"Rising Health Functional Food Exports: Spotlight on Neocrema, Novarex, and Suheung"

As exports of health functional foods increase, companies such as Neocrema, Novarex, and Suheung are garnering attention.

On September 28, independent research firm Growth Research released an industry report analyzing the growth potential of manufacturers driven by expanding exports of health functional foods and diversification of distribution channels and formulations.

According to the report, Korea’s health functional food exports totaled 452.4 billion won last year, marking a 19.0% increase compared to the previous year. Domestically, sales channels have been expanding to outlets such as Daiso and convenience stores, while product types are diversifying to include liquid and jelly formulations. This diversification of channels and product forms is leading to additional orders and new customer acquisition, making manufacturing development production (ODM) capabilities and production capacity—spanning from raw material selection to formulation and product design—increasingly important.

Individual company performances have also improved. Neocrema turned to profitability quarter-on-quarter, posting a separate operating profit of 620 million won in the second quarter of this year as North American and Asian customers placed more repeat orders for its functional ingredient DNF-10. Novarex participated in planning multipack products for global brand GNC, and in the first half of the year, its sales and operating profit rose by 17.3% and 29.2%, respectively. Suheung also saw its first-half sales and operating profit grow by 11.8% and 38.0%, respectively, with 78.0% of its hard capsule sales coming from exports.

Hyonghee Han, a researcher at Growth Research, commented, “With stagnating domestic demand, the expansion of exports has emerged as a new driver of growth for the health functional food market. In Korea, the diversification of sales channels and formulations is broadening business opportunities for manufacturers. The competitiveness of companies will increasingly depend on their ability to leverage raw material development, product planning, and enhanced production capabilities to expand their overseas customer base, thereby generating repeat orders and improving profitability.”

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