Korean Wellness Brews: Navigating Trends and Growth in Health Beverages

Published 2024년 7월 9일

The health and wellness beverage market in South Korea is rapidly growing as consumers increasingly seek healthier options like functional beverages with benefits such as improved digestion and immunity support. From 2018 to 2023, retail sales surged from USD 2.58 billion to USD 3.56 billion, reflecting a 37.9% rise. The market is forecasted to grow further by 7.1% annually until 2026, with naturally healthy beverages leading at USD 2.87 billion (75.27% market share). Leading brands are innovating with natural ingredients and expanding distribution channels to cater to the growing consumer preference for health-conscious beverages in South Korea.

Industry Overview

Health and wellness beverages are gaining popularity in South Korea, driven by a growing consumer preference for healthier lifestyles and functional drinks. There is increasing demand for natural, plant-based beverages without artificial additives, alongside a rising interest in low-calorie and sugar-free options due to awareness of sugar's health impacts. Busy lifestyles further boost demand for convenient, ready-to-drink health beverages.

From 2018 to 2023, retail sales for health and wellness beverages in South Korea surged from USD 2.58 billion to USD 3.56 billion, marking a robust 37.9% increase, as the Agriculture and Agri-Food Canada (AAFC) reported. This period underscored a consistent rise in consumer demand for healthier drink choices. Projections for 2024 anticipate continued growth, with an expected year-on-year (YoY) increase of 7.1%, pushing the market value to USD 3.81 billion. Looking towards 2026, the sector is forecasted to maintain an annual growth rate of 7.1%, reaching an estimated market value of USD 4.37 billion.

Figure 1. Retail Sales for Health and Wellness Beverages in South Korea

South Korea Health and Wellness Beverage Segmentation

The South Korean health and wellness beverage market in 2024 is segmented into four main categories. Naturally Healthy (NH) Beverages dominate the market with a value of USD 2.87 billion, accounting for 75.27% of the market share. Fortified/Functional (FF) Beverages follow, valued at USD 659.9 million and representing 17.33% of the market. Better For You (BFY) Beverages holds a market value of USD 266.3 million, capturing 6.99% of the market share. Organic Beverages, while the smallest segment, contribute USD 15.5 million, making up 0.41% of the market.

Figure 2. 2024 South Korea Health and Wellness Beverage Market Share Forecast

Naturally Healthy Beverages

NH Beverages in South Korea include drinks made with natural ingredients that provide inherent health benefits without artificial additives. These beverages are known for their purity and natural goodness, often derived from traditional and wholesome sources. Examples of NH beverages include herbal teas like ginseng tea, which is known for its energizing and immune-boosting properties, and barley tea, which is rich in antioxidants. Other examples are pure fruit juices and mineral waters.

Some examples of brands that carry NH beverages in South Korea include:

Woongjin: Offers a variety of herbal teas, including Ssanghwa tea and Jujube tea, which are traditional Korean teas made with natural ingredients that have natural health benefits.
Pulmuone: Known for its commitment to natural and healthy products, it offers natural fruit juices and teas that emphasize organic and pure ingredients.

Figure 3. NH Beverage Examples

Fortified/Functional Beverages

FF Beverages are enhanced with additional nutrients to support specific health functions. These beverages are designed to provide targeted health benefits, such as boosting immunity, improving digestion, or enhancing energy levels. FF beverages in South Korea include drinks fortified with vitamins and minerals, probiotic beverages, energy drinks, added vitamins drinks, and drinks with amino acids to combat fatigue.

Some examples of brands that carry NH beverages in South Korea include:

Yakult: Yakult is known for its probiotic drinks that support digestive health by replenishing beneficial gut bacteria.
Oronamin C: Oronamin C is a popular vitamin drink in South Korea, providing a quick boost of vitamin C and essential nutrients for energy and immune support.
Hongcho (Chung Jung One): Hongcho is a vinegar-based drink believed to aid digestion and metabolism, made through natural fermentation from grains and fruits.

Figure 4. FF Beverage Examples

Better For You Beverages

BFY Beverages are formulated to offer healthier alternatives to traditional drinks by reducing or eliminating undesirable ingredients such as sugar, calories, and artificial sweeteners. These beverages cater to consumers looking to make healthier choices without sacrificing taste.

Some examples of brands that carry BFY beverages in South Korea include:

Coca-Cola Korea: Offers diet sodas like Coca-Cola Zero, which provides a low-calorie alternative to traditional sodas.
PepsiCo Korea: Provides Pepsi Light, a reduced-calorie version of Pepsi that caters to consumers looking for a lighter soda option.

Figure 5. BFY Beverage Examples

Organic Beverages

Organic beverages are crafted using ingredients cultivated organically, free from synthetic pesticides, fertilizers, and genetically modified organisms (GMOs). They cater to consumers who prioritize eco-friendly and chemical-free products.

Some examples of brands that carry organic beverages in South Korea include:

Nokchawon: Known for its organic green teas sourced from pristine tea gardens, offering a range of pure and natural tea options.
Vegemil: Offers organic soy milk products made from organic soybeans, providing a nutritious and eco-friendly alternative to dairy milk.

Figure 6. Organic Beverage Examples

Key Takeaways

The health and wellness beverage sector in South Korea is expanding rapidly, driven by a rising awareness among consumers who increasingly seek healthier beverage options. Producers and traders can effectively leverage these trends by focusing on innovation through new formulations that highlight natural ingredients, functional benefits, and reduced sugar content, catering to the growing demand for products that promote overall health and well-being.

It is crucial to understand and cater to diverse consumer demographics within each segment, necessitating tailored marketing approaches and transparent communication about ingredient origins and health benefits to foster trust and loyalty. Moreover, obtaining organic certification and adopting sustainable practices present significant opportunities as consumers prioritize products that are organic and environmentally friendly. To enhance market reach and accessibility, expanding distribution networks across retail channels and online platforms is essential, complemented by robust logistics and digital marketing strategies aimed at educating consumers about the health advantages of these beverages and stimulating demand.