Why this is important to Wisconsin businesses: The U.S. is a major agricultural product exporter to South Korea, so Wisconsin companies may find opportunities there.
South Korea, a country the size of Indiana, has the 13th largest economy in the world but produces only 46% of the food needed for its population of 52 million.
In 2023, the U.S. exported $8.8 billion in agricultural products to South Korea, representing 25% of the country’s agriculture and food imports, according to the U.S. Department of Agriculture’s Global Agricultural Information Network (GAIN). That made South Korea the fifth-largest market for U.S. food-related products.
Retail food sales in South Korea totaled $137 billion in 2023, which was 31% of all retail sales, excluding automobiles, the GAIN report said. Grocery supermarkets were most commonly used for food purchases, but online businesses have been capturing a growing portion of the sales. In 2023, food, agricultural products, and food delivery services made up 30% of all online sales in South Korea.
In 2022, South Korea had nearly 31,500 food processing companies that generated a combined $63 billion in sales. Those companies rely heavily on imported ingredients, though, and the U.S. supplied $2.7 billion, or 15%, of those imports in 2023, according to GAIN.
Total retail grocery sales reached a record $137 billion in South Korea in 2023, up 5.7% from 2022 levels, partly due to inflation.
The report said the top food-related product categories seeing growth in South Korea include candy and gum, beer, tea, chicken products, bakery goods, cereals, and pasta.
South Korean retailers rely heavily on independent importers or intermediary distributors such as trade agents or wholesalers for imported food products rather than dealing with individual producers, according to GAIN.
Wisconsin companies that make food-related products may find opportunities to make connections within South Korea’s market.
Related Posts
