Sector Trend Analysis – Meat Trends in South Korea

South Korea's meat production

For market year 2021, South Korean meat production (pork, chicken and beef) totaled 2.6 million tonnes, with pork accounting for 1.4 million tonnes, chicken for 0.9 million tonnes and beef for 0.3 million tonnes. Pork, chicken and beef production saw steady growth from 2017 to 2021.

South Korea's trade summary

Of the top ten meat suppliers to South Korea by value, Canada was ranked as the 6th largest (valued at US$145.9 million in 2020) and accounted for 2.9% of the global market share to South Korea in 2020.The largest supplier was the United States, with exports valued at US$2.2 billion. Due to the strong demand for meat, 8 of the top 10 countries exporting meat to South Korea had a steady CAGR from 2016 to 2020, ranging from 29.7% (Thailand) to as low as 1.3% (Australia). In contrast, the CAGR of Germany and New Zealand were −6.5% and −1.4% during the same period.

Of the top 10 meat suppliers to South Korea by volume, Canada also ranked as the 6th largest in 2020, exporting 45.5 thousand tonnes and accounting for 3.9% of the total world exports (1.2 million tonnes). Canada declined at a CAGR of 2.2% from 2016 to 2020, while Thailand reached the highest CAGR of 30.7%, among the top 10 suppliers.

South Korea consumers have increased meat consumption from 2016 to 2020. Both the U.S and Canada have increased fresh beef and pork exports to South Korea at significant growth rate. In 2020, the top three U.S. meat products exported to South Korea were fresh/chilled boneless bovine meat at US$631.0 million, frozen boneless bovine meat at US$531.8 million and frozen meat of swine at US$461.8 million. Pig fat recorded the highest CAGR of 43.4% from 2016 to 2020.In 2020, Canada's top meat exports were fresh or chilled swine at US$45.5 million, followed by frozen meat of swine at US$33.1 million. Fresh or chilled bovine meat, boneless, had the highest CAGR of 135.3% from 2016 to 2020.

In terms of trade volume, Canada's top exports in 2020 were frozen swine at 14.9 thousand tonnes, and fresh/chilled swine meat at 8.7 thousand tonnes. Fresh/chilled bovine meat, boneless, had the highest CAGR of 137.4% from 2016 to 2020.

In terms of export value broken down by Canadian province, Alberta led with a value of US$66.8 million in 2020, which accounted for almost half of Canada's total meat exports to South Korea. Manitoba ranked second, exporting US$40.3 million in 2020, followed by Quebec at US$18.0 million.

In terms of export volume by province, Alberta exported 19.3 thousand tonnes of meat to South Korea in 2020, followed by Manitoba at 12.0 thousand tonnes and Quebec at 8.2 thousand tonnes.

It is important for Canadian exporters to work closely with their importing partners to ensure that South Korea's import requirements are met and that the necessary documentation is provided. Please also not that only federally registered meat establishments meeting certain criteria are eligible to export meat products to South Korea. Please consult the Canadian Food Inspection Agency list of federally registered meat establishments and their licensed operators or contact CFIA local office before making any shipments.

Canada does not currently have market access to South Korea for poultry and poultry products. For pork, Canada has system-wide market access to South Korea, and Canadian beef access is granted on an establishment-by-establishment basis. For more information on the list of establishments approved for beef exports to South Korea, please visit the Canadian Food Inspection Agency (CFIA) List of establishments approved to export to South Korea. Canadian meat exporters are encouraged to verify if their information is accurately reflect on the CFIA website before shipping their products to South Korea in order to avoid potential delay or rejection at the Korean ports because of information discrepancies.

Consumption and spending

Market size

The total volume of sales of meat in South Korea reached 2.2 million tonnes in 2020. Pork accounted for the largest volume of meat sold in South Korea in 2020 at 0.9 million tonnes(43.8% of the total meat sales), followed by poultry at 0.8 million tonnes and beef at 0.4 million tonnes. Except for pork, meat sales in all categories increased from 2016 to 2020. Beef and veal had the highest CAGR of 3.2%. It is forecast that by 2025, total meat sales in South Korea will reach 2.7 million tonnes. Poultry is projected to have a CAGR of 4.3%, followed by beef and veal at 3.9% from 2021 to 2025.

Per capita consumption of meat by South Korean consumers was 62.5 kilograms in 2020, up from 56.6 kilograms in 2016, and it is projected to reach 63.6 kilograms by 2025. Compared with Canadian consumers, South Korean consumers will continue to increase their meat consumption in the next five years.

Retail sales value

The value of the South Korean meat sector declined from US$6.1 billion in 2016 to US$5.3 billion in 2020, registering a CAGR of −3.4%. The sector is expected to rebound and reach US$6.7 billion by 2025, growing at a CAGR of 6.5% from 2021 to 2026. According to Euromonitor, chilled processed poultry records the highest current value growth of 41% in 2020 from 2019 as South Korean consumers turned to quick and easy meals due to having to continually prepare meals at home. And frozen processed meat was expected to continue to rise from 2021 to 2025, mainly driven by products that can be cooked by South Korean consumers in an air fryer.

Leading companies and brands in the South Korean processed meat sector

CJ Group, Hormel Foods Corp and Lotte Co., Ltd. are the leading companies in the South Korean processed meat sector. Private labels also held 20.9% of the market share, while other companies held 79.1% in 2020.

The top three brands in the South Korean processed meat sector in 2020 were Spam, Harim and Healthier Ham. Spam's value share was 13.5% of the South Korean processed meat market. Harim's value share was 7.0% and Healthier Ham's was 6.0% in 2020. Gourmet registered the highest market share growth at a CAGR of 36.4% from 2016 to 2020.

For more information

The Canadian Trade Commissioner Service:

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

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For additional information on Seoul Food and Hotel (SFH) 2021 please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and agri-food Canada
ben.berry@agr.gc.ca

Dongyeon Kim
Trade Commissioner (Agriculture & Food)
Embassy of Canada to South Korea
dongyeon.kim@international.gc.ca

More on Canada's agriculture and agri-food sectors:

Canada's agriculture sectors
Information on the agriculture industry by sector. Data on international markets. Initiatives to support awareness of the industry in Canada. How the department engages with the industry.

Resources

• Euromonitor 2021
• Euromonitor, 2020, Processed Meat and Seafood in South Korea
• Global Trade Tracker, 2021
• OECD Data, May 2021, Meat consumption
• United States Department of Agriculture (USDA), 2021. USDA production, supply and distribution

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Prepared by: Zhiduo Wang, Market Analyst

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