South Korea Health Functional Ingredient Recognition: Recap and Analysis

The health functional food market in South Korea has been rapidly growing in recent years, driven by the increasing awareness of health and the growing number of silver consumers. The demand on various products accelerates the R&D on new functional ingredients. The application cases of health functional ingredients recognized by Ministry of Food and Drug Safety (MFDS) in 2022 is forty-five, doubling that in 2021. 

In 2022, MFDS passed forty-five applications for functional ingredients. The details are as below:

(*"Additional Application" refers to the application for new efficacy of the recognized ingredient or the application for using the recognized ingredients by new enterprises.)

Amongst the applications for functional ingredients, thirty-five cases are for the recognition of new functional materials, reaching the peak of new ingredient application in the recent decade (See Figure 1).

(Figure 1. Functional Material Recognition Tendency, data source: MFDS²)

Until 2014, the proportion of imported ingredients among the recognized functional ingredients was high at about 70%, but since 2015, the proportion of domestic ingredients has been increasing, accounting for more than 50% (See Figure 2). The increase in the recognition rate of Korean domestically developed functional ingredients was achieved due to the state’s supports for functional ingredients R&D and the improvement of standardization technology for ingredients through the gradual mandatory establishment of Good Manufacturing Practices (GMP).

(Figure 2. Functional Material Recognition Cases, data source: MFDS²)

In terms of ingredients’ efficacies, “joint health enhancement” accounts for the most, followed by “weight loss”, “skin health”, “cognitive function improvement”, and “blood cholesterol reduction” (See Figure 3).

(Figure 3. Efficacies of the Recognized Functional Ingredients 2022, data source: MFDS²)

Seen from the status of efficacy recognition for health functional foods in the last five years, the most applied efficacies are body fat reduction (44 cases), skin health (37 cases), immune enhancement (26 cases), liver health (17 cases), and menopausal health care for women (15 cases). However, the application status in 2022, with muscle strength improvement (5 cases), memory improvement (3 cases), and cognitive function improvement (3 cases) in an uptrend, indicates that the industry shows a growing interest in the R&D on functionalities that can benefit the elderly and other specific groups.

Top 5 High-Profile Functional Ingredients 

According to the 2022 food manufacturing records, the most produced functional ingredients in descending order are red ginseng, vitamins and minerals, probiotics, EPA/DHA oil, and protein.   

Red ginseng, which has taken the top spot in the market for the past 5 years, is made by ginseng aged four years or more. It can help improve immunity, blood circulation, memory, provide antioxidant effects, and aid in women's health during menopause.

Vitamins and minerals are supplements that provide various vitamins such as folic acid, zinc, and others. Vitamins and minerals can contribute to antioxidant effects and enhance immune function.

Probiotics promote the growth of beneficial bacteria and inhibit harmful bacteria, which can help with smooth bowel movements and intestinal health.

EPA DHA oil is extracted from fish, algae, and other marine sources. It can help improve blood triglyceride levels, blood circulation, memory, and eye health.

Protein, which has gained attention particularly among the health-conscious MZ generations, can assist in the formation of body tissues such as muscles, enzymes, hormones, and antibodies.

Noteworth Points 

The increase of functional ingredient recognition in 2022 reflects the health revitalization in South Korea, showing the fact that more players enter the market. The entry of various products has brought different products and provided more options for consumers. However, at the same time, the health functional food market would truly become more competitive, especially for imported products. With numerous players in the market, overseas enterprises should be aware of the market share that may be taken by the Korean domestic products that have more popularity among Korean citizens and are at low prices. Innovation in product development and unique marketing strategies can help enterprises differentiate their products and gain market share. 

Regulatory compliance is also an essential point. The Korean government has strict regulations governing the health functional food market. Selling non-compliance products is prohibited in South Korea and the seller will face a heavy administrative penalty. Compliance also means safety and brand reputation. As Korean consumers are highly brand-conscious, a strong brand can be a significant differentiator in the market. A trustworthy brand image can be a substantial differentiator in the market. Therefore, enterprises are suggested to familiarize themselves with the relevant laws and ensure their products meet the required standards. 

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