20 Jan 2021
Posted in Consumer
South Korea’s savory snacks market expected to reach US$921.2m in 2024, says GlobalData
The South Korean savory snacks sector is projected to decline from ₩1,094.5bn (US$935.8m) in 2019 to ₩1,079.6bn (US$921.2m) in 2024 at a negative compound annual growth rate (CAGR) of 0.3%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘South Korea Savory snacks – Market Assessment and Forecasts to 2024’ reveals that the sector is majorly driven by the meat snacks category growth which is forecast to register the fastest value CAGR of 0.9% during 2019–2024. The category is followed by pretzels and processed snacks, which are expected to record CAGRs of 0.5% and 0.4% respectively during the next five years.
Sanchi Agarwal, Consumer Analyst at GlobalData, says: “The growth in the South Korean savory snacks market is being driven by busy consumers with hectic schedules. These consumers have limited time to prepare meals, and therefore, demand convenient snacking options to satisfy their hunger pangs and fill the nutrition gaps that arise due to fragmented mealtimes.”
‘Hypermarkets & supermarkets’ was the leading distribution channel in the South Korean savory snacks sector in 2019. It was followed by convenience stores and food & drinks specialists.
The value share of South Korea in the global savory snacks sector is expected to decrease from 0.6% in 2019 to 0.5% in 2024. Similarly, the country’s share at the regional level is expected to decrease from 1.6% in 2019 to 1.2% in 2024.
Nongshim Co Ltd, Orion Confectionery Co, Ltd. and Haitai Confectionery & Foods Co., Ltd are the top three companies in the South Korean savory snacks sector. Cheetos and Kokalcorn are the leading brands in the South Korean savory snacks sector in value terms in 2019.
Ms Agarwal concludes: “Ongoing shift towards healthier products due to the rising health consciousness is significantly impacting the consumers’ products choice in the savory snacks sector. South Korean consumers are seeking products which not only offer convenience but are also ‘better-for-you’ products. This is prompting the manufacturers to offer innovations in terms of formulation to gain consumers’ attention which is likely to drive the sector growth in South Korea.”