MZ Generation Searching for Hip Spots Locally... Rapid Rise of Loconomy in F&B Industry

[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] As the perception that local is hip spreads mainly among the MZ generation, cases of attaching regional names to product names or store names, or creating food or goods themed around local areas are increasing.

Shinhan Card Big Data Research Institute pointed out the rise of ‘Loconomy (Local + Economy)’ as this year’s consumption trend, focusing on consumers’ increased interest in regional value.

‘Loconomy’ is a neologism combining Local (regional neighborhood) and Economy, connecting the value of a region to business and expanding consumer accessibility.

As lifestyles become more segmented and domestic travel has been activated due to COVID-19, consumers’ interest in products or content based on regions and neighborhoods has increased.

Recently, many cafes located in various regions have launched menus using local specialties.

Since these menus can only be enjoyed in the respective regions, consumers show more interest, and travelers often use them as souvenirs to commemorate their trips.

Companies are also actively conducting branding and marketing using local elements because it helps form a friendly image and increase recognition.

In particular, the growth of F&B products with local images is remarkable.

Food products using local specialties are perceived as healthy products made with fresh ingredients, and there is a high demand to experience special products reflecting the story or image of the visited region.

The convenience store industry, which quickly reflects trends, is also releasing PB products using local specialties.

Emart24 launched ‘Seongju Chamoe Corn’ and ‘Busan Seed Hotteok Corn’ as ice cream PB products this summer, and CU partnered with Jeollabuk-do to introduce a ready meal series using Gochang bokbunja (Korean black raspberry).

Among these, the bokbunja lunchbox and hamburger ranked first in category sales after their release.

Here are three representative products that capture the distinct characteristics of regions and evoke the MZ generation’s desire for ‘ 인증샷 (certification shots).’

‘Yeosu Bamdada,’ a local brand product by Bohae Brewery released in 2019, was created to promote the tourist destination Yeosu. It is famous for its beautiful label that images Dolsan Bridge and twinkling starlight symbolizing Yeosu.

In July 2022, it was renewed and re-released in collaboration with pop artist Kian84, featuring four of his artworks on the front label of ‘Yeosu Bamdada.’

The alcohol content was lowered from 16.9% to 16.5%, and a new recipe developed by Bohae was applied to create a clean pairing with Yeosu local food, especially seafood.

On Instagram, there are over 5,000 posts tagged with ‘#YeosuBamdadaSoju,’ mostly showing travelers enjoying ‘Yeosu Bamdada’ soju at pojangmacha (street food tents) or restaurants.

‘Yeosu Bamdada’ has become a representative local soju loved by both Yeosu citizens and tourists, accounting for about 80% of the soju market share in Yeosu’s Romantic Pojangmacha Street.

According to Bohae Brewery, since the renewed release at the end of July, sales have more than doubled within a month, and within three months, sales exceeded 50% of last year’s annual sales.

The label full of Yeosu’s regional image and the unique design not seen on conventional soju bottles are judged to have received positive responses from consumers.

Recently, Kian84’s affection for ‘Yeosu Bamdada’ featuring his artwork and his active promotion both online and offline have also helped spread word of mouth.

Encouraged by consumer response, Bohae Brewery produced the second label ‘Portrait of Desire’ among the four labels created in collaboration with Kian84 in November.

Starbucks has been developing and selling ‘Jeju specialty drinks’ exclusively at Starbucks stores in the Jeju region since July 2016.

To date, a total of 45 Jeju specialty drinks have been released, and as of February 2022, cumulative sales exceeded 5.5 million cups, gaining popularity among travelers.

Jeju specialty drinks are made from local ingredients such as green tea, peanuts, and tangerines, and include products that capture Jeju’s image, such as ‘Kkamang Latte,’ which evokes the scenery of stone walls and Harubang statues.

These drinks and products, available only at Starbucks in Jeju, offer tourists visiting Jeju a more special travel experience.

Besides Jeju, Starbucks also introduces drinks that highlight Korean characteristics using local specialties such as ‘Mungyeong Omija Fizzio’ and ‘Gwangyang Hwangmaesil Fizzio,’ continuously striving to coexist with local farms.

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