K-Food Plus Exports Reached USD 6.21 Billion in First Half of 2024, up by 5.2% from Year Earlier

Sejong, 11 July 2024 — On 3 July, the Ministry of Agriculture, Food and Rural Affairs (MAFRA) announced that the cumulative value of exports of “K-Food Plus”¹⁾ for the first half of this year reached USD 6.21 billion (tentative figure), up by 5.2% from a year earlier. In particular, exports of agri-food products rose to USD 4.77 billion, up by 6.5% from a year earlier.

1) K-Food Plus (K-Food+) is a term referring to agri-food products combined with products from the industries that have forward and backward linkages with agriculture, such as smart farms, agricultural equipment, pet food, veterinary medicine, etc.

<K-Food Plus Export Growth>

• Value of exports of K-Food Plus: USD 5,905.7 million in June of 2023 → USD 6,211.9 million in June of 2024 (up by 5.2%) 

• Value of exports of Korean agri-food products: USD 4,468.3 million in June of 2023 → USD 4,766.4 in June of 2024 (up by 6.7%)

• Value of exports of products from forward- and backward-linked industries: USD 1,437.3 million in June of 2023 → USD 1,445.5 million in June of 2024 (up by 0.6%)

Biggest importers of South Korean agri-food products are the U.S., China and Japan. Exports to the U.S. showed strong growth thanks to robust U.S. consumer spending supported by a stabilizing labour market and a declining trend of inflation. Exports to China came back on a growth track in May this year as confidence among Chinese consumers bounced back slowly while Korean companies opened their stores on Chinese e-commerce platforms and carried out all-out efforts to promote their products to Chinese consumers, with a focus on marketing campaigns using influencers. Exports to Japan, meanwhile, decreased by 7.0% from a year earlier, thus having brought down the ranking of Japan to a third spot in terms of an export market size. Japan was the largest importer of Korean agri-food products last year. The decline in exports is attributable to a continued depreciation of the Japanese yen, high inflation, and the resulting erosion of real wages. Exports to other regional markets, however, including Europe, Latin America, the Middle East, and Oceania, increased, with a rise of 10% from a year earlier.  

<Value of K-Food Plus Exports to Major Markets in First Half of 2024>

• USD 736.8 million to the U.S., up by 17.0% from a year earlier

• USD 702.8 million to China, up by 3.1%

• USD 671.3 million to Japan, down by 7.0%

• USD 935.7 million to the ASEAN, up by 3.3%

• USD 112.7 million to Latin America, up by 12.1%

• USD 155.0 million to the Middle East, up by 10.7%

• USD 147.1 million to Oceania, up by 14.5%

The largest export items for the first six months of this year are instant noodles (ramyeon), processed rice-based food, biscuits and confectionery, non-alcoholic beverages, and kimchi.

<Value of Exports of Major Items in First Half of 2024>

• Instant noodles (ramyeon): USD 590.2 million, up by 32.3% from a year earlier

• Biscuits and confectionery: USD 354.1 million, up by 11.4%

• Non-alcoholic beverages: USD 325.7 million, up by 9.6%

• Ginseng: USD 152.8 million, up by 1.2%

• Processed rice-based foods: USD 136.9 million, up by 41.4%

• Kimchi: USD 83.8 million, up by 4.0% 

Instant noodles led the pack, with USD 590.2 million worth shipped overseas in the January-June period—a rise of 32.3% from a year earlier. Exports of South Korean instant noodles increased in large volumes thanks to the viral social media challenge of eating spicy Korean noodles, coupled with Korean companies’ timely launch of new noodle products tailored to different tastes of global consumers. Importantly, each of instant noodle shipments to China and the U.S.—the largest importers of the item—surpassed the mark of USD 100 million over the past six months, as more and more Korean products became available on online stores and at hypermarkets in the countries. Exports of Korean instant noodles to Europe had also been on a steady rise, leading to an all-time high of more than USD 100 million in the six-month period.

<Value of Exports of Korean Instant Noodles in First Half of 2024>

• Exports to China: USD 113.8 million, up by 30.3% from a year earlier

• Exports to the U.S.: USD 100.1 million, up by 58.3%

• Exports to the Europe: USD 101.7 million, up by 52.1%

There are notable gains in other export items, too. Overseas shipments of South Korean ginseng products recently started growing and recorded USD 152.8 million over the past six months, up by 1.2% from a year earlier. Export pace for Korean ginseng was sluggish earlier this year as competition in the markets for health and functional food products grew fiercer. However, continued efforts to raise consumers’ awareness of Korean ginseng, such as tasting events run through cooperation with South Korean diplomatic offices, and opening of more Korean ginseng specialty stores in China and the U.S., paid off with an year-on-year increase in exports at the end of June this year.

<Value of Exports of Korean Ginseng in First Half of 2024>

• Exports to China: USD 49.0 million, down by 5.7% from a year earlier

• Exports to the U.S.: USD 12.2 million, up by 19.4%

• Exports to the ASEAN: USD 17.5 million, up by 1.5%

Rice-based food products showed the highest export growth from a year earlier. USD 136.9 million worth of Korean rice-based food products—precooked frozen kimbap (Korean seaweed rice rolls), tteokbokki, rice-based beverages, makgeolli (Korean rice wine), etc.—were shipped overseas from January through June this year, up by 41.4% from a year earlier. The export is increasing because of a growing popularity of gluten-free Korean precooked rice products, such as precooked frozen kimbap, as a convenient- and healthy-eating option. The growing export is also attributable to an increase in Korean rice-based food products being displayed on shelves in large retail stores in the U.S. such as Costco. 

<Value of Exports of Korean Rice-based Food Products in First Half of 2024>

• Exports to the U.S.: USD 78.1 million, up by 60.7% from a year earlier

• Exports to Vietnam: USD 8.0 million, up by 23.5%

• Exports to Europe: USD 10.9 million, up by 65.3%

Kimchi, the most representative Korean food, reached USD 83.8 million in exports in the first half of this year, up by 4.0% from a year earlier. Importantly, exports of kimchi to the U.S. hit an all-time high, thanks to growing consumer interest in fermented and vegan foods. Exports of kimchi to Europe over the past six months also rose by more than 40% from a year earlier, supported by the launch of new kimchi products that can be stored and distributed at room temperature, as well as by promotional campaigns run in connection with Korean culture festivals and events.

<Value of Exports of Kimchi in First Half of 2024>

• Exports to the U.S.: USD 24.1 million, up by 18.9% from a year earlier

• Exports to Europe: USD 12.7 million, up by 40.3%

• Exports to the Middle East: USD 8.7 million, up by 30.4%

Industries of forward- and backward-linkages with agriculture also recorded continued export growth. The largest export items in these industrial sectors over the past six months are pet food, veterinary medicine, and agricultural chemicals.

<Value of Exports of Agriculture-Related Items in First Half of 2024>

• Pet food: USD 79.8 million, up by 10.3% from a year earlier

• Veterinary medicine: USD 110.8 million, up by 8.2%

• Agricultural chemicals: USD 411.0 million, up by 109.3%

Exports of pet food products, mainly destined for Japan, Taiwan, and Vietnam, increased by 10.3% from a year earlier to a record high of 79.8 million. The growth trend is expected to continue in the second half of this year, as Korean companies will continue their efforts to open up new export markets (e.g. Malaysia, Indonesia, etc.) by carrying out intensive marketing campaigns and using the Korean wave. 

<Value of Exports of Pet Foods in First Half of 2024>

• Exports to Japan: USD 31.2 million, up by 9.0% from a year earlier

• Exports to Taiwan: USD 11.8 million, up by 14.2%

• Exports to Vietnam: USD 7.8 million, up by 6.2%

Exports of veterinary medicine rose by 8.2% from a year earlier to USD 110.8 million by the end of May this year. Export growth was recorded in a wide range of categories including bovine somatotropin (also known as bovine growth hormone), vaccines, and veterinary medical devices. In particular, exports of vaccines increased by 24.6% from a year earlier, thanks to efforts to open up new overseas markets, including Pakistan, Algeria and other countries. To help keep the growth momentum going, the Ministry of Agriculture, Food and Rural Affairs will continue its efforts to provide necessary support. 

<Value of Exports of Veterinary Medicine in First Half of 2024>

• Bovine somatotropin: USD 19.5 million, up by 29.0% from a year earlier

• Vaccines: USD 14.1 million, up by 24.6%

• Medical devices: USD 23.1 million, up by 5.6%

Exports of agricultural chemicals reached more than USD 400 million in the first half of this year, continuing a growth trend from last year. The year-on-year growth rate in the January-June period increased to 109.3% this year from 103.2% last year. This growth trend is expected to continue in the second half of this year, driven by export growth in Brazil, China, and Vietnam.

<Value of Exports of Agricultural Chemicals in First Half of 2024>

• Exports to Brazil: USD 83.2 million, up by 221.8% from a year earlier

• Exports to China: USD 54.7 million, up by 58.6%

• Exports to Vietnam: USD 53.5 million, up by 325.4%

The Ministry of Agriculture, Food and Rural Affairs has been making diverse efforts to expand K-Food Plus exports by carrying out inter-ministerial collaboration and promoting win-win cooperation between large enterprises and small- and medium-sized enterprises. As an example of such cooperation, GS Retail and Bontemps (a Korean company known for its hot-selling twisted doughnuts) signed a Memorandum of Understanding in April this year and have since been working together to export twisted doughnuts of Bontemps through sales channels of GS Retail in Mongolia and Vietnam.

On the front of exports from forward- and backward-linked industries, the MAFRA worked with the Ministry of Trade, Industry and Energy in the first half of this year to provide exporters of smart-farming technologies and agricultural equipment with favoured short-term export insurance. In the second half of this year, the MAFRA will work together with the Ministry of SMEs and Startups to coordinate their export support policies such as the export voucher programme and look for other ways to cooperate. The MAFRA will also collaborate with the Ministry of Land, Infrastructure and Transport to develop a model of cooperation through which smart-farm companies can team up with well-experienced construction companies to enter overseas markets.