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Current Status and Prospect on Fats and Oils Consumption

in Korea

Suk  Hoo  Yoon  Department  of  Food  Science  and  Biotechnology  

Woosuk  University

2015. 4. 27

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Energy Supply in Korea

1980 1990 2000 2007 2012

Tot. Energy (Kcal) 2,485 2,853 3,010 2,967 2,927

Carbohydr. 75.0 64.7 63.1 59.6 61.9

Protein 11.8 12.5 12.9 13.4 13.7

Lipid* 13.1 22.8 24.0 27.0 24.5

* In total lipids, animal origin is 22.1%. •  In visible lipids (51.4%), vegetable origin 97% (2012)

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0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

6 0 0

7 0 0

8 0 0

9 0 0

1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 5 2 0 0 7 2 0 1 2

Dom. Produc.ImportTotal(1,000M/T)

Production and Import of Fats and Oils

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Total Supply of Fats and Oils

1990 1995 2000 2007 2012

Tot. Consump. (1,000M/T) 612 633 749 891 734

Veget. oils (%)

507 82.8

566 89.4

725 96.8

866 97.2

71 97.0

Anim. Fats 106 67 24 25 22

Self Suff.(%) 8.0 4.8 3.2 1.7 2.0

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Supply of Fats and Oils in Korea

Total supply in 2012 : 734,000 M/T Total population : 50,004,000 Per capita 14.68Kg/year, 40.21g/day (5.8% decrease from 2011)

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Production of Fats and Oils in Korea (2012)

Fats and Oils Amount (M/T)

Rice bran oil -

Sesame oil 3,328

Perilla oil 6,796

Fish oil 4,516

Rapeseed oil 522

Total 15,162

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Import of Fats and Oils in Korea (2012)

Fats and oils Amount (M/T) Soybean oil 162,093

Palm oil 324,957 Coconut oil 59,528

Cottonseed oil 8,924 Other veg. oils 66,312

Tallow 5,124 Fish oil 14,077

Other ani. fats 806 Total 641,824

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Retail Sales Amount of Cooking/Salad Oils in Korea

Oils 2012 (%) 2013 (%)

Canola oil 24.8 34.3

Soybean oil 34.8 28.5

Grape seed oil 19.6 17.6

Olive oil 12.4 11.3

Corn oil 5.5 4.4

Rice bran oil 1.2 0.8

Others 1.7 3.1

Total KW274,992mil KW316,626mil

Sesame oil KW99,421mil KW104,944mil

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Sales Amount of Fats and Oils Rank Company Proportion

1 Lotte Foods 22.9 2 CJ Cheiljedang 19.4 3 Ottogi Ramen 13.4 4 Sajo Haepyo 11.3 5 Samyangsa 4.6 6 Ottogi 4.4 7 Nongshim 3.9 8 Jinyuwon 2.2 9 Dongsuh Oils/Fats 2.1

10 Daekyung ONT 1.8 - Others 5.0

Top 20 91.1 Total KW1,589,096mil 100.0

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Food Usages of Palm Oil in Korea

•  Instant noodle (Ramyeon, Ramen) •  Snacks •  Margarine •  Shortening •  Coffee creamer •  Chocolate coating

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In Market By Type

Classification of Instant Noodles in Korea

Fried Noodle

Dried Noodle

Pouch Noodle

Cup Noodle

Ordinary

Chajang

Rice

Mixed

Chajang

Mixed

Ordinary

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Classification of Noodles

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Year

Sal

es a

mou

nt (K

W, x

108 )

Sales amount of instant noodle in Korea (*2014, KW19,700 x 108, 2012 - KW19,800 x 108 )

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(KW,x108)

Year

Bowl noodle Proportion

2012 1991

Sales amount and proportion of bowl noodle

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Export of instant noodle from Korea

($,x104)

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Composition of manufacturing cost of instant noodle in Korea

Materials

Others

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Composition of materials cost of instant noodle in Korea

Wheat flour

Starch

Palm oil/palm olein

Other major materials

Box

Wrapping paper

Container

CAP

Other minor materials

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Future price of wheat flour

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Future price of palm oil

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Future price of packaging materials

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(KW/$)

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Example of sales composition

(KW,x108) (KW,x108) In No Snacks Others Profit(R)

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Trend in instant noodle consumption in Korea

•  Pouch noodle, ca 2/3 but in decreasing trend

•  Noodle without soup (Chanjang ramyeon, Bibimmyeon) in increasing trend especially in summer and autoumn

•  Improve physiacal structure of noodle

•  No big price increase since January 2010

•  Export mainly to China, Japan, USA, Hong Kong, Australia, Russia, Taiwan, Canada, UK, and Malaysia etc.

•  Major producers include NongShim, Samyang Foods, Ottogi Ramyeon, Paldo, Pulmuone, and Myeon Sarang.

•  Per capita consumption in 2013, 74.1 packs (1st in the world)

•  Same top 5 best sellers, same best seller during 2010 – 2013

•  Power of “Modisumer”, well-being ramyeon, growth of PB in Korea

•  World trend include low carbohydrate, super convenience, East-West exchange, novelty products, gluten-free, premiumization

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Confectionary Market in Korea

Market Size in 2012 : 3.1 trillionKW (1USD=1,100KW)

Major Products Sales (ca 69.5% of total) Snacks 32.7% Biscuits 30.2%, Korean Trad. 2.9% Others 3.7%

Per capita consumption of snacks

Amount(kg) Amount(KW

)

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Classification of Confectionary in Korea

Confectionaries

Snacks

Confectionary

Biscuit

Wafer

Cookie

Cracker

Korean Trad. Cookie

Sweet red bean jelly

Jelly

Caramel

Sweet

Candy

Ices Ices

Gum Gum

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•  Manufacturing process - rolling snack, extruding snack, potato chip

•  Method - frying, roasting, extruding, puffing

•  Raw Material – cereal (wheat, rice, corn), potato, sweet potato, bean, starch, nut

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Classification of Savory Snacks

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Confectionaries Sales in Korea

Year Amount (MT) Amount (mil KW)

2008 494,546 2,180,218

2009 415,485 2,341,027

2010 400,593 2,591,121

2011 400,519 2,866,389

2012 485,279 3,073,678

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Confectionaries Sales in Korea

Variety Amount (MT) Amount (mil KW)

Confectionary Snacks 138,639 1,004,058

Biscuits 114,153 929,688

Korean Cookies 14,515 88,853

Others 19,443 112,669

Others 198,529 938,408

Total 485,279 3,073,678

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Snacks Sales in Korea

Year Amount (MT) Amount (mil KW)

2008 118,714 667,925

2009 109,424 752,739

2010 120,545 827,798

2011 128,365 970,525

2012 138,639 1,004,058

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•  Top Confectionaries Manufacturers

- Lotte Confec., HaiTai Confec., Orion, Non

gShim, Orion Snack International, Crown Bakery, Binggrae, HaiTai Garubi, Lotte Sa

mKang, Chung Woo Foods, etc.

•  Top 20 Manufacturers – 79.4%

(ca 25% for export)

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Fats and Oils Used for Confectionaries

Fats and Oils

Domestic (MT)

Import (MT)

Total (MT)

Proportion (%)

Soybean oil 0 13,555 13,555 86.5

Palm oils 0 876 876 5.6

Rice bran oil 0 454 454 2.9

Corn oil 11 422 433 2.8

Rapeseed oil 1 339 340 2.2

Total 12 15,646 15,657 100.0

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Price Indices of Living Necessaries and Snacks

CPI for Living Snacks

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•  Growth of PB brands for convenience store •  Growth of premium snacks – especially for yo

ung parents •  Growth of well-being snacks – especially for

women’s diet •  Growth of snacks possessing unique and unf

amiliar taste, and unique eating method

Trends of Snack Market in Korea

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•  Easy and affordable buying and eating •  Safety of raw materials •  Growth of “natural” products due to increase of health an

d wellness concern •  Diversity for individual satisfaction in sensory and indulge

nce •  Individualism and expression especially in younger gene

ration •  Development of new market through localization in devel

oping countries •  Increase of communication through ICT •  Sustainable consumption and trade with ethics

Trends of Snack Market in the World