Domestic pharmaceutical companies are speeding up efforts to expand their health functional food businesses. They are broadening portfolios once centered on prescription and over-the-counter drugs into the wellness space, increasing consumer touchpoints. Competition is also heating up among brands not only selling functional products but also proposing health management habits and lifestyles.
A prime example is Hanmi Science(008930). Hanmi Science recently unveiled a new health functional food brand, "NPLE." Instead of renewing an existing brand, it launched a new one to nurture an independent brand aimed at younger consumers who treat health as an everyday lifestyle.
A Hanmi Science official said, "If existing health functional food brands were function-centered, NPLE is a lifestyle brand that proposes healthy habits themselves," and added, "We planned a new brand in line with the trend among people in their 20s and 30s to consume health as part of their tastes and values."
The initial lineup has four products targeting gut health and antioxidants, nutrition and immunity, and blood circulation and eye health. "Denmark Probiotics" uses strains from global probiotics company Chr. Hansen, and "NMN-C Glow Care" contains NMN, vitamin C, and glutathione. "Premium Multivitamin Immune Shot" includes 23 vitamins and minerals, and "rTG Omega-3 Chewable 1000" uses rTG-type omega-3.
Product formats have also diversified to dual forms combining liquid and tablets, powder, and chewables. Hanmi Science plans to expand its lineup into inner beauty and sports nutrition to strengthen its wellness brand portfolio.
The backdrop to pharmaceutical companies rushing into the health functional food market is a shift in consumer trends. According to the Korea Health Functional Foods Association, the purchase experience rate for health functional foods in the past year was 83.6%, the highest level in the past five years. Although average spending per purchase fell, the number of buyers increased, indicating a trend of "value-for-money consumption."
Exports are also on the rise. According to the Ministery of Food and Drug Safety, exports of health functional foods increased from 226.4 billion won in 2020 to 380.2 billion won last year. In addition, the agency institutionalized customized health functional food retailing last year, allowing retailers that meet certain standards to subdivide and combine products for sale after expert consultation.
An industry official said, "Health functional foods are a field where pharmaceutical companies can leverage their research and development capabilities and health brand image," adding, "Because original design manufacturing (ODM) and original equipment manufacturing (OEM) are possible, initial investment burdens are relatively low, so pharmaceutical companies will continue to enter the market."