Sector Trend Analysis – Fish and seafood trends in South Korea

Trade overview

The overall seafood market has grown at a CAGR of 3.5% from 2018 to 2022, reaching a total market size of 187.0 in 2022. From 2018 to 2022, Korea's seafood market has been the seventh biggest market in the world and has witnessed a stable growth during this period. The CAGR of Korea's seafood market was 2.8%, expanding the market's size from 6.1 in 2018 to 6.8 in 2022.

The following table displays the top 10 global suppliers of fish and seafood to Korea in US$ million over the past five years. The figures reveal that the global supply of fish and seafood to Korea increased at a CAGR of 3.0%, reaching US$6,809.3 million in 2022. Russia emerged as the largest supplier, with a market share of 21.6% and US$1,471.6 million in 2022, followed by China with a market share of 18.7%. Norway, with a CAGR of 10.5%, experienced the fastest growth rate, reaching US$613.2 million in 2022. Meanwhile, Canada placed tenth on the list with a market share of 2.0% and a CAGR of 2.7%.

In 2018, the total import of fish and seafood to South Korea was 1,557.9 million kilograms, which further rose to 1,713.2 million kilograms in 2022, exhibiting a CAGR of 2.4% during that period.

Among the top 10 imported seafood products, frozen Alaska pollack (HS Code 030367) stands out as the fastest-growing item, with a remarkable 14.8% CAGR over the period. The value of Alaska pollack imports rose from $203.3 million in 2018 to $352.7 million in 2022. Frozen shrimps and prawns (HS Code 030617) continue to be the largest imported product, increasing at a 6.4% CAGR and reaching a value of $591.8 million in 2022. Other notable imports include fresh or chilled Atlantic salmon and Danube salmon, with a 9.5% CAGR, and frozen fillets of tuna (HS Code 030487), with an 11.9% CAGR. However, some imported seafood products experienced a decline, such as frozen octopus (HS Code 030752), with a −1.6% CAGR, and frozen fish (HS Code 030389), with a −7.8% CAGR.

Canada's performance

Canada's seafood exports to South Korea have seen mixed results over the years. In terms of value, total fish and seafood imports from Canada increased at a CAGR of 2.6% between 2018 and 2022, growing from $119.4 million to $132.7 million. The star performer in this category has been frozen lobsters (Homarus spp.), which experienced a significant 18.0% CAGR, increasing in value from $34.4 million in 2018 to $66.8 million in 2022. In contrast, live, fresh or chilled lobsters (Homarus spp.) experienced a decline of 7.6% in CAGR over the same period, reducing its value from $67.8 million to $49.4 million.

In terms of volume, total fish and seafood imports from Canada grew at a 6.5% CAGR from 2018 to 2022, with total imports increasing from 2.8 million kilograms to 3.6 million kilograms. Frozen lobsters again saw growth, with a 6.7% CAGR in volume, rising from 1.7 million kilograms in 2018 to 2.2 million kilograms in 2022. However, the volume of live, fresh or chilled lobsters experienced a sharp decline, with a −10.5% CAGR, reducing its volume from 2.8 million kilograms to 1.8 million kilograms. One standout product in terms of volume growth is frozen cuttle fish and squid, which had an impressive 108.0% CAGR from 2019 to 2022, increasing from 0.1 million kilograms to 0.9 million kilograms. Overall, Canada's seafood export performance to South Korea has shown both areas of growth and decline, with frozen lobsters emerging as a key growth product.

Retail sales by category and distribution

Retail sales of fish, seafood, and processed seafood in South Korea experienced growth between 2018 and 2022, with varying rates across different categories. The overall fish and seafood market grew at a CAGR of 4.8% during this period, increasing from $3,979.8 million in 2018 to $4,793.3 million in 2022. Within this category, crustaceans experienced the highest growth, with a 5.9% CAGR, rising from $914.7 million to $1,151.1 million. Fish and molluscs and cephalopods followed with 4.4% and 4.6% CAGR, respectively.

In contrast, the processed seafood category exhibited a slower growth rate, with a 1.8% CAGR from 2018 to 2022, increasing from $1,043.6 million to $1,121.8 million. Among the subcategories, shelf-stable seafood grew at a modest 0.6% CAGR, while chilled processed seafood and frozen processed seafood experienced slightly higher growth rates of 3.0% and 4.2%, respectively.

Looking ahead, the forecast for 2022-2027 predicts continued growth across all categories. The overall fish and seafood market is expected to grow at a 4.9% CAGR, reaching $6,086.7 million in 2027. Crustaceans are projected to maintain the highest growth rate, at 7.1% CAGR, while fish and molluscs and cephalopods are expected to grow at 4.1% and 4.4% CAGR, respectively. The processed seafood category is also projected to grow, albeit at a slower pace, with a 2.2% CAGR. Within this category, shelf-stable seafood, chilled processed seafood, and frozen processed seafood are expected to grow at 3.0%, 1.5% and 0.9% CAGR, respectively, by 2027.

South Koreans are now seeking more convenient ways of cooking, such as using ready-to-heat items. This trend is also observed in processed meat, seafood, and alternatives to meat, leading to stagnation for product types that require more steps in the cooking process. Also, South Koreans are increasingly interested in healthier options in processed meat, and the ongoing health and wellness trend is supporting the growth of processed poultry and seafood. White meat is considered much healthier than red meat, particularly for protein intake, leading to the surge in processed poultry and seafood popularity.

The distribution channels of processed meat and seafood in South Korea have experienced notable changes between 2018 and 2022, with the retail landscape shifting towards online platforms. The retail offline channel, which accounted for 93.2% of the market share in 2018, decreased to 81.6% in 2022, with a CAGR of −3.3%.

Within the retail offline channel, grocery retailers experienced a decline in market share from 89.8% in 2018 to 77.7% in 2022, with a −3.6% CAGR. Among grocery retailers, convenience stores saw a modest growth of 0.7% CAGR, while supermarkets and hypermarkets faced declines of −4.0% and −4.3% CAGR, respectively. Discounters and warehouse clubs, on the other hand, experienced significant growth, both at 7.5% CAGR. Food/drink/tobacco specialists and small local grocers faced a decline in market share, with −6.9% and −5.0% CAGR, respectively.

The non-grocery retailers channel showed growth, increasing from 3.4% in 2018 to 4.0% in 2022, with a 4.1% CAGR. General merchandise stores were the primary drivers of this growth. However, the most significant change in distribution channels occurred in retail e-commerce, which experienced a substantial increase in market share from 6.8% in 2018 to 18.3% in 2022, with an impressive 28.1% CAGR. This shift indicates a growing preference for online shopping among consumers in South Korea for processed meat and seafood products.

Competitive landscape

The processed seafood industry in South Korea is dominated by a few major companies and brands, as shown in the historic retail sales data from 2018 to 2022. Dongwon F&B Co., Ltd., CJ CheilJedang Corporation, and Sajo Daerim Corporation hold the top positions in the processed seafood market, with respective CAGRs of 2.3%, 1.4% and 1.3% from 2018 to 2022. In 2022, Dongwon F&B held the largest market share, at 36.8%, followed by CJ CheilJedang at 15.1% and Sajo Daerim at 12.9%.

Looking at specific product categories, Dongwon F&B Co., Ltd. dominates the shelf-stable seafood market with a 59.8% share in 2022, while Sajo Daerim Corporation leads the chilled processed seafood market with a 31.0% share. In the frozen processed seafood segment, CJ CheilJedang Corporation holds the largest market share with 27.6%.

The top brands in the processed seafood market include Dongwon, Daerim and CJ, which have shown mixed growth rates from 2018 to 2022. The Dongwon brand experienced a modest growth of 1.0%, while Daerim and CJ faced declines of −0.4% and −5.6%, respectively. Among the shelf-stable seafood brands, Dongwon Tuna and Sajo Tuna exhibited growth, while Chunhajangsa remained stable. In the chilled processed seafood segment, Samho Fish Cake showed the most significant growth with an 18.4% CAGR, while the CJ brand declined. In the frozen processed seafood category, CJ demonstrated strong growth with a 14.1% CAGR, while Daerim and Hansung Frozen Fish Cutlet experienced declining growth rates.

New product launch analysis

Between 2018 and 2022, South Korea experienced a steady number of new product launches in the fish and fish products market, with a total of 4,196 product launches across the years. The yearly product launches fluctuated, with 900 launches in 2018, 772 in 2019, 872 in 2020, 780 in 2021, and returning to 872 in 2022.

The top five categories of product launches in this period were Processed Fish, Meat & Egg Products (1,464 launches), Meals & Meal Centers (1,120), Snacks (605), Sauces & Seasonings (567) and Soup (251).The top five claims for these products included Convenience (1,978), Positioning (801), Ethical & Environmental (468), Natural (399) and Minus (162).

Regarding packaging, the most common types were Flexible (1,350), Flexible Stand-Up Pouch (631), Tray (485), Skinpack (417), and Flexible Sachet (317). In terms of launch types, New Variety/Range Extension was the most prevalent (1,898), followed by New Product (1,797), New Packaging (368), Relaunch (121), and New Formulation (12). The top five flavours (including blends) featured in these products were Unflavoured/Plain (829), Kimchi (174), Prawn/Shrimp (124), Salt/Salted (86), and Spice/Spicy (81).

Finally, the top five ingredients in the new product launches were Shrimp (Food) with 815 instances, Fish and Fish Products (Food) with 570, Anchovy (Food) with 551, Squid (Food) with 467, and Skipjack Tuna (Food) with 299.

Examples of new product launches

Opportunities for Canada

The Canada-Korea Free Trade Agreement (CKFTA), which came into force on January 1, 2015, has created numerous opportunities for Canadian businesses to expand their presence in the South Korean market. The CKFTA has significantly reduced or eliminated tariffs on a wide range of products, including seafood, offering Canadian exporters a competitive advantage in the South Korean market.

As shown in the historical data, frozen lobsters (Homarus spp.) have experienced significant growth in the Korean market. With the CKFTA providing a competitive edge through reduced tariffs, Canadian exporters should continue to focus on promoting and expanding their frozen lobster exports to South Korea. Additionally, exploring opportunities in other high-demand seafood products, such as frozen cuttle fish and squid, can further enhance Canada's presence in the Korean market.

For additional information on CKFTA, Canadian exporters should consult:

• Canada-Korea Free Trade Agreement (CKFTA)
• Opportunities and Benefits of CKFTA for Agri-Food Exporters

The Canada Tariff Finder will help you determine tariff information for the CETA market and other countries with which Canada has a free trade agreement.

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.

• Find a Trade Commissioner

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For additional information on the upcoming Seoul Food & Hotel 2023 trade show, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
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Resources

• Euromonitor International, 2023
• Global Trade Tracker, 2023
• Mintel Global New Products Database, 2023

Sector Trend Analysis – Fish and seafood trends in South Korea
Global Analysis Report

Prepared by: Rouzbeh Parsi, Co-op Student

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