In South Korea, organic foods are associated with health benefits, and even high prices haven’t deterred local consumer demand for such products, especially after the COVID-19 pandemic hit and skyrocketed. the demand for foods with benefits for health and well-being.
“Regular food prices in South Korea are already considered very expensive compared to standard food prices in places like the European Union, and organic food is even more expensive than this.”The CEO of the local business consultancy KOISRA, Eyal Victor Mamou, said FoodNavigator-Asia.
“Despite these high prices, there is a growing demand for organic foods because they are considered healthy foods and Koreans are willing to pay more for products and foods that are considered healthier. COVID-19 also boosted the sale of healthy food in Korea.”
Some of the most popular organic food types in the country include processed fruit and vegetable products, as well as fresh fruits and vegetables, juice and dairy products, baby food, and snack foods.
“The organic food market in South Korea is growing steadily every year between 5% and 9%, and considering the high demand, I think it will continue to grow this year as well, especially as local demand and health awareness continue to grow as well. growing. every year,”Mamo said.
“We can see growing demand across all specialty food sectors, including gluten-free, a product category that was unheard of here just a few years ago, and the growth of organic and healthy food is also fueled by the fact that “Korea’s local shipping and logistics ecosystem is very advanced, so buying organic food and fresh produce online is easy and can be delivered the same day.”
Strengthening of the local organic market
Many South Korean organic brands are local, homegrown brands that focus on fresh produce like vegetables and grains.
South Korea recently introduced stricter regulations to govern organic certification, increasing the integrity of the system but also making it somewhat more difficult for companies that do not handle fully organic products to certify.
One of these measures was the introduction of an additional product certification system: the current system deals with processed organic foods containing more than 95% organic ingredients, but the new system will now control processed foods with more than 70% organic ingredients, as well as those that ‘have no pesticides introduced’ in its ingredients.
In addition, non-certified foods are no longer allowed to use organic terms such as “organic” or any pesticide-free term, and enhanced penalties have been introduced whereby repeat offenders who have their certification canceled three or more times in 10 years or your certification has been revoked, you will be barred from reapplying for five years.
That said, Mamou believes that the high demand for organic food from South Korea will continue to support the market even if conditions tighten.
“The demand for organic foods is so high that organic aisles or even entire departments are available in most local hypermarkets and department stores,”Mamo said.
“In department stores there is generally a greater variety of imported products, while in regular hypermarkets there is a better mix with local brands. There are many local brands, since the sales margin of these products is higher than regular products, [but interestingly] Today, more than 70% of the ingredients used in locally produced processed organic products are imported.
“The government has now implemented stricter regulations on the certification process, labeling and inspections of organic sellers, and I would not be surprised if these new regulations soon become new non-tariff barriers to block imported products.”
EU and US organic certifications are currently recognized in Korea.
Organic and pesticide-free agriculture
In South Korea, organic farming is differentiated into organic farming (no chemical fertilizers) and pesticide-free farming (using chemical fertilizers for less than 1/3 of the recommended use of fertilizers), and the government has been actively trying to help farmers. . Become the first not only to increase revenue but also to meet demand.
“As of 2020, the certified organic area in South Korea has expanded to 39,000 hectares, an increase of 29.7% compared to 30,000 hectares in 2019 and 18,000 hectares in 2014.”The South Korean Ministry of Agriculture, Food and Rural Affairs (MAFRA) said in a statement.
“It is estimated that there has been a reduction of about 18,062 tons of chemical fertilizers and about 834 tons of pesticides compared to conventional cultivation.”
A large part of this rise in organic farming stemmed from conversion from pesticide-free farming, but according to Mamou, overall agricultural production in Korea is falling.
“Many farmers are trying to switch to organic or pesticide-free farming, due to better sales margin and growing demand, but it’s not easy.”He said.
“Compared to 2019, there was an increase in farms certified organic, but also a decrease in farms certified free of pesticides and because of the regulations that allow the former to convert their certification to organic.
“Overall, the total agricultural production in Korea is declining every year, despite massive government aid and subsidies.”
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