South Korea Food and Drink Report Q1 2010

Executive Summary ......................5
SWOT Analysis..............................6
South Korea Food Industry SWOT................ 6
South Korea Drink Industry SWOT............... 7
South Korea Mass Grocery Retail Industry SWOT............................. 8
Business Environment .................9
BMI’s Core Global Industry Views.................... 9
Table: BMI’s Core Views For The Food & Drink Industry ................ 9
Asia Pacific Business Environment Ratings..... 10
Table: Regional Food & Drink Business Environment Ratings – Q1 2010.............................. 12
South Korea Food & Drink Business Environment Rating ............... 13
Macroeconomic Outlook.................................. 14
Table: South Korea – Economic Activity .... 16
Food........17
Industry Forecast Scenario.............................. 17
Food Consumption...................................... 17
Table: Food Consumption Indicators - Historical Data & Forecasts...................................... 18
Canned Food ........ 18
Table: Value/Volume Sales of Selected Food Sub-Sectors – Historical Data & Forecasts...... 19
Confectionery........ 20
Trade .................... 20
Table: South Korea Food & Drink Trade Indicators – Historical Data & Forecasts (US$mn)..................................... 21
Industry Developments..................................... 22
Market Overview ....... 25
Agriculture............ 25
Organics ............... 25
Food-Processing......................................... 25
Drink .......27
Industry Forecast Scenario.............................. 27
Hot Drinks ............ 27
Alcoholic Drinks ......................................... 27
Soft Drinks............ 28
Table: South Korea Beverage Sub-Sectors – Value Sales – Historical Data & Forecasts....... 28
Industry Developments..................................... 29
Market Overview ....... 32
Alcoholic Drinks ......................................... 32
Soft Drinks............ 32
Mass Grocery Retail....................33
Industry Forecast Scenario.............................. 33
Table: South Korea MGR Indicators – Sales Value by Format – Historical Data & Forecasts .................................... 35
Table: Grocery Retail Sales by Format - Historical Data & Forecasts................................... 35
Industry Developments..................................... 36
Market Overview ....... 39
Table: Structure of South Korea's Mass Grocery Retail Market by Estimated Number of Outlets................................. 41
Table: Structure of South Korea's Mass Grocery Retail Market – Sales Value by Format (US$bn).............................. 41
Table: Structure of South Korea's Mass Grocery Retail Market – Sales Value by Format (KRWbn) ............................ 41
Table: Average Sales per Outlet by Format – 2008 .......................... 42
Competitive Landscape..............43
Key Players................ 43
Table: Key Players in South Korea's Food & Drink Sector .............. 43
Table: Key Players in South Korea's Mass Grocery Retail Sector..... 44
Company Analysis...... 46
Food ..................... 46
Maeil Dairy Industry .................................. 46
Nong Shim Co Ltd....................................... 47
Drink..................... 48
Hite Brewery......... 48
Oriental Brewery ........................................ 49
Mass Grocery Retail ................................... 50
Lotte Shopping...... 50
Samsung Tesco HomePlus .......................... 51
Appendix ......................................52
Country Snapshot: South Korea Demographic Data ............................. 52
Section 1: Population.................................. 52
Table: Demographic Indicators, 2005-2030..................................... 52
Table: Rural/Urban Breakdown, 2005-2030 .................................... 53
Section 2: Education and Healthcare ......... 53
Table: Education, 2002-2005 ..................... 53
Table: Vital Statistics, 2005-2030............... 53
Section 3: Labour Market and Spending Power................................ 54
Table: Employment Indicators, 2001-2006....................................... 54
Table: Consumer Expenditure, 2000-2012 (US$) ............................. 54
Table: Average Annual Wages, 2000-2012....................................... 55
BMI Food & Drink Methodology........................................56
Food & Drink Business Environment Ratings ....................................... 56
Ratings Methodology ....................................... 56
Ratings Overview....... 56
Ratings System...... 56
Indicators.............. 56
Limits Of Potential Returns......................... 57
Risks To Realisation Of Potential Returns ........................................ 58
Weighting.............. 59
Weighting.............. 59
BMI Food & Drink Industry Glossary ............. 60
Food & Drink ....... 60
Mass Grocery Retail ................................... 60
BMI Food & Drink Forecasting & Sourcing ......................................... 62
How We Generate Our Industry Forecasts ....................................... 62
Sourcing................ 63