expanded beyond seasoning to include drinking, the share of fruit fermented vinegar has increased.

Exports have also steadily increased. Vinegar exports were valued at 10.26 million USD (approximately 13.3 billion KRW) in 2017 but grew nearly sixfold to 61.33 million USD (approximately 79.7 billion KRW) last year. The top export destinations last year were Japan (89.3%), the United States (2.4%), and China (1.6%). The product that most influenced the increase in export value was drinking vinegar. Centered on Japan, the largest export market with high interest in drinking vinegar, efforts to develop localized products using fruit fermented vinegar and strengthen marketing have boosted export volumes.

As the uses and types of vinegar diversify, the market is paying increasing attention to functional vinegars and vinegars made from regional specialties. Cheongjeongwon, the leading brand in the domestic drinking vinegar market by Daesang, relaunched its entire range of functional labeled food ‘Hongcho’ products in July. Hongcho products contain 100% fruit-aged fermented vinegar made with a patented three-step fermentation process and aloe gel, known to help skin health, gut health, and immune enhancement. Recently, they also introduced ‘Apple Vinegar Mother Vinegar,’ which is high in amino acids. Products utilizing regional specialties to contribute to local economic revitalization are also expanding, with examples including ‘Ottogi Dasima Vinegar,’ made from kelp harvested in Wando, Jeollanam-do.

Interest in balsamic vinegar is also growing. Balsamic vinegar, mainly used as a salad dressing, is mostly dominated by imported products in the domestic market. However, Korean-style balsamic vinegars using ingredients like bokbunja (Korean black raspberry) and mulberry, such as J&Food’s ‘Bokbok,’ are receiving positive responses and gradually expanding their market presence. Industry experts evaluate balsamic vinegar, along with wine vinegar and lemon vinegar, as items with currently low consumer awareness but high growth potential in the future.