With prolonged COVID-19, consumers around the world are paying attention to ‘health’, perceiving food products as necessary for a healthy life. This has driven the growth of the health functional food market globally, according to the Korea Health Supplements Association (KHSA), the global health functional food market was confirmed to be at USD 156.2 billion in 2021. This trend is also transpiring in the agricultural product market. Now, when consumers choose agricultural products, they consider ‘health’ and ‘functionality’ as their top priority, which is also becoming a global trend.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

#Health Functional Food Market on a Growth Trend

In 2019, the global health functional food market was valued at USD 143.2 billion. Since exceeding USD 100 billion in 2013, it has been growing at more than 5% every year. According to the KHSA, the size of the health functional food market in Korea is estimated at USD 4.115 billion in 2021, up 20.9% over the past five years from USD 3.403 billion in 2017. In sales of health functional ingredients, red ginseng was the highest at USD 1,126 million, followed by probiotics USD 686.73 million, vitamins USD 516.84 million, oil containing EPA and DHA USD 200.4 million, body fat reduction products USD 132.94 million, and collagen USD 86.13 million. Probiotics are effective in proliferation of lactic acid bacteria and inhibition of harmful bacteria, while EPA and DHA are effective in improving blood neutral lipids and eye health. In the marketing survey of 240 member companies of the KHSA last year, ‘immune function’ was the most popular functional field, followed by intestinal health, skin health, sleep quality improvement, and body fat reduction. Red ginseng is definitely a functional item with excellent immune function. Its main products are Red Ginseng Extract from Korea Ginseng Corporation and Samsidae Red Ginseng Extract Every Ginseng from Geumsan Black Ginseng CO., LTD. In Korea, ginseng is a major health functional food along with red ginseng. According to Trusted Business Insights, a global market research firm, the global ginseng extract market size is estimated at USD 21.8 billion and is expected to grow at CAGR of 6.1% by 2027. This is the reason Korean ginseng, the origin of ginseng, is receiving more attention. As a functional raw material that enhances immunity, improves fatigue, and helps bone health, ginseng has recently been drawing attention as a health functional food in the U.S. In addition, garlic has been recognized as a good functional raw ingredient for improving blood cholesterol, and black raspberry extract is pending registration as a raw ingredient since its blood pressure control effect is recently confirmed.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

#From Sesame Leaves to Kimchi, Targeting the Japanese Functional Food Market

In line with this health functional food market, health and functionality are emerging as trends in the agricultural food market. With K-FOOD gaining recognition as a health food, traditional K-FOOD such as Kimchi and Gochujang, as well as fresh agricultural products such as sesame leaves and chili pepper, are drawing popularity as health foods due to recognition for their functionality.

It is especially notable that Korean agricultural products are registered as functional food products in Japan, where the functionality labeling food system has been in effect since 2015. Dangjo chili pepper was registered as a functional food in Japan in 2019 in recognition of its efficacy in suppressing blood sugar rise.

This is the first of its kind among imported agricultural products in Japan. Korean Dangjo chili peppers are exported to Japan by ‘Dream of Farmer CO., LTD.’. In 2020, Korean sesame leaves were listed as functional foods in Japan. Korea Agro-Fisheries and Food Trade Corpora-tion (aT) explains the functionality of sesame leaves could be labeled by securing scientific evidence through a Japanese research institute that the rosmarinic acid element in sesame leaves can relieve discomfort in the eyes.

Chubu sesame leaf is the famous Korean sesame leaf. In 2022, Korean Kimchi was newly registered as a functional food, the first time in Japan. This means the Japanese government has recognized the intestinal function of fructooligosaccharide in Kimchi. A prototype for functional research on Kimchi was produced jointly by the World Institute of Kimchi in Korea and Trechan, a Kimchi company. In addition, perilla oil and red vinegar were registered as functional foods in Japan in 2021.

A product of Komega, perilla oil is rich in omega 3 content including EPA and DHA, which can improve blood neutral lipids and help eye health. Registration for red ginseng is currently underway based on the results of research showing that it can greatly improve cognitive functions, and silkworms are about to be registered, recognized for 1-deoxynojirimycin which suppresses blood sugar rise.

 

 

 

Like Japan, Korea has implemented the ‘General Food Functional Labeling System’ since December 29, 2020. As of April 2022, there are 296 products with general food functional labeling that have been voluntarily reviewed by the Korea Food Industry Association.   The no. 1 general product with functional indication registered at the Korea Food Industry Association is Pulmuone’s ‘PGA plus calcium silken bean curd’. This product contains poly-gamma-glutamic acid (PGA), which helps promote calcium absorption in the body. After, Pulmuone introduced ‘Fermented red yeast rice natto’. Red yeast rice is known to be effective for reducing blood cholesterol. Pulmuone also sells ‘Vegetable lactobacillus rice’, a yogurt product containing probiotics. Daesang has launched Red vinegar containing aloe gel, which is good for skin health and immunity enhancement. Trechan Kimchi is Korea’s first Kimchi with functionality label. World Institute of Kimchi explained, “Trechan Kimchi contains fructooligosaccharide, a natural substance that proliferates beneficial bacteria in the intestine, and helps smooth bowel movements.” General products with functionality labeling using ginseng include ‘Milk made with ground ginseng and yam’ by Seoul Dairy Cooperative. This product is Korea’s first functionally labeled milk. Nokchawon launched Green tea powder with chlorella which is reported to be helpful in antioxidants, and Kwangdong Pharmaceutical CO., LTD. launched ‘Corn silk tea’ containing indigestible maltodextrin, which helps suppress postprandial blood sugar rise. 

 

*Tip. General Korean Food Products with Functionality Label