Korean Exports of Edible Seaweed Reached New Record in Jan-May 2023, But Higher Prices Could Pressure Demand Down

South Korean exports of edible seaweed –chilled, frozen or dried – (HS Code 121221) reached their highest value on record this 2023 for a Jan-May period. Total value was USD 161.2 million, up by 32% year-over-year (YoY) and 40% compared to the previous five-year period. 

Source: Tridge and Korea Customs

Export volumes during the Jan-23 to May-23 period rose 10% YoY to 14.6 thousand mt, while the average export prices rose 20% to USD 11.04/kg. However, export volumes compared to the previous five-year period were down 10% YoY. Export prices, on the other hand, were 52% higher than the previous five-year period. This indicates that, so far into 2023, demand is considerably stronger than the previous year, as volumes have grown despite a higher export price. This demand is driven primarily by Japan as it widely uses seaweed in its cuisine and as it recorded low domestic output numbers in 2022. Nonetheless, compared to the five-year period, demand -- as measured in volume -- has evidently dwindled in light of much higher prices.

This negative effect of higher prices in export volume is particularly visible in May-23’s numbers. Export volume just in May dropped by 34% YoY after three consecutive months of YoY increases. This drop in volume corresponds to a sharp 80% YoY increase in the average export price, at USD 14.73/kg. 

Source: Tridge and Korea Customs

What is behind the higher prices? Prices have been mostly higher so far into 2023 compared to last year mainly due to generalized higher input costs. However, May’s price point was considerably higher. One explanation is a lower availability or lower quality of seaweed due to higher temperatures this year than last. Warmer weather can reduce the taste and availability of seaweed. In fact, Japan’s domestic output of nori during the 2022 season was reported to be the lowest in decades.

According to an investigation by the Korean newspaper Maeil Business Daily, the temperature on the Korean Peninsula during the summer has risen by an average 2.7 degrees over the last three decades. The article mentioned that as a result of the changing climate, eel and abalone production is declining, among other consequences. Particularly, abalone production declined because of lower levels of seaweed, which is their main food source.

Prices are expected to continue rising in the upcoming months, remain high during the summer, and begin to cool down in autumn, along with the weather. Higher prices will continue to temper global demand, but exports could still see a new record in value this year.

In 2022, South Korea was the second largest exporter of edible seaweed – chilled, frozen, or dried – in terms of value, with a total of USD 273 million. However, Korea also exports prepared and roasted seaweed, to bring the total seaweed exports of the country to over USD 650 million, which represents roughly 70% of the world’s market share.