South Korea edible oils market is projected to witness a CAGR of 5.12% during the forecast period 2024-2031, growing from USD 6.10 billion in 2023 to USD 9.10 billion in 2031.
The edible oils market in South Korea is witnessing a sharp increase in premium and specialty oils such as cold-pressed and non-GMO edible oils. As consumers are increasingly preferring premium oils which are superior in quality, unique taste and health benefits are being promoted by people in South Korea. The edible oils market is expanding due to wide culinary applications and usage of edible oil for different purposes such as cooking, frying, sauteing, salad dressing, etc. Classic Korean dishes such as deep-fried chicken, tempura, and stir-fried varieties, require huge volumes of oil.
The consumption of edible oils in South Korea is dependent on the imports made by the country. As South Korea reportedly has a lesser arable land, which is 30% of the total cultivable land area, it restricts the production of oilseed crops in the country.
While South Korea imports a significant portion of edible oils, the manufacturers are emphasizing on the expansion of local production, particularly of specialty oils, such as perilla, sesame, and soyabean oil. Based on production, soya bean has been the largest crop being produced in South Korea with the total production of 129.9 thousand tons in 2022, driving the growth of soyabean oil in the country. It is because the consumers perceive soyabean oil as a healthy fat, since it support heart, bone, and skin health. Also, as it has a high smoking point which makes it suitable for different applications such as frying and sauteing.
Versatility of Edible Oils to Drive the Market Growth
The versatility of edible oils and wider culinary applications drive the growth for edible oils market in South Korea. Various edible oils available in South Korea, such as rapeseed oil and rice bran oil, have a high cooking temperature. Therefore, they are ideal for deep-frying and stir-frying without affecting the flavor of the food.
Olive oil and coconut oil are widely used for baking. These oils make pastries moist and texture rich. Their flavors can be used to create sweet or savory concoctions. Whereas olive oil is used as a salad dressing and marinades due to its pungent and strong flavor to lift ordinary ingredients.
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Apart from this, various players are using edible oils in coffee and other food items for the enhancement of flavor and texture. For instance, in July 2024, Starbucks Korea announced that it would sell a limited number of its popular beverage, Oleato Golden Foam Ice Shaken Espresso with Hazelnut that contains olive oil to offer a velvety texture in the beverage.
Palm Oil to Exhibit the Fastest Growth in the Region
Palm oil finds heavy usage in restaurants and fast-food industries due to its use in deep-frying, common to many popular Korean dishes and snacks. Apart from unique street food that requires considerable quantities of cooking oil, there exist a variety of fried dishes, including fried chicken and tempura, in Korean cuisine which incorporates the usage of palm oil.
Palm oil is one of the cheapest edible oils in market, hence quite favorable to be used by households and industries. At a low price compared with other oils such as olive or avocado, it keeps down the cost of food production. With a high smoke point and neutral flavor, palm oil is applicable for wider applications such as frying, baking, and sauteing. Its versatility makes it standard in most home kitchens and food service industries.
South Korea imports large quantities of palm oil from major producing countries, such as Indonesia and Malaysia, ensuring continuous stable supply. The reliability of supply chains enhances the extensive use accordingly. Trade agreements and economic partnerships with the palm oil-producing countries make imports easier and relatively inexpensive, increasing consumption. According to Agriculture and Agri-Food Canada (AAFC), South Korea’s imports have been increasing for the oils globally, amounting to USD 1.8 billion. The largest oil import in the country was palm oil in 2023, valued at USD 611 million.
Edible Oils in Commercial Sector to Gain Traction in the Market
Commercial kitchens cook enormous amounts of food every day for the large number of customers that go to restaurants, fast-fthe ood chains, and catering services. Since the quantity of food cooked on a daily basis is huge, edible oil consumption for commercial use is much more significant than in a home kitchen.
The commercial sector is compelled to change frying oil frequently to preserve food quality and follow health guidelines. This increased frequency adds to the total oil consumption. Moreover, such kitchens offer a tremendous variety of dishes that undergo many cooking processes, most of which include frying or sauteing. Moreover, deep fryers and high-powered stoves are typical in many commercial kitchens and designed for heavy oil volumes.
Commercial kitchens strive to achieve the maximum taste and texture possible, often using generous quantities to deliver a standard taste and texture. Customer satisfaction and repeat business are built on the consistency of flavor and texture. Fast food popularity, rise in consumers’ preference for ready-to-eat foods due to their busier lifestyle, and the trend of dining-out in South Korea has driven the demand for meal preparation using edible oils in commercial establishments.
As found by the Agriculture and Agri-Food Canada (AAFC) in July 2024, in South Korea, around 80% to 90% of cooking oil for food is sold through B2B channel, in mainly 18-liter cans. The remaining 20% of the amount is sold for direct consumer use.
Future Market Scenario (2024 – 2031F)
The edible oils market is expected to witness exponential growth in South Korea due to its rising consumption of edible oils in street food, restaurants, and home cooked meals. As per the estimates of Agriculture and Agri-Food Canada, South Korea has been the 14th largest global market for cooking oils and experiences a rise in the growth rate as the imports increased from USD 1 billion in 2019 to USD 1.8 billion in 2023. To cater to the rising demand of the consumers, the South Korea edible oils market will continue to grow in the forecast period.
Report Scope
“South Korea Edible Oils Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of South Korea edible oils market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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