[Distribution Hot People] Formed a TF Team for a Year of Proactive Preparation... Launch of the First Functional Label General Food
Kang Jeong-il, Center Director of Pulmuone Technology Institute
Registered 10 Products Including Calcium Soft Tofu
Probiotic Beverage Sales Increase by 20%
Challenging Overseas Markets Such as the US and Japan
[Asia Economy Reporter Seungjin Lee] Amid the heightened interest in health due to the impact of COVID-19, competition in the functional labeling general food market is fierce.
Since the end of last year, when functional labeling became possible for general foods, related product launches have been continuous, with Pulmuone leading the market by releasing Korea's first and second functional labeling general food products.
Following the implementation of the Ministry of Food and Drug Safety's 'General Food Functional Labeling System' at the end of last year, Pulmuone developed and registered the first domestic functional labeling general food product, 'PGA Plus Calcium Soft Tofu,' and the second product, 'Fermented Red Yeast Natto.' Currently, a total of 10 products have been registered as functional labeling general foods. The background behind Pulmuone's ability to proactively launch related products lies in the Pulmuone Technology Institute.
One Year of Preparation Following Regulatory Relief Announcement
On the 24th, Kang Jeong-il, head of the Health Life RTC Center at Pulmuone Technology Institute, who met with Asia Economy, explained, "When the related regulations allowing functional labeling on general foods were administratively announced in 2019, we formed a task force (TF) consisting of industry, academia, and research sectors centered on the Technology Institute and conducted research for one year. As soon as the general food functional labeling system was implemented, we were able to immediately launch products that had been developed through years of research and development (R&D)."
To display functionality on general foods, only 29 raw materials approved for health functional foods can be used. Additionally, numerous certifications must be obtained before launch, making the process complicated.
Functional labeling general foods can secure high competitiveness within the same product category, making it a hot topic in the food industry. In fact, Pulmuone's launched product, 'Plant-based Probiotics Stomach & Capsule,' saw an approximately 20% increase in average daily sales after the phrase "This product contains probiotics known to promote the growth of beneficial bacteria, inhibit harmful bacteria, aid bowel movements, and support intestinal health" was included, compared to before the functional labeling was applied.
Center head Kang said, "Even for the same beverage product, consumer trust is significantly influenced by whether or not there is a phrase indicating health benefits. Pulmuone has strengths based on 30 years of know-how by simultaneously operating general food and health functional food businesses," he explained.
Expanding to Overseas Markets such as the U.S. and Japan
Along with the expansion of the domestic functional food market, Pulmuone is also considering overseas business expansion. In Japan, the functional labeling food system was first introduced and implemented in 2015, and the related market is estimated to be 250 billion yen (approximately 2.6 trillion KRW), creating a market much larger than Korea's. Additionally, demand for functional foods is expected to increase in major countries such as the U.S. due to COVID-19, and Pulmuone plans to monitor overseas market trends and review related products accordingly.
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Center head Kang stated, "Pulmuone has a distinctive advantage as a probiotic functional labeling food applying patented probiotic strains derived from kimchi, a plant source, rather than milk, allowing it to demonstrate strengths in any domestic or international market. Moving forward, we plan to develop new products in the beverage and healthy snack categories focusing on functionalities such as gut health, immunity, and cholesterol improvement," he said.
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