As the 5th largest country export market for the United States, Korea provides a promising market for U.S. agricultural products. In 2021, Korea imported about $43 billion agricultural & food products from all over the world and the U.S. supplied a quarter of it, ranking number one. Other key suppliers were China, Australia, Brazil, and Vietnam. Korea's overall agricultural imports this year are forecast to top the 2021 value by 20 percent partly due to increased demand from both the retail and processing sectors. From January to October this year, the U.S. exports already surpassed its last year’s record for the same period. U.S. food and agricultural products will continue to be competitive in the market long-term considering ongoing socio-economic shifts with extended consumer concerns over quality, value, and sustainability.

Exporter Guide_Seoul ATO_Korea - Republic of_KS2022-0030

Domestic milk production is forecast to decrease to 2 million tons in 2023. 2022 milk production is projected to drop to 2.01 million tons after reaching 2.34 million tons in 2021. Milk production is expected to show a decreasing trend due to the decreasing number of dairy farms and falling demand for milk. Cheese consumption, in contrast, is gradually increasing. However, imports in 2022 may experience an unusual drop due to the weakening Won exchange rate, particularly against the U.S. dollar.

Dairy and Products Annual_Seoul ATO_Korea - Republic of_KS2022-0022

In 2020, sales of the HRI food service sector reached 140 trillion KRW (122.2 billion USD), a decrease of 3.1 percent from 2019. The pandemic affected the sector harshly and most of its subsectors experienced decreases in sales. The government measures attempting to contain the spread of the virus and dropped traffic of domestic and international consumers damaged the sector's business performance. However, it is forecast to recover, though at a slow pace, as businesses are coming up with innovative strategies and consumer spending on dining out is on the gradual rise which will lead to growth of employment and sales in relevant industries.

Food Service - Hotel Restaurant Institutional_Seoul ATO_Korea - Republic of_KS2022-0021

Korean seafood imports totaled $5.74 billion in 2021, up 9 percent from 2020, with imports from the United States increasing slightly to $217 million. The United States remains the fifth largest seafood exporter to Korea with a 3.8 percent market share. Korean consumers generally view U.S. fishery products as high quality and safe, but regional competitors often have lower prices. U.S. fishery exports to Korea are generally focused on lower volume/higher value market segments.

Korea Seafood Market Update 2022_Seoul ATO_Korea - Republic of_KS2022-0019

The United States is the leading supplier of imported consumer-oriented agricultural products to the Korean retail industry, shipping a record $6.2 billion in 2021. The outlook for U.S. products in the Korean retail industry is excellent for a wide range of products, including beef, pork, processed meat, vegetables, fruits, nuts, dairy products, juices and soft drinks, alcoholic beverages, condiments and sauces, processed organic foods, coffee, bakery products, snacks and confectioneries.

Retail Foods_Seoul ATO_Korea - Republic of_KS2022-0017