CU recently announced on the 11th that it will expand its health food specialty stores, where sales have increased, and will push for the introduction of health functional foods, marking an industry first.
CU's health food category sales growth rate compared to the previous year was 5.3% in 2021, 27.1% in 2022, and 18.6% in 2023, showing a consistent increase. In particular, sales of health foods surged by 137% over the past year as several dual-form products gained popularity.
In line with this trend, CU proactively selected 3,000 stores nationwide as health food display enhancement points in October of last year and introduced over 40 types of products and specialized display stands.
Last month, as the daily sales of health foods in these stores were found to be three times higher than those of regular stores, CU set a goal to expand its health food specialty stores to 5,000 locations in the first half of this year.
The Myeongdong station store, which CU opened as a K-food specialty convenience store at the end of last year, has established a health food specialty zone and sells over 30 related products, including health functional foods. In February, the average daily sales of health functional foods at this store increased a remarkable fourfold compared to the initial introduction.
Amid this flow, CU plans to expand health functional food testing mainly in company-owned stores during the first half of the year and to actively discuss differentiated product launches with major pharmaceutical companies. After finalizing the product lineup, it intends to expand sales to nationwide franchise stores in the first half of next year.
Before entering the health functional food market in earnest, CU will begin sales of four types of health foods from Dong-A Pharmaceutical, 'Vitagran' (Shine Muscat, Grape, LEMON tablet, LEMON juice), and one type of 'Ailo Kamut Enzyme' this month, exclusively in the industry.
Currently, most health foods sold in convenience stores are classified as 'other processed products' rather than the health functional foods defined by law. For example, in the case of vitamin products, the vitamin content specified as health functional foods is reduced, and other lacking ingredients are added.
Accordingly, franchise-operated stores must obtain permission from each store owner to sell health functional foods. Previously, CU informed franchise owners nationwide about health food sales trends and the licensing process for selling health functional foods through the 2025 spring/summer product convention.
There is also significant opposition from the pharmacy industry. This is due to some pushback arguing that health functional foods sold through other channels negatively impact pharmacy sales. Concerns about the potential side effects of indiscriminate purchasing have also been raised.
Since the 24th of last month, Daiso has begun selling over 30 types of health functional foods from Daewoong Pharmaceutical, Il Yang Food, and Chong Kun Dang across more than 200 stores nationwide. However, following pushback from pharmacists, some pharmaceutical companies have withdrawn from launching at Daiso. The Fair Trade Commission is currently investigating whether there have been any legal violations by the Korea Pharmaceutical Association during this process.