Martial Arts: "Global Food and Beverage Market Must Be Targeted Through Ingredient and Functional Differentiation"

[Asia Economy Reporter Hwang Yoon-joo] It has been argued that our companies need to actively pursue differentiation in ingredients and functionality to target the global food and beverage market that has changed after the pandemic.

According to the "Post-COVID Era, Changes in Food and Beverage Consumption Behavior and Global Market Entry Strategies" report released on the 11th by the Korea International Trade Association's International Trade and Commerce Research Institute, the global food and beverage market after the novel coronavirus infection (COVID-19) shows trends such as ▲preference for cost-effective products ▲demand for domestic food ingredients due to border controls ▲use of online and neighborhood marts ▲preference for health foods.

The report stated, "The compound annual growth rate of the global health and wellness grocery market from 2015 to 2019 was only 3.1%, but the growth rate forecast for this year is 6%, nearly twice as fast as before," and advised, "It is necessary to actively develop wellness products that reduce unhealthy ingredients and strengthen ingredients and functions by adding various nutrients and natural components."

The report also said, "Since the progression of COVID-19 and the timing of economic recovery differ by country, sales strategies should also be differentiated by country."

It predicted that for consumers in developed countries, a strategy focusing on improving cost-effectiveness would be effective this year due to increased spending burdens, and from next year, when economic rebound is expected, expanding the proportion of premium products would be a valid strategy. For emerging developing countries, it explained that Brazil and Russia are experiencing a double burden of economic slowdown along with falling oil and raw material prices, while China is showing a V-shaped economic rebound, so differentiated pricing and product composition strategies are needed according to each country's economic recovery timing.

It also called for active investment in online platforms. This is because online sales have increased significantly, and the role of platforms is becoming more important in brand expansion, enhancing price and quality competitiveness, and expanding the customer base. Utilizing proprietary online platforms not only allows faster product launches that match consumer responses but also offers additional advantages such as product promotion and diversification of revenue sources.

Jeong Gwi-il, a research fellow at the Korea International Trade Association, said, "In the post-COVID-19 era, companies must respond agilely to the changing business environment by introducing new services such as delivering products to consumer-designated locations or vehicles and diversifying consumer access channels through online and offline marketing."

This content was produced with the assistance of AI translation services.