South Korea Avocado Market Overview, 2029

In South Korea, where K-pop beats reverberate and high-speed trains whizz across the scenery, this country's market landscape is changing at a speed faster than a heartbeat through a cultural mix of heritage with modern advancement. Due to a high demand for health foods with essential nutrients, the South Korean avocado market has grown tremendously in the recent past. Although this is a small market compared to other fruits and vegetables, avocados have established a significant foothold, which represents changing eating culture and tastes toward superfoods. Taking a central place in the current market is advancing technology related to avocado distribution and customers in South Korea. Noticeably, so many changes to the way avocados are bought by consumers have been made with ease by both Coupang and Gmarket. Avocados are part of a South Korean consumer's increasingly diversified diet as interest in health and wellness continues to grow. It has gained popularity not only in respect to the nutritional benefits one gets from it but also its versatility in dishes, running from traditional Korean dishes to Western-style cuisine. Younger generations, in particular, are leading this trend forward with the globalization of food movements and the increase of social media platforms that showcase new trends in food. Their popularity can also be gauged by the fact that they featured everywhere in cafes and restaurants across major cities, from salads to desserts. Major ports, for example, Busan and Incheon, act as entry points for the imported avocados and then distribute to the whole country through well-established cold chains. This is very instrumental in ensuring the quality and freshness of avocados, considering their miles from the producer countries. Avocados reach consumers through large supermarket chains, organic stores, and increasingly through online platforms, whereby e-commerce has improved access to fresh produce at convenience. On the food safety side, the KFDA makes sure that all avocados imported into the country meet high standards of food safety before they go to the consumer market. Other trade agreements, like KORUS FTA, have also made some difference in facilitating imports by slashing the tariffs on avocados from the United States, hence making them more available for consumption in South Korea. Avocado market dynamics in South Korea are influenced by seasonal availability, price fluctuations, and consumer trends. According to the research report "South Korea Avocado Market Overview, 2029," published by Bonafide Research, the South Korea Avocado Market is anticipated to add to more than USD 100 Million by 2024–29.The demand is resilient, buoyed by avocados' reputation as a flexible and nutritious food. In Western cuisine and brunch culture has also been on the rise, whereby avocados formed an essential ingredient, pushing up consumption in the urban centers. Within the South Korean avocado market, there exist wide growth opportunities, especially in the premium and organic segments. With increased awareness about environmental sustainability, more consumers want to buy organically produced and sustainably sourced avocados. The other critical trend is plant-based diets and veganism, wherein avocado-based products will persist as spreads, oils, and snacks. Several major trends are likely to shape the future of the South Korean avocado market. As plant-based eating continues to rise, so will avocado consumption since this fruit is one of the core foods in many vegetarian and vegan diets. An increasing interest in fitting avocados into traditional Korean dishes is representative of a more general trend of global and local culinary mixing. Other ways in which improvements in freshness and appeal could be realized include advances in packaging and storage technology, which can ensure the quality of avocados during transportation and increase shelf life in-store. Events such as Asia Fruit Logistica, one of the largest trade shows in the region, bring together South Korean importers and distributors to discuss market trends, innovations, and opportunities with international suppliers. In South Korea, large retail chains such as Lotte Mart, Emart, and Homeplus are ruling the competitive landscape of the avocado market. These are large-scale distributors of avocados, and each of them places the avocado at the head of their fresh produce section. Among others, Olive Young is an organic and health-oriented company, meaning it provides high-quality or organic avocados to a fast-growing niche of consumers. As a result, the competition for "healthy" customers has intensified, which only boosts variety and promotional activities from retailers.

On the basis of type, the avocado market in South Korea is also getting extension with several demands for its various varieties, which have certain consumer preference and culinary usages. Hass, Reed, Fuerte, and others form major types of avocados available in the market. Hass is the major avocado cultivar available in the South Korean market. It has a creamy texture and rich flavor, together with extended shelf life. The reason this cultivar is so preferred by customers is because of its wide usage in raw and cooked dishes. Its dark, pebbly skin also ripens to indicate the level of its ripeness so that consumers can easily choose the best fruits. The Hass avocado, with its better taste and longer shelf life, compared to other varieties, is not affected by a higher price; it continues to be ahead of other avocado types in demand, mostly being the most popular variety at retail and in foodservice. Known for its size, round shape, and smooth green skin, Reed avocados are gaining popularity in South Korea, especially among consumers who prefer a more mild flavor profile. One key difference from Hass is that the skin of a Reed avocado is much thicker; this gives it more resistance to storage and transport, making it preferred for imports. The creamy texture makes Reed avocados perfect for salads, smoothies, and spreading. Not as well-known as Hass, the Reed variety has slowly been building its market, particularly with health-conscious individuals who welcome its lower oil content. Fuerte avocado oval, pear-like in shape, has smooth green skin that does not color when ripe. It has a rich, creamy flavor, much like the Hass, so it's perfect for more traditional avocado lovers. Nevertheless, it does not have the same popularity in the commercial circle, as it has a shorter shelf life than Hass and Reed. Fuerte avocados have a strong following of consumers who are looking for a more traditional avocado taste, and niche markets who pay for organic and non-GMO. Others, like Bacon, Zutano, and Pinkerton, are relatively rare but still find their way to squeeze into the market. Seasonal types are rather preferred by consumers due to a change of taste or for specific culinary purposes. For example, Bacon avocados are mildly flavored, and so it is normally used in recipes where the flavor of the avocado likely overshadow the other ingredients. Zutano avocados are water-rich and preferred in dishes where lightness in texture is desired. Fast-growing avocado demand in South Korea is supplemented by its booming market for various end-user industries, indicating that the popularity of the fruit is increasing along with new potential uses. The growing trend of avocados in traditional and new food uses is well seen across the food and beverage industry. The key players in the food industry, like CJ CheilJedang and Pulmuone, offer avocado-based products, including guacamole and avocado spreads, while some have even launched avocado beverages in response to health-oriented consumers seeking healthy food. Avocados have become adopted onto menus everywhere from restaurants and cafes across most of South Korea, particularly in the trendiest areas like Gangnam in Seoul, with avocado toast, avocado smoothie bowls, and creative fusion dishes that bring both Korean and Western culinary traditions together. Such leading retail chains as E-Mart, Lotte Mart, and Homeplus have increased the number of display spaces for avocados, both fresh and processed avocado products. These retailers have also used in-store education-related activities, which help familiarize Korean consumers with techniques for selecting, ripening, and preparing avocados, driving adoption in households. On the other hand, online grocery platforms such as Coupang and Market Kurly have increased accessibility to avocados among Korean consumers by providing them with a wide array of avocado products for house-to-house delivery. This has been adopted by the South Korean beauty industry, very famous for its experimental K-beauty products. Several big brands, such as Innisfree and The Face Shop, have launched avocado-based skin care lines with loud applause. Products that include the richness of the fruit in face masks and hair treatments are favored by those reaching out to nature and botanical beauty products. Outside of these major industries, avocados have found a variety of other niche uses in South Korea. For instance, the pet food industry began utilizing avocado oil in dog and cat premium food to help keep dogs and cats healthy. The avocado market has done so well in South Korea over the years, avocados have fast-tracked to become trendy both in the market for fresh fruits and in that for processed fruits. Fresh avocado demand has surged in South Korea, which might be due to an enhanced consciousness of health and vigor, plus the embracing of global food trends in this population. From popular trendy Hass through to others less well known, the bigger retail chains in South Korea, such as E-Mart and Lotte Mart, have dramatically increased shelf space to display a range of avocado cultivars. And it is this ease of access that transformed more Korean households into avocado consumers and allowed for more inventive avocado recipes that cater to the tastes of the locals. This has been coupled with increasing orders for avocado toast and other menu items that are made of, with, or topped with the fruit, raising the demand for fresh avocados in the country. In addition to that, apart from the fresh sector, positive growth has also been noticed within the processed avocado market share of South Korea. The processing companies in the country have maximized the versatility of the avocados and diversified into several items, that is, guacamole, avocado spreads, and dips and beverages containing avocado ingredients. These value-added products have found more favor among the health-conscious Korean clienteles looking for convenient and healthy options to fit within their busy schedules. The increasing demand for fresh and processed avocado products has driven importation levels higher. It now represents one of the most important destinations of exports of avocados, with suppliers originating from countries like Chile, Mexico, and Peru satisfying this superfruit demand. An online-offline avocado distribution network spreads throughout South Korea, serving all kinds of consumer needs. South Korea's online market places have grown in popularity, driven by user-friendly interfaces and product variety. Major e-commerce players such as Coupang, Gmarket, and 11st offer a wide range of avocado varieties, including the popular Hass. Many of these platforms source not only locally but also from international supply chains for year-round supply. For example, Coupang's "Rocket Delivery" is same-day or next-day delivery; here, consumers can easily buy fresh avocados together with other groceries in one click. Also, special online retailers or farm-to-table platforms allow consumers to purchase avocados directly from producers, with a focus on freshness and traceability. Online sales are also made through social commerce platforms like Naver Shopping and shopping channels on KakaoTalk, whereby avocados have gained popularity with the help of influencers and bloggers by promoting the fruit as a health-beneficial, multifunctional ingredient. The other principal component of the avocado market in South Korea is offline distribution. Other large-scale sales channels include large-supermarkets and hypermarkets, such as E-Mart, Lotte Mart, and Homeplus, all offering a variety of avocados at very reasonable prices. Most of these retailers are importing avocados directly from countries like Mexico, Chile, and Peru to meet this huge demand. Traditional markets and local greengrocers contribute to this offline distribution significantly by catering to all those customers who demand fresh and locally procured produce. For example, the most famous Gwangjang Market in Seoul offers a wide variety of avocados among many other fresh fruits and vegetables. Convenience stores such as CU, GS25, and 7-Eleven started stocking avocados to meet the consumers' needs looking for fast convenience in buying this fruit. Another key offline distribution channel is food service. This trending dish of avocados boosted the demand in the food service sector, comprising cafes, restaurants, and bakeries. For example, avocado toast and avocado smoothies are trendy, so in this case, one would source avocados from wholesale markets and specialty suppliers. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029

Aspects covered in this report • Avocado market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type • Hass • Reed • Fuerte • Others By End User • Food & Beverages • Retail • Cosmetics & Personal Care • Others By Form • Fresh • Processed By Distribution • Online • Offline The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Avocado industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry. Keywords: Avocado, Hass, Reed, Fuerte, Food & Beverages, Retail, Cosmetics & Personal Care, Fresh, Processed, Online, Offline