Why Brands Should Consider Entering the South Korean Market in 2025
By: Eric Oh, South Korea Market Specialist at Incite.
With its dynamic consumer base with high disposable income, South Korea is rapidly emerging as a key market for food and beverage brands aiming to expand their export sales across the Asia Pacific region this year. The country’s global influence, fueled by the international success of K-pop and its tech-savvy population, positions South Korea as a central hub for market trends and cultural influence. Brands that establish themselves successfully in South Korea can tap into a broader regional market, making it an exciting opportunity for those looking to make a mark in the ever-evolving Asia Pacific region.
Opportunities in South Korea
To achieve success in South Korea, brands must first gain a deep understanding of local consumer tastes and preferences. South Korean consumers place a premium on innovation, product quality and aesthetics, including eye-catching packaging. In recent years, there has been a growing trend toward health-consciousness and sustainability, presenting fresh opportunities for brands that align with these values. The demand for plant-based foods, functional beverages, and healthy snacks is on the rise as South Koreans become increasingly aware of the health impacts of their food consumption choices.
For new entrants, it is essential to prioritise product offerings that not only meet local demands for health and sustainability but also showcase high-quality and environmentally friendly packaging. The market’s appetite for trendy, health-conscious products is a key opportunity for brands looking to capture the attention of South Korea's discerning consumers.
Challenges with Entering the South Korean Market
Despite the attractive opportunities on offer, brands will come up against some challenges when entering the South Korean market. One of the most significant obstacles is navigating the complex retail distribution network. The retail landscape is highly competitive, and the costs associated with running promotions and brand awareness campaigns can be substantial. To succeed, new entrants will need to implement a tailored approach with substantial investment and a well-crafted local strategy.
Further, South Korea has strict regulatory requirements concerning product ingredients, claims, and labeling, which may pose a challenge for international brands in some product categories. Complying with these standards is critical to avoiding costly delays or market entry setbacks.
Lastly, with a plethora of domestic and international brands already vying for consumer attention, distinguishing a new brand in a crowded marketplace is vital. South Korean consumers (like everywhere nowadays) can have short attention spans and a strong preference for trends, meaning that any brand entering the market must quickly capture their interest through innovative products and strong differentiation.
Trending Categories for Western Food and Beverage Products in South Korea
Food and beverage categories currently trending in South Korea include:
Plant-based foods: Driven by growing interest in sustainability and healthier lifestyles, plant-based products are seeing increasing demand.
Premium dairy products: Consumers are seeking out dairy products that offer high nutritional value or unique flavors, making this a growing segment.
Functional beverages: Beverages that offer added health benefits, such as the inclusion of probiotics or vitamins, are becoming increasingly popular among South Korean consumers.
Health-oriented snacks: Organic clean-label snacks are in high demand as South Koreans grow more mindful of what they consume.
Sustainable options: Products featuring ethically sourced ingredients and eco-friendly packaging are gaining importance as more consumers prioritise sustainability in their purchasing decisions.
Consumer Perceptions of New Zealand, Australian and UK Food Brands
South Korean consumers have clear perceptions of food and beverage products from different countries with certain nations standing out for their association with quality and sustainability:
New Zealand. New Zealand food brands are highly trusted for their natural, clean, and premium qualities. The country's strong reputation for supplying high-quality dairy, honey, and meat products makes it a desirable source for consumers seeking authentic, sustainable, and premium food products.
Australia. Australian food brands are seen as fresh, natural, and of high quality. The country's reputation for beef, wine, and organic snacks adds to the appeal of Australian food products, which are valued for their freshness and premium quality.
United Kingdom. British brands are often viewed as sophisticated and rich in heritage, particularly in categories like specialty teas and spirits. Products including whisky, gin, and iconic teas hold strong appeal due to their association with tradition, luxury, and craftsmanship.
Interested in opening the South Korean market in 2025? Email us at getincite@exportincite.com to set up a call to discuss your goals for entering the South Korean market and how we can support.