FAS/Seoul Monitoring of Media Reporting on Agricultural Issues 

Today's Date: Friday, July 26,  2024

For Coverage:  July 19 ~ 25, 2024

Capacity Changes of Food Products that have Increased Unit Prices Due to Reduced Capacity Must be Indicated Starting from 2025
http://www.foodnews.co.kr/news/articleView.html?idxno=109120
Summary:  The Ministry of Food and Drug Safety (MFDS) announced on July 24^th a revision of the labeling standards for food products.  In accordance with the revision, food products which have increased unit prices due to decreased contents compared to before, also known as shrinkflation, must be labeled on the products starting from January 1, 2025.  The MFDS said that through this revision, they expect to guarantee consumers’ right to know and their product options by accurately labeling the product with exact information on calories, sweeteners and any changes in content.  In addition, this revision also includes: enhancing readability of caloric information of alcoholic beverages and indicating food products for infants and toddlers.

Korea’s Food Exports Up 5.2% in the First Half of 2024
https://www.koreaherald.com/view.php?ud=20240723050822
Summary:  According to the Ministry of Agriculture, Food and Rural Affairs (MAFRA), Korea’s exports of food and related products in the first half of this year increased 5.2%, with the popularity of instant noodles and processed rice products, compared to the same period last year.  Outbound shipments of the food sector, known as “K-Food Plus” amounted to $6.21 billion, compared with $5.9 billion a year earlier.  K-Food Plus encompasses a diverse range of food products and related items, from fresh and processed products to agricultural equipment and solutions.  By products, exports of instant noodles increased 32.3% to $590.2 million and processed rice products rose 41.4% to $136.9 million.  Korean rice products, such as frozen gimbap (seaweed rice rolls), attracted significant attention in the U.S. market as a gluten-free and healthy eating option.

Vegetable and Fruit Prices Continue to Rise
https://n.news.naver.com/mnews/article/659/0000023710
Summary:  The price of vegetables and fruits continues to rise due to the rainy season and heat wave in Korea.  According to Korea Agro-Fisheries and Food Trade Corporation (aT), the average price of 100 grams of lettuce on July 19^th in Jeolla province was 1,530 won, up 50 percent from 10 days ago, and cabbage rose 13.5 percent to 4,320 won per piece.  Watermelon rose 11.4 percent to 21,950 won each, Korean melon and tomatoes rose by 18.2 percent and 13.3 percent, respectively.

Expanding Pet Food Sector
https://www.ajunews.com/view/20240721142313941
Summary:  Companies in the food industry, facing market reductions due to decreasing population derived from a low birth rate and an aging population, are now exploring the pet food segment as the number of households with pets is growing.  According to MAFRA, the proportion of the population with pets reached 28.2% last year, indicating that three out of ten people have pets.  Also, half of the expenditure on raising pets consists of pet food including feed and treats.  Local companies such as Harim Pet Food and Sajo Pet are showcasing premium pet food products of which ingredients are nearly the same as those for human consumption.  The government is also supporting the petfood industry with the aim to grow the industry, which is currently at a size of 1.8 trillion KRW, to reach 3.6 trillion KRW by 2027 and 10 trillion KRW by 2032.  An industry insider commented that the market will expand with growing demand for high-quality pet food, nearly the same as a human-grade quality as the number of households with pets is growing and people consider pets as family members.

Convenience Stores Strengthening the Fresh Produce Selection
https://www.etoday.co.kr/news/view/2380733
Summary:  As consumers doing grocery shopping at convenience stores are increasing, especially among younger generations, companies have adopted strategies strengthening their fresh produce selection.  It is reported that CU saw a 28.9% increase in fresh produce sales between January and July 15 compared to the same period of last year.  Also, Seven Eleven saw a 20% increase, and Emart24 saw a 18% increase.  This growth was mainly driven by consumers in their 20s and 30s.  An industry insider commented that the increasing singe member households tend to purchase groceries at nearby stores for small quantities and this trend has been observed since the pandemic.  Therefore, the convenience store industry is expanding its fresh produce selection while keeping the serving portion small to meet the demand.