Samjong KPMG: "Wellness Foods Emerging as the Next Growth Engine"

Report Proposes Wellness Food Trends and Business Strategies
Expansion Accelerates in Health Functional Foods, Protein, and Low-Spec Food Markets

As consumers increasingly prioritize a lifestyle centered on daily health management and disease prevention, demand for balanced nutrition and wellness foods is rapidly expanding. The domestic wellness food market is becoming more segmented-into categories such as health functional foods, protein foods, and low-spec foods-while a growing number of companies are entering the space, resulting in a shift in the competitive landscape.

On December 17, Samjong KPMG announced the publication of its report, "Wellness Food Trends and Business Opportunities Connecting Health and Lifestyle," which details these developments.

According to the report, last year, domestic exports of health functional foods increased by 45% compared to 2020. Demand for Korean health functional foods continues to grow in major markets such as China, Southeast Asia, the United States, and Europe. Manufacturers of health functional foods are focusing on developing individually recognized ingredients as a core strategy.

Although the entry barrier for individually recognized ingredients is high, companies can secure a six-year market monopoly in Korea, making these ingredients a key growth asset for the future. As a result, more companies are strengthening their research and development capabilities and working to secure proprietary ingredients.

Sales channels for health functional foods are also diversifying. While online platforms and pharmacies were once dominant, there has been rapid expansion into H&B stores, fixed-price shops, and convenience stores, significantly improving consumer accessibility. In particular, small-packaged and value-for-money products are gaining traction, and channel-specific differentiation strategies are becoming more pronounced.

The personalized health functional food market is also expected to grow rapidly, following the institutionalization enabled by amendments to the Health Functional Food Act. Subscription models that combine AI-based surveys and analysis with expert consultations to deliver customized supplements on a regular basis are becoming a representative business format. In addition, with the expansion of OEM and ODM-based production and evolving consumer needs, more indie brands planned directly by pharmacists and nutritionists are emerging.

The protein food market, once focused mainly on athletes, is now expanding to the general consumer population. Companies are segmenting products based on consumer lifestyle, age group, and health goals, offering tailored solutions to enhance competitiveness.

In particular, the rise of the "healthy pleasure" trend and growing demand for slow aging have fueled a surge in demand for "convenient consumption," driving rapid growth in the ready-to-drink (RTD) protein beverage market. As consumption patterns diversify, protein foods are spreading across major food categories, especially as meal replacements and snacks. Beyond beverages, protein-enriched products are being launched in categories such as noodles, ice cream, snacks, and home meal replacements (HMR), becoming a natural part of everyday diets.

So-called "low-spec foods," which reduce calories, sugar, sodium, and alcohol, continue to grow in line with health-conscious consumption patterns. At the same time, interest in additive-free foods is increasing, prompting the food industry to ramp up related product launches.

In particular, the alternative sweetener market is growing rapidly, driving the mainstreaming of sugar-free and low-calorie foods. In Korea, competition to secure market leadership is intensifying among companies focusing on allulose. Low-sugar foods have now become the "new normal" in the industry. What began with zero-calorie carbonated beverages is now expanding into desserts, convenience foods, sauces, and more.

Han Sangil, Deputy CEO and Leader of Distribution and Consumer Goods at Samjong KPMG, emphasized, "As wellness foods become mainstream, what were once specialized or functional foods for specific purposes are quickly being incorporated into everyday diets. Companies must secure competitiveness through the development of high-quality ingredients and processing technologies, while also diversifying product categories and actively seeking new revenue opportunities by pioneering overseas markets."