What is the next station for processed market?

What is the next station for processed market?

Everyone loves sausage, ham, and all types of processed meat. It’s easy to eat, cheap, and mostly, tasty. Thus, it is no wonder that processed meat market is growing with a tremendous growth rate in South Korea. According to Ministry of Food and Drug Safety Department in South Korea government, the processed meat’s market size has grown from 3.1 billion dollars in 2014 to 5.1 billion dollars by the year of 2018, with CAGR of 13.1%


However, there is growing changes and challenges to processed meat producers as the customers’ preference is changing. Firstly, as there are more and more one-person households are increasing in South Korea (by the year of 2018, the portion of one-person households occupies about 18% of whole South Korea’s households), Home-Meal-Replacement (HMR) types of foods are facing the boom. Secondly, so called ‘well-being’ and ‘premium’ trends are not the exception for processed meat industry; even major players are introducing low-fat, or low sodium version of processed meat to capture these health-oriented target customers. Moreover, as there comes more new types of cooking equipment that requires less time but more comfortable cuisine – such as air-fryers – there is increasing demand of ‘simple-recipe’ processed meat. Finally, as there are increasing numbers of elders, so called ‘Silver Generation’ in South Korea, those processed meats that are easy to chew and swallow (silver foods) are gaining demands.

Processed meat is aware of by far the most comfortable yet favorable type of food from all types of customers. However, if processed meat producers are able to counter with fast-paced change in food industry trend, the glory of the industry growth will shine and last better with customers’ surplus is also being increased.

Hebronstar Insights
Seong Jun Kim / Business Analyst