As the number of users of glucagon-like peptide-1 (GLP-1) obesity drugs such as Mounjaro and Wegovy grows, the food industry is worried about a trend of eating and drinking less. But there is a company quietly smiling in the background. Dongwon Systems(014820) is that place. The company, a subsidiary of the canned tuna brand 동원F&B, is the No. 1 player in Korea's B2B (business-to-business) food packaging sector.
According to the industry on the 10th, CJ CheilJedang(097950) changed some Bibigo frozen dumpling products supplied to the U.S. warehouse club Costco into small packages. It's a product that puts six small dumplings into each mini-pack for a total of 36, and local response is said to be positive. Costco is also shrinking the sizes of its flagship private-label items. Since Apr., Costco has sold bagels in single eight-piece packs. Previously, it sold two six-piece packs only. The price was raised from $5.99 for 12 to $4.99 for 8. Some consumers complain that the quantity went down while the price went up, but there is a reason Costco is cutting sizes like this: GLP-1 obesity drugs.
People on GLP-1 have slower gastric emptying, so they avoid large-size food and drinks and eat in small portions. As more people in the United States are prescribed GLP-1 obesity drugs, more are eating lightly, so small-size products sell well. According to Gallup in the United States, as of 2026, 11% of U.S. adults are prescribed GLP-1 obesity drugs for weight loss. In 2024, it was around 3%. In this way, GLP-1 users have become a segment that cannot be ignored in the U.S. food market. They eat less, but they have strong purchasing power. That's because GLP-1 obesity drugs, still in the early stage, are relatively expensive.
Accordingly, major K-food companies such as Nongshim(004370), OTOKI(007310), and Samyang Foods(003230), as well as global food makers such as Japan's Ajinomoto, are moving to small-portion and single-serve packaging.
◇ Eating less, but packaging expenses rise
From the perspective of food companies, the issue is packaging expenses. For example, there is a big difference when you consider the amount of packaging materials needed to make a 2-kilogram bulk plastic bag versus splitting the contents into six small trays and retort pouches. It's not simply about downsizing and making more; to keep small portions fresher, you need the right technology. While food manufacturers face higher costs for packaging materials, B2B corporations that supply packaging to food companies benefit.
Riding this trend, Dongwon Systems saw its operating profit in the first half of this year rise 15% to 44.4 billion won from 38.4 billion won a year earlier. The company is Korea's No. 1 in the food packaging (comprehensive packaging materials) market. It handles most packaging materials, including glass bottles, cans, plastic and paper packaging, as well as aluminum foil. Dongwon Systems posted 1.4335 trillion won in sales last year, with 488.5 billion won overseas, making exports 36% of the total.
Dongwon Systems cites high value-added packaging such as cans, retort pouches, and functional multi-packs, as well as recyclable eco-friendly flexible packaging (the peel-off film placed over food containers), as growth drivers for overseas sales. Through a Vietnamese packaging company acquired in 2019 (TTP), the company has also secured an export base for seafood and pet food packaging in Southeast Asia and North America.
It may seem that any packaging affiliate of a major food company would benefit, but that's not the case. Hitejinro(000080) Group's Samhwa Crown & Closure, Korea's No. 1 bottle-cap maker, saw profitability worsen in the first half. Samhwa Crown & Closure's first-half sales rose 3.4% year over year to 87.7 billion won, but operating profit fell 23.4%. Samhwa Crown & Closure relies on caps for alcoholic beverages. But the entire liquor market is in a slump, with beer shipments this year down 15.3% from a year earlier.
But the situation could change. Alcohol is not escaping the small-packaging trend either. According to the Wall Street Journal in the United States, the U.S. beer market is also shifting to smaller sizes. Local bottled beer typically comes in 340–450 milliliters, but lately sizes around half that—about 198–255 milliliters—have appeared. Craft beer brand Sierra Nevada Brewing Co. and Constellation, owner of Corona beer, are expanding sales of mini cans and bottled beer in 135 milliliters.