The Present and Future of Drinks Market in the Northeast Asia: New Emerging Opportunities in Korea

Transcription

1 The Present and Future of Drinks Market in the Northeast Asia: New Emerging Opportunities in Korea Prof. Junghoon Moon, Ph.D. Seoul National University

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3 Packaged Foods 45.8% Agricultural Products 54.2% Packaged Foods 49.6% Agricultural Products 50.4% ,639.9Bilion USD Source: Datamonitor(2011) ,834.0Billion USD Market size: 12.5% CAGR: 3.3% 1

4 Rest of the World 10.5% Americas 20.1% Asia-Pacific 31.2% Rest of the World 10.6% Americas 21.5% Asia-Pacific 38.9% Europe 38.2% Europe 29.1% Source: Datamonitor(2011) 2

5 The Asia-Pacific area, especially Northeast Asia, is one of the most attractive market for Packaged/Processed Food As of 2011, in terms of market value, packaged food market of Northeast Asia stands for about 25% of whole global packaged food market about 80% of whole Asian packaged food market about 55% of whole European packaged food market Global Market European Market Whole Asian Market Northeast Asian Market Rest of the Asia % 2.6% 4.9% 5.0% 4.6% % 2.6% 4.8% 4.9% 4.7% % 2.6% 4.9% 5.0% 4.8% % 2.6% 4.9% 5.0% 4.7% % 2.6% 4.9% 5.1% 3.7% % 2.6% 4.8% 5.2% 3.2% 4

6 China Japan Korea (South) Population (mil.) 1, (1 st ) (10 th ) 48.9(26 th ) Capital Beijing Tokyo Seoul Life expectancy (M/F) 72/76 80/87 76/83 Monetary unit Yuan yen won Main exports Manufactured goods Vehicles, computer parts, chemicals, and watches Electronic products, machinery and transport equipment GDP($bil.) 5, (2 nd ) 5, (3 rd ) (15 th ) GDP Growth 14.30% 3.00% 6.10% GDP per Capita 4,283 (92 nd ) 42,325 (17 th ) 20,165 (33 rd ) 5

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8 Trends of Northeast Asian Drinks Market

9 Market Value Market Growth ($ Billion) Asia-Pacific Others Global US Europe Market Share Asia-pacific Europe US Others 20.69% 22.04% 24.07% 16.46% 36.01% 17.71% 35.49% 19.13% 34.58% 26.84% 24.76% 22.22% Source: Datamonitor:

10 Market Share (2010) CDI (Category Development Index) 100 Rest of Asia-Pacific 24.6% China Japan Northeast Asia South Korea % Rest of Asian-Pacific 43.7 Market Characteristics 45.7% of Asia-Pacific soft drinks market is driven by Japanese consumers Bottled water accounts for 35% of China soft drinks market RTD tea & coffee accounts for 41.2% of Japan soft drinks market (c.f. Europe: 3.7%) Korean consumers prefer carbonated drinks (28.4%) than Chinese and Japanese consumers 9

11 Market Value Market Growth ($ Billion) Asia-Pacific Others Global US Europe Market Share 16.16% 8.62% 59.14% 16.07% Asia-pacific Europe US Others 18.57% 20.71% 8.91% 56.62% 9.20% 54.45% 15.90% 15.56% Source: Datamonitor 10

12 Market Share (2009) CDI (Category Development Index) 100 Rest of Asia-Pacific 29% China Japan Northeast Asia South Korea % Rest of Asian-Pacific 51.5 Market Characteristics Beer accounts for 65.1% of the Northeast Asia alcoholic drinks market Each country has its own strong local beer brands, and their market shares are very high Northeast Asians consumes less wine but much more beer than Europeans Even though Beer is the most consumed alcoholic drinks in all Northeast Asian countries, Korea consumes less beer but more spirits, compared with Japan and China, 12

13 Emerging Opportunities in Korean Food Market

14 Relative Market Growth Rate Heaven Go there! Invest More! Your competitors must be there, already. Gold Rush Try to be a first mover! Strong brand loyalty program is important potential. Battle Field Focus on marketing to defeat your enemy! Don t invest aggressively! It can be a zero sum game. Chicken Ribs Don t go there! Reduce Investment! Go there only if there s no competition Relative Market Value 6

15 Relative Market Grown Rate Carbonate 993 KRWbn Red Ginseng Beverage 312 Soft Drink Average Mixed Beverage 646 Soy Milk 238 Juice 843 Relative Market Value

16 Relative Market Grown Rate Mixed Beverage 706 KRWbn Soft Drink Average Carbonate 1126 Red Ginseng Beverage 312 Soy Milk 285 Juice 942 Relative Market Value

17 Relative Market Grown Rate Alcoholic Drink Average Beer 3,557 Soju 2,881 KRWbn Makgeolli 300 Whisky 332 Relative Market Value

18 Relative Market Grown Rate Beer 3,826 Makgeolli 550 KRWbn Alcoholic Drink Average Soju 3,007 Whisky 195 Relative Market Value

19 Relative Market Grown Rate Heaven : Value- Growth Beer(3,826) Juice(942) Mixed Beverage(706) Carbonate(1,126) Makgeolli(550) Gold Rush : Value- Growth Red Ginseng Beverage(312) Soy milk(285) Battle Field : Value- Growth Chicken Rib : Value- Growth Soju(3,007) Whisky(195) Relative Market Value

20 The Korean food market is a kind of Gold Rush sector Korea is a fast-changing market which is being westernized First mover s advantages are important 26