South Korea Food & Drink Report Q1 2008

Publication Date	January 2008
Publisher	Business Monitor
Product Type	Report
Pages	74
ISBN Number	1749-298X
Product Code	BMI00992

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£425.00
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Summary

South Korea's rating of first place out of 14 Asia Pacific markets in BMI's new Food and Drink Business Environment Ratings says much about the existing and remaining potential of this market's increasingly developed food and beverage sector. However, the leading local companies are already well into their preparations for the impending day where South Korea's market maturity begins to resemble saturation.

Leading South Korean mass grocery retailers, Lotte Shopping and Shinsegae have been vocal for some time about their desire to become major regional players, with both looking to the immense and highgrowth Chinese market as a point of immediate strategic focus. Both have stressed the importance of a strong presence in truly emerging markets, while using the now developed South Korean grocery retail market as a backbone for regional expansion. Elsewhere, the final months of 2007 have seen the country's leading food and beverage players as keen to diversify internationally in order to offset the threat of market maturity - leading local dairy producer Maeil Dairy Industry's acquisition of a stake in Vietnam's Hanoi Milk Company for US$218mn being one such example.

Ambitious South Korean companies are right to prioritise international growth; BMI has for some time viewed the country as a developed rather than an emerging market and our growth forecasts for the various food and beverage sub-sectors reflect this. Although not inconsiderable when compared to growth in the immensely saturated market of Japan for example, a coffee sales growth forecast of just 11.9% to 2012, or an alcoholic drinks sales growth forecast of 12.7% to US$1.4bn in 2012, are indicative of a market in which explosive sales growth is no longer realistic.

That said, however, retailers and manufacturers would be wrong to take their eye off the ball in South Korea for fear of a smaller, more focused player making inroads into their market share by committing to the few high-growth categories that remain. South Korea's Business Environment Ratings position, backed by a number of our industry forecasts this quarter, highlight strong - if un-explosive - growth opportunities. South Korea can still be a goldmine for retailers and food and beverage producers provided they can meet the specific and often demanding needs and wants of local consumers. BMI's forecast for the discount retail sector is an excellent example of this. By addressing the desire of local shoppers to spend on non-essential food and drink products and to consume within a modern environment, but coupling it with the inherent price sensitivity that has become commonplace since the Asian financial crisis, the discount retail sector has gone from strength to strength. To 2012, BMI expects discount retail sales to increase by 40.3%, compared to general sector growth of 32.3%. Many such opportunities remain, provided companies are willing to balance their international aspirations with a long-term commitment to South Korea.

Content

Executive Summary
Business Environment
Regional Food and Drink Business Environment Ratings
South Korea's Food and Drink Business Environment Ratin
SWOT Analysis
Mass Grocery Retail
South Korea Mass Grocery Retail Industry SWOT
Food and Drink
South Korea Food And Drink Industry SWOT
Macroeconomic Outlook
Retail
Regional Overview: Declining Role Of Independent Retail In Asia Pacific
Industry Forecast Scenario
Industry Developments
Market Overview
Food And Drink
Regional Overview: Confectionery in the Asia Pacific region
Industry Forecast Scenario
Food
Drink
Industry Developments
Agriculture
Food
Drink
Market Overview
Agriculture
Food
Drink
Tobacco
Industry Forecast Scenario
Industry Developments
Market Overview
Competitive Landscape
Key Players
Mass Grocery Retail
Food and Drink
Regional Company Case Studies
Food: Unilever In The Asia Pacific Region
Drink: San Miguel Corporation In The Asia Pacific Region
Mass Grocery Retail: Metro In The Asia Pacific Region
Company Analysis
Mass Grocery Retail
Lotte Shopping
Samsung Tesco Homeplus
Food
Maeil Dairy Industry
Nong Shim Co Ltd
Drink
Oriental Brewery
Food & Drink Ratings Appendix
Introduction: Revised Methodology
Ratings Overview
Ratings System
Indicators
Limits of Potential Returns
Risks to Realisation of Potential Returns
Weighting
Weighting
BMI Forecast Modelling
How We Generate Our Industry Forecasts
Retail Industry
Sources
List of Tables
- Table: Asia Pacific Food & Drink Business Environment Ratings - Q108
- Table: South Korea - Economic Activity
- Table: MGR Versus Independent/Traditional Retailers In Selected Asia Pacific Markets, 2006 (store numbers)
- Table: MGR versus Independent/Traditional Retailers In Selected Asia Pacific Markets, 2006 (sales, US$mn)
- Table: South Korea MGR Indicators. Sales Value by Format (US$bn) - Historical Data & Forecasts
- Table: Grocery Retail Sales by Format - Historical Data & Forecasts
- Table: Structure of South Korea's Mass Grocery Retail Market, 2006
- Table: Sales Breakdown by Retail Format Type - 2006
- Table: Leading Global Chocolate Manufacturers
- Table: Leading Confectionery Companies in the Asia Pacific Region
- Table: Food Consumption, Category Sales & Trade Indicators - Historical Data & Forecasts
- Table: South Korea Beverage Sub-Sectors, Value/Volume Sales - Historical Data & Forecasts
- Table: South Korea Agricultural Sub-Sector Production
- Table: South Korea Organic Agricultural Data
- Table: South Korea Dairy Industry Data (tonnes, unless
- Table: Cigarette Value/Volume Sales - Historical Data & Forecasts
- Table: Key Players in South Korea's Mass Grocery Retail Sector, 2006
- Table: Key Players in South Korea's Food & Drink Sector, 2006
- Table: Per Capita Food Consumption in Selected Asia Pacific Markets (US$)
- Table: San Miguel Corporation In The Asia Pacific Region
- Table: San Miguel Corporation Revenue And Earnings Growth By Operating Division, Q107 (%)
- Table: San Miguel Corporation - Sales By Market (US$mn)
- Table: San Miguel Corporation - Key Historical Data
- Table: Metro Group - Five-Year Financial Results

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Product features / use

Scope	Expert Insight/Opinion
Level	General Industry Strategies
Data	Detailed Market Forecasts
Profiles	Profiles of Key Companies
Features	Contains SWOT Analysis
Extra Info	Consumer Trends Highlighted