Agricultural and food product exports remain in surplus for 12 months
The Ministry of Agriculture, Food and Rural Affairs (Minister Song Mei-ling, hereinafter referred to as the Ministry of Agriculture, Food and Rural Affairs) announced that as of the end of August 2024, the cumulative export amount of agricultural and food products (K-Food) increased by 8.7% compared to the previous year to $6.48 billion (tentative). This is the highest export performance ever as of the end of August, and the result of 12 consecutive months of year-on-year growth.
Agricultural and food product exports: (August ’23) USD 59,566 million → (August ’24) USD 64,763 million (↑8.7%)
Monthly cumulative export growth rate compared to the same period last year: (23.9) 0.2%↑ → (24.3) 3.0%↑ → (24.3) 3.6%↑ → (6.7%↑) → (8.7%↑)
The top export items, ramen, snacks, beverages, and rice processed foods, all recorded the highest export performances ever. In particular, ramen increased by 31.7% year-on-year due to the popularity of spicy ramen, reaching $800 million in exports, and snacks and beverages also grew by more than 10% year-on-year. Among the major items, the one with the highest growth rate was rice processed foods such as instant rice and frozen kimbap, which increased by 41.7% year-on-year.
Major export items (growth rate): Ramen $800 million (↑31.7%), tobacco $729 million (↑7.0%), confectionery $494 million (↑15.4%), beverages $449 million (↑13.6%), coffee preparations $222 million (↑3.4%), processed rice $190 million (↑41.7%)
Exports of fresh agricultural products such as pears and grapes decreased by 0.6% year-on-year, but the decline is easing. The main cause of the export decline in the first half of this year was the insufficient domestic supply due to reduced production caused by abnormal weather. However, since the fresh agricultural product harvest is good in the second half of the year, export volume can be secured, so export performance is expected to recover to the previous year’s level by the end of the year.
By market, most regions showed an upward trend, and exports to the US in particular increased by 22.8% year-on-year, exceeding $1 billion in exports. The growth rate was high for ramen and rice processed foods that gained popularity mainly through social networking services (SNS). The Ministry of Agriculture, Food and Rural Affairs is focusing on entering second-tier cities (Houston, Austin) in the southern region of the US where K-food is relatively less prevalent, and is expanding the new entry of K-food through promotion and consultation with large retail stores located in the southern region.
Meanwhile, the Ministry of Agriculture, Food and Rural Affairs is discovering and expanding collaboration models between large companies and SMEs to foster small and medium-sized exporters and support joint growth with large companies this year. The first case, GS Retail and Bongtang, has been selling localized Bongtang donuts at seven GS25 convenience stores in Mongolia and Vietnam since August. In addition, Lotte Chilsung Beverage and Seoul Jangsu are planning to jointly promote and market ‘Maksa (Makgeolli + Cider),’ a collaboration model that will be sold at Chinese retailers from late August.
GS-Bongtang: Sales of Bontang donuts through GS’s overseas distribution network (Mongolia, Vietnam), online and offline promotion
Lotte-Jangsu: ‘Maksa’ tasting event for Chinese consumers, ‘Bragging out my own mixing ratio’ online marketing
Yang Joo-pil, the Food Industry Policy Officer of the Ministry of Agriculture, Food and Rural Affairs, said, “I hope that ‘Maksa,’ a Korean drinking culture, will cool down Chinese consumers as the hot weather continues.” He added, “We will continue to grow exports by introducing various SME products overseas through collaborative models such as ‘Maksa,’ and discovering and promoting second-tier city distribution stores and importers to expand export territories in major export target countries.”
Editor. Hong Se-young
