Huons Accelerates 'Health Functional Foods' Business Marking Future Strategy

Exterior view of Huons Group's new office building in Pangyo.

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[Asia Economy Reporter Lee Gwan-joo] Huons is continuing its aggressive moves day by day in the health functional food (HFF) business, which it has chosen as a future strategic business, and is repeatedly showing growth. In addition to expanding the lineup of flagship brands such as the premium high-dose vitamin 'MeritC' and the menopause probiotic 'Menolacto,' it has also unveiled new product launches targeting the 2030 generation and a subsidiary merger card to target the OEM·ODM market.

Menolacto, launched in 2020, has achieved cumulative sales of 54.4 billion KRW in just 1 year and 9 months since its launch, growing into a representative product in the menopause HFF market, and is expected to show even more distinct growth this year. Huons is not stopping there and is preparing to launch a prostate health functional food targeting senior men.

Preparations to strengthen its presence in the OEM·ODM market have also been completed. In January this year, Huons Foodience, a merged corporation of Huons Nature, a ginseng and red ginseng specialist subsidiary, and Huons Natural, which stood out in the inner beauty sector, was launched. This integrated and redeployed manufacturing facilities and personnel that had been dispersed between the two companies in the HFF business.

Huons has so far stood out in health functional foods exclusively for hospitals and clinics. The representative product is MeritC (high-dose vitamin). Without advertising, it has been steadily loved as doctors recommend it and consumers spread word of mouth. Developed in 2012, MeritC made a name for itself as a premium high-dose vitamin exclusively for hospitals and clinics, allowing intake of 2000mg or 3000mg of vitamin C powder per packet. Following demands to expand sales channels, an online-exclusive product was introduced, and consumer demand for multivitamins led to the launch of combination products (MeritC&D, MeritC&B), growing into a comprehensive vitamin brand.

Huons Merit C lineup (above) and Salsa Rajin.

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The product that made the current Huons name known, 'Salsa Rajin,' was originally an abdominal obesity treatment. Huons decided to leverage Salsa Rajin's brand power to target the growing diet supplement market and converted it into a health functional food brand in August last year. Since the brand conversion, various diet products fitting trends and consumer lifestyles, such as Salsa Rajin Weight Loss Conversion and Salsa Rajin Lactoferrin Diet, have been introduced.

The upward trend of 'Eluvi Menolacto Probiotics' (hereafter Menolacto), which has grown into Huons' representative product in the menopause probiotic category, is expected to continue. The menopause market targeted by Menolacto is expected to see long-term growth, supported by aging and the self-medication trend. Since its launch in April 2020, Menolacto achieved cumulative sales of approximately 54.4 billion KRW by December 2021. Considering that the new lineup, the powder type 'Menolacto Pro,' was only launched in April last year, one year after the initial launch, this is regarded as an impressive achievement for a single product.

Factors contributing to Menolacto's popularity include being the first probiotic in Korea confirmed to have functionality for female menopause and clinical trials confirming improvement effects on symptoms causing daily discomfort beyond the representative menopause symptom of hot flashes. Huons plans to focus on strongly imprinting the brand in consumers' minds and expanding awareness as Menolacto has grown into a 'mega brand.' A Huons official said, “Last year, we focused on building empathy with consumers, and this year, we plan to emphasize that Eluvi Menolacto Probiotics is the undisputed number one menopause probiotic brand.”

Huons Menolacto Probiotics.

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Riding on Menolacto's success, Huons plans to enter the male health functional food market. In June last year, Huons obtained individual recognition from the Ministry of Food and Drug Safety for the functionality of the plant-based material 'Sagunjachul Powder' in maintaining men's prostate health and is focusing on product development. Since benign prostatic hyperplasia is a chronic disease among men with high demand, but many patients are reluctant to seek hospital treatment due to the nature of urological diseases, there is growing interest in preventive medicine or complementary therapies such as health functional foods due to concerns about missing treatment timing or side effects from long-term medication. Huons plans to target this market and challenge the domestic male prostate health functional food market, represented by 'Saw Palmetto.'

At the start of the new year, Huons carried out a subsidiary merger. Huons Nature, specializing in ginseng and red ginseng, absorbed Huons Natural, which showcased trendy health functional foods centered on the inner beauty business. This decision is interpreted as Huons' strong will to drive the HFF business.

Huons Foodience Inner Set Lineup.

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Regarding the background of launching the merged corporation Huons Foodience, the Huons Group explained, "This is a measure to consolidate overlapping and dispersed capabilities between the two companies to further enhance expertise and competitiveness in the health functional food field and to complete an integrated HFF business value chain from raw material R&D to production, finished product manufacturing, marketing, and distribution." They added, "Huons Foodience will grow into a core affiliate leading the health functional food business within the group."

Huons Foodience has a value chain capable of research and development to production of functional raw materials, including ginseng and red ginseng, which hold an unshakable number one market share in the domestic health functional food market, as well as probiotics and vitamins, which have rapidly risen to second place. In particular, it possesses major facilities related to HFF production and manufacturing such as extraction, concentration, steaming (jeungsuk), freeze-drying, fermentation, fluidized bed granulation, sticks, pouches, jelly sticks, solid forms, pills, tablets, tablets, tablets, capsules, and tablets, enabling differentiated services in the OEM·ODM market.

Huons Foodience emphasized, "We will further enhance our consolidated capabilities to lead the health functional food market with the trends of 'Healthy Pleasure,' which values health, and 'Self-medication,' which aims to prevent diseases in advance."

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