With consumers’ growing interest in health after COVID-19, the market for health functional food is expanding. Its market size in Korea is worth about USD 3.533 million as of 2021, and it continues to grow due to the accelerated population aging, increase in income levels, and higher interest in health. Red ginseng, which helps boosting immunity, and probiotics, which are great for intestinal health, are especially gaining popularity.

#More consumers are taking care of their health through food
The growing interest in health around the world has led to the expansion of the market for processed foods with health functional ingredients. According to the Food Information Statistics System (FIS) of Korea Agro-Fisheries & Food Trade Corporation (aT), the global functional food market is worth about USD 187.1 billion as of 2020. It is showing an average annual growth rate of 5.3% and is expected to reach USD 229.7 billion in 2024. After COVID-19, consumer tendency by taking care of their health through food are intensifying.
According to research firm MINTEL, in China, the number of consumers who regularly include immune-boosting foods in their diets was 20% before COVID-19, but it has recently risen to 70%. 86% of U.S. consumers said a healthy diet is important for a strong immune system. Consumers in the U.S. and Europe are showing interest in efficacy they can gain in everyday life, such as boosting immunity, increasing energy, and enhancing digestion.

#Popularization of health functional food in Korea
According to the Korea Health Supplements Association, the health functional food market in Korea is worth USD 3.533 million as of 2021, a 20% increase from about USD 2.922 billion in 2017. Growing interest in health and investment costs due to acceleration of aging and the spread of COVID-19 have led to such expansion of the market. Consumption of health functional food is becoming popular in Korea, with 81% of households purchasing health functional food at least once a year.
The raw ingredients of health functional food sold the most are red ginseng, probiotics, and vitamins. Occupying more than 26% of the market, red ginseng is a processed product that concentrates the ingredients of ginseng while repeating the process of steaming and drying. Since it contains various saponins and biologically active substances, red ginseng helps restore vitality, enhance immunity, and has nourishing, tonic, and antioxidant functions. At the same time, consumers' preference for foods with a high content of lactobacillus, such as probiotics that help intestine health, are increasing. Food and beverages rich in vitamins and biologically active substances such as EPA and DHA are steadily growing in the food market as well.

#Popular health functional food in Korea
The major red ginseng brand in Korea is CheongKwanJang of Korea Ginseng Corp. ‘Korea Red Ginseng Extract Every Time,’ one of its brands, is a sachet-type product that can be easily consumed at once. ‘Hansamin Red Ginseng Extract Prime’ of NH Hansamin Co., Ltd. is 100% red ginseng concentrate and is a popular product made by deeply enriching 6-year-old red ginseng at low temperature.
Kombucha, a beverage fermented by adding beneficial bacteria such as probiotics to black or green tea, is drawing attention as a great health drink for improving the intestinal environment and skincare. Along with Teazen Co., Ltd.’s ‘Kombucha Lemon’, it also produces stick packaging ‘Kombucha’ in various flavors such as berry, yuja (citron), and green tea. In 2021, 80 million sticks were sold in Korea alone, and they are exported to 27 countries including the United States, Japan, Hong Kong, and Singapore. Maeil Dairies Co., Ltd. has also introduced two types of ‘The Great Tea Kombucha’ (Original and Berry Lychee) that help with intestine health, which have drawn high consumer satisfaction.
Other distributed products include vitamin drinks using fresh agricultural products such as apple, pear, doraji (ballon flower root), and cabbage juice, and various foods and drinks with health functional ingredients such as red pepper powder and paste made from Dangjo chili pepper that help control blood sugar.