K-Health Supplements Challenge the Global Stage Based on 'Individually Approved Ingredients'

Exclusive Manufacturing and Sales Rights for Six Years Upon Individual Ingredient Recognition
CJ Wellcare, Cosmax Bio, and RP Bio Lead the Way

Domestic health functional food (HFF) companies are accelerating their challenges in the global market based on the competitiveness of individually recognized raw materials.

According to the industry on the 11th, as the wellness trend spreads worldwide, the export of domestic HFF products overseas is rapidly growing. According to the Korea Customs Service's statistics, Korea's HFF export value increased from $581.01 million (about 847.7 billion KRW) in 2020 to $722.7 million (about 1.0544 trillion KRW) in 2021, $730.43 million (about 1.0657 trillion KRW) in 2022, and $847.28 million (about 1.2361 trillion KRW) in 2023.

Domestic companies are targeting overseas markets by leading with products based on individually recognized raw materials. Individually recognized raw materials refer to ingredients that have been officially recognized by the Ministry of Food and Drug Safety for specific functionalities, unlike general raw materials. They must prove their effectiveness through scientific research and clinical trials to be recognized. Once recognized as individually acknowledged raw materials, companies gain exclusive manufacturing and sales rights for the ingredient for six years.

Companies gaining attention for HFF exports in Korea include CJ Wellcare, Cosmax Bio, and RP Bio. CJ Wellcare developed Korea's first individually recognized probiotic strain isolated from kimchi in 2013. Through this, they are leading the probiotic market with various functional products including gut health, diet, vaginal and oral health.

Cosmax Bio developed individually recognized raw materials based on perilla extract and hydrangea leaf hot water extract. Perilla is known to help with antioxidant effects and eye fatigue improvement. Hydrangea leaf hot water extract is expected to have benefits for skin health and body fat reduction, making it highly valuable as an HFF raw material.

RP Bio is in the process of obtaining approval for sunflower seed extract, which has body fat reduction functionality, and black ginseng extract, Korea's first respiratory health functional ingredient. Turmeric extract and Jeju steamed tangerine peel extract, which have cognitive function improvement and body fat improvement functionalities respectively, are expected to be approved in the second half of this year.

Industry insiders unanimously state that they will continue to focus on innovative raw material development. A CJ Wellcare official said, "Although overseas expansion of HFF is challenging, we will accelerate global market development through innovative raw materials and product development." A Cosmax Bio official also explained, "As the globalization of the HFF market accelerates, differentiated raw material development and scientific verification are becoming essential factors."