Health supplements found at convenience stores. (Image courtesy of Yonhap)
SEOUL, July 15 (Korea Bizwire) — Despite a sluggish economy, South Korea’s health supplement industry posted double-digit growth in 2023, becoming the only segment of the country’s biohealth sector to do so, according to new government data.
A report released July 13 by the Korea Health Industry Development Institute (KHIDI) showed that the health supplement segment grew by 10.3% in 2023, with total sales reaching 22.51 trillion won (approx. $16.4 billion), up from 20.4 trillion won in 2022. It marked the fastest growth among all biohealth subsectors.
Overall, the country’s biohealth industry — encompassing pharmaceuticals, medical devices, cosmetics, and health supplements — posted 155.88 trillion won in sales in 2023. While the industry grew 6.9% in 2022, its growth slowed to just 0.8% last year.
By sector, pharmaceuticals remained the largest component, generating 53.08 trillion won in sales in 2023, a 6.1% increase year-on-year. Cosmetics rebounded with a 7.9% rise to 42.33 trillion won after a decline in 2022. However, the medical devices sector recorded a sharp 15.7% drop, falling to 37.96 trillion won.
(Image courtesy of Korea Health Industry Development Institute)
Within the booming health supplement market, products classified under basic nutritional functions dominated, accounting for 12.02 trillion won, or 53.4% of total segment revenue. Functional foods targeting physiological benefits contributed 6.29 trillion won (27.9%), while disease risk-reduction supplements added 4.21 trillion won (18.7%).
Despite strong sales, the health supplement industry saw a surprising contraction in its workforce. Employee numbers fell 18.9% from 55,506 in 2022 to 45,031 in 2023 — the only subsector to see a decline in headcount.
Likewise, research and development investment in the segment shrank for the third consecutive year, from 356.7 billion won in 2021 to just 309.4 billion won in 2023.
Analysts suggest the divergence between sales growth and declining investment may reflect intensified market competition, cost-cutting strategies, or a shift in focus toward marketing over innovation.
Ashley Song (ashley@koreabizwire.com)
