"Everyone Adds It to Home-Cooked Meals These Days"... Seasoning Selling Better as Prices Rise

Domestic Seasoning Retail Market in First Half Up 6% YoY
Growth Accelerates as High Prices Boost Demand for Home-Cooked Meals

As prolonged high inflation increases demand for home-cooked meals, the seasoning market, which had slowed down after the COVID-19 endemic (periodic outbreak of infectious diseases), is growing again. In particular, as health management has become a constant in the food market, premium seasonings without synthetic additives are expected to be at the center of market growth.

Lotte Mart's Natural Seasoning Product Zone

According to Nielsen Korea, a market research firm, the offline retail seasoning sales in South Korea in the first half of this year amounted to 103.7 billion KRW, a 5.7% increase compared to the same period last year (98.2 billion KRW). The domestic seasoning market grew in 2020 due to increased demand for home-cooked meals amid the COVID-19 pandemic, but slightly contracted in 2021 as meal kits grew amid the prolonged pandemic. However, as ingredient and dining-out prices surged afterward, demand for home-cooked meals increased again, expanding the market size.

The home-cooked meal culture expanded due to COVID-19 has led to growth in the Home Meal Replacement (HMR) market, with the recent trend showing a decline in dining out and a rise in various forms of 'home cooking' including HMR. Moreover, consumers have moved away from passively cooking HMR products as-is to mixing ingredients and products according to personal tastes and preferences to create new flavors. Accordingly, seasonings that provide various flavors tailored to preferences have become an essential element of home cooking, and a variety of seasoning products with different forms and tastes are being introduced to the market.

Additionally, seasoning companies launching next-generation seasonings to dispel misunderstandings about the harmfulness of MSG have provided consumers with alternatives, which is also believed to have influenced market growth. Negative perceptions of chemical seasonings have been alleviated, and the safety of seasonings has been confirmed through various channels, strengthening the tendency to recognize seasonings as value products that save cooking time and allow easy and convenient flavoring.

While first-generation (fermented seasonings) and second-generation (general comprehensive seasonings) focused on the umami taste of MSG, the third generation emphasized natural seasonings that preserve original ingredients while being comprehensive seasonings. Beyond the fourth generation of liquid fermented seasonings, recently, premium seasonings focusing on vegan or synthetic additive-free concepts have emerged as the fifth generation.

As health management has firmly established itself as a trend across the food market, seasoning products that deliver specific flavors centered on original ingredients, as well as those with sauce-like liquid formulations, are expected to expand in the seasoning market. With health trends reflected throughout the food market, diversification is occurring in seasoning formulations, ingredients, and manufacturing methods, and natural-friendly seasonings combined with a premium image are emerging and growing.

Meanwhile, as K-Food gains global popularity, the seasoning market is also expanding internationally. Along with the popularity of the Korean Wave, the rising popularity of Korean dishes such as Tteokbokki and Bulgogi is increasing demand for sauces and seasonings that make Korean food easy to prepare and access. In particular, domestic seasoning manufacturers are responding to the market by launching various customized products that consider local tastes.