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Tiffany Jubilee
WESTERN PACIFIC UNIVERSITY IALIBU
CASE STUDY: CANADIAN-
KOREAN HONEY MARKET
TASK 2 – INDIVIDUAL ASSIGNMENT
UNIT: INTERNATIONAL MARKETING IBM212
UNIT COORDINATOR: DR. PRIYA
IBM212-INTERNATIONAL MARKETING
TASK 2- INDIVIDUAL ASSIGNMENT
CASE STUDY
QUESTIONS
1. What aspects of the Korean honey market are favorable for Korean food (Canadian honey)?
The Korean honey market presents several favorable aspects for Korean Food, the Canadian company
looking to export honey to Korea. These factors include:
1. Strong demand: The Korean market has a strong demand for honey, with increasing demand due
to consumers becoming more health-conscious and expenditures on food and beverages as a
percentage of total household expenditure decreasing while medical and health-related expenditures
have increased.
2. Affordability: Honey is becoming more affordable as the average monthly earning power of workers
is increasing while the per unit price of honey is decreasing.
3. Unmet domestic supply: The demand for honey in Korea is not being met by domestic production,
which has been declining due to climate change and insect damage. In 2010, total domestic honey
production was only 18.5 million kilograms.
4. Quality and taste: Canadian honey is perceived to be of higher quality and better taste due to the
variety of flowers used in Canada, which produce better-tasting honey.
5. Growing popularity: Honey is a popular gift item sent by Korean immigrants to their relatives back
home, and many Korean visitors to Canada buy honey to take back to Korea.
6.Regulatory changes: The South Korean government has been implementing free trade agreements
with trading partners, including the United States, Canada, New Zealand, and Vietnam, which may
lead to increased imports of honey from these countries.
7. Consumer preference: Korean consumers value health and convenience, and many view honeys as
a healthy, premium sweetener.
8. Market growth: The South Korea Honey Market is expected to grow at a CAGR of 13.8% from 2020
to 2026.
These factors suggest that there is a significant opportunity for Korean Food to export Canadian honey
to Korea, given the strong demand, affordability, and unmet supply. However, it is essential to
consider the regulatory changes and potential competition from domestic honey producers and other
importing countries.
2. What aspects of the Korean honey market are unfavorable for Korean Food?
The Korean honey market has some unfavorable aspects for Korean Food, including:
1. Decline in domestic production: Domestic honey production in South Korea has declined
sharply in recent years due to climate change and insect damage, resulting in a higher
dependency on imported honey.
2. Increased imports: Imports of natural honey are expected to increase as duties fall under Free
Trade Agreements established with trading partners, including the United States, Canada,
New Zealand, and Vietnam.
3. Regulatory requirements: All newly imported products undergo laboratory tests, and
subsequent shipments of the same product that passed the first lab test undergo document
reviews, which can be a cumbersome process for importers.
4. Competition from other countries: The United States is the leading supplier of imported honey
to Korea, accounting for 51% of imports in 2019, which can make it challenging for Korean
Food to compete in the market.
5. Price competition: The wholesale price of honey in South Korea can be affected by changes in
the market, which can impact the pricing strategy of Korean Food.
6. Currency devaluation: Currency devaluation can make Indian honey more price competitive,
which can affect the market share of Korean Food in the South Korean honey market.
7. Limited market share in global export and import: South Korea ranks 0th in global export and
import of honey, accounting for 0% share in global export and 0% share in global import, which
indicates a highly competitive market.
8. Limited market share in global production: South Korea ranks 13th in global honey production,
accounting for 1.80% share in global production, which indicates a relatively small production
base compared to other countries.
9. High Tariff: There was 25% tariff on honey imports.
These unfavorable aspects suggest that Korean Food may face challenges in the Korean honey
market due to declining domestic production, increased imports, regulatory requirements,
competition from other countries, price competition, currency devaluation, and limited market
share in global export, import, and production.
SUMMARY
The Korean honey market presents both opportunities and challenges for Canadian honey exporters.
On the one hand, domestic honey production in South Korea has declined sharply in recent years due
to climate change and insect damage, creating a potential gap in supply that Canadian exporters could
fill (Foreign Agricultural Service, 2020). Additionally, Korean consumers view honey as a healthy and
premium sweetener, with increasing consumer traction towards healthy spreads, and the organic
segment is projected to register the fastest CAGR of 5.9% from 2023 to 2030 (Government of Canada,
n.d).
On the other hand, there are several unfavorable aspects of the Korean honey market for Korean
Food, including import restrictions and high tariffs, low consumer trust, strong domestic competition,
limited distribution channels, and consumer behavior (FAO Organisation, n.d). The Korean
government relaxed import restrictions in 2011, allowing for the import of honey for hotel use, but
this change could be both favorable and unfavorable, depending on the company's strategy (Foreign
Agricultural Service, 2020).
To succeed in the Korean honey market, Canadian exporters should focus on marketing strategies that
emphasize the quality and authenticity of their honey, including clear and informative labelling,
indicating the exact geographical origin, and highlighting the health benefits of their honey.
Additionally, Canadian exporters should consider partnering with local distributors and retailers to
gain access to established distribution channels and consumer networks (FAO Organisation, n.d).
In summary, the Korean honey market presents both opportunities and challenges for Canadian honey
exporters. While there are potential gaps in supply due to declining domestic production, there are
also significant regulatory and competitive challenges to overcome. By focusing on quality,
authenticity, and effective marketing strategies, Canadian exporters can successfully enter the Korean
honey market and capitalize on the growing demand for healthy and premium sweeteners.
References
FAO Organisation. (n.d). Honey Marketing and International Trade. Retrieved from FAO ORG:
https://www.fao.org/3/i0842e/i0842e16.pdf
Foreign Agricultural Service. (2020, October 22). South Korea: Korea Honey Market Brief. Retrieved
from Foreign Agricultural Service: https://fas.usda.gov/data/south-korea-korea-honey-
market-brief
Government of Canada. (n.d). Customized Report Service-Sweet Spreads and Honey in South Korea.
Retrieved from Agriculture Canada: https://agriculture.canada.ca/en/international-
trade/market-intelligence/reports/customized-report-service-sweet-spreads-and-honey-
south-korea

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Case Study- Canadian Korean Honey Market_.pdf

  • 1. Tiffany Jubilee WESTERN PACIFIC UNIVERSITY IALIBU CASE STUDY: CANADIAN- KOREAN HONEY MARKET TASK 2 – INDIVIDUAL ASSIGNMENT UNIT: INTERNATIONAL MARKETING IBM212 UNIT COORDINATOR: DR. PRIYA
  • 2. IBM212-INTERNATIONAL MARKETING TASK 2- INDIVIDUAL ASSIGNMENT CASE STUDY QUESTIONS 1. What aspects of the Korean honey market are favorable for Korean food (Canadian honey)? The Korean honey market presents several favorable aspects for Korean Food, the Canadian company looking to export honey to Korea. These factors include: 1. Strong demand: The Korean market has a strong demand for honey, with increasing demand due to consumers becoming more health-conscious and expenditures on food and beverages as a percentage of total household expenditure decreasing while medical and health-related expenditures have increased. 2. Affordability: Honey is becoming more affordable as the average monthly earning power of workers is increasing while the per unit price of honey is decreasing. 3. Unmet domestic supply: The demand for honey in Korea is not being met by domestic production, which has been declining due to climate change and insect damage. In 2010, total domestic honey production was only 18.5 million kilograms. 4. Quality and taste: Canadian honey is perceived to be of higher quality and better taste due to the variety of flowers used in Canada, which produce better-tasting honey. 5. Growing popularity: Honey is a popular gift item sent by Korean immigrants to their relatives back home, and many Korean visitors to Canada buy honey to take back to Korea. 6.Regulatory changes: The South Korean government has been implementing free trade agreements with trading partners, including the United States, Canada, New Zealand, and Vietnam, which may lead to increased imports of honey from these countries. 7. Consumer preference: Korean consumers value health and convenience, and many view honeys as a healthy, premium sweetener. 8. Market growth: The South Korea Honey Market is expected to grow at a CAGR of 13.8% from 2020 to 2026.
  • 3. These factors suggest that there is a significant opportunity for Korean Food to export Canadian honey to Korea, given the strong demand, affordability, and unmet supply. However, it is essential to consider the regulatory changes and potential competition from domestic honey producers and other importing countries. 2. What aspects of the Korean honey market are unfavorable for Korean Food? The Korean honey market has some unfavorable aspects for Korean Food, including: 1. Decline in domestic production: Domestic honey production in South Korea has declined sharply in recent years due to climate change and insect damage, resulting in a higher dependency on imported honey. 2. Increased imports: Imports of natural honey are expected to increase as duties fall under Free Trade Agreements established with trading partners, including the United States, Canada, New Zealand, and Vietnam. 3. Regulatory requirements: All newly imported products undergo laboratory tests, and subsequent shipments of the same product that passed the first lab test undergo document reviews, which can be a cumbersome process for importers. 4. Competition from other countries: The United States is the leading supplier of imported honey to Korea, accounting for 51% of imports in 2019, which can make it challenging for Korean Food to compete in the market. 5. Price competition: The wholesale price of honey in South Korea can be affected by changes in the market, which can impact the pricing strategy of Korean Food. 6. Currency devaluation: Currency devaluation can make Indian honey more price competitive, which can affect the market share of Korean Food in the South Korean honey market. 7. Limited market share in global export and import: South Korea ranks 0th in global export and import of honey, accounting for 0% share in global export and 0% share in global import, which indicates a highly competitive market. 8. Limited market share in global production: South Korea ranks 13th in global honey production, accounting for 1.80% share in global production, which indicates a relatively small production base compared to other countries. 9. High Tariff: There was 25% tariff on honey imports. These unfavorable aspects suggest that Korean Food may face challenges in the Korean honey market due to declining domestic production, increased imports, regulatory requirements, competition from other countries, price competition, currency devaluation, and limited market share in global export, import, and production.
  • 4. SUMMARY The Korean honey market presents both opportunities and challenges for Canadian honey exporters. On the one hand, domestic honey production in South Korea has declined sharply in recent years due to climate change and insect damage, creating a potential gap in supply that Canadian exporters could fill (Foreign Agricultural Service, 2020). Additionally, Korean consumers view honey as a healthy and premium sweetener, with increasing consumer traction towards healthy spreads, and the organic segment is projected to register the fastest CAGR of 5.9% from 2023 to 2030 (Government of Canada, n.d). On the other hand, there are several unfavorable aspects of the Korean honey market for Korean Food, including import restrictions and high tariffs, low consumer trust, strong domestic competition, limited distribution channels, and consumer behavior (FAO Organisation, n.d). The Korean government relaxed import restrictions in 2011, allowing for the import of honey for hotel use, but this change could be both favorable and unfavorable, depending on the company's strategy (Foreign Agricultural Service, 2020). To succeed in the Korean honey market, Canadian exporters should focus on marketing strategies that emphasize the quality and authenticity of their honey, including clear and informative labelling, indicating the exact geographical origin, and highlighting the health benefits of their honey. Additionally, Canadian exporters should consider partnering with local distributors and retailers to gain access to established distribution channels and consumer networks (FAO Organisation, n.d). In summary, the Korean honey market presents both opportunities and challenges for Canadian honey exporters. While there are potential gaps in supply due to declining domestic production, there are also significant regulatory and competitive challenges to overcome. By focusing on quality, authenticity, and effective marketing strategies, Canadian exporters can successfully enter the Korean honey market and capitalize on the growing demand for healthy and premium sweeteners.
  • 5. References FAO Organisation. (n.d). Honey Marketing and International Trade. Retrieved from FAO ORG: https://www.fao.org/3/i0842e/i0842e16.pdf Foreign Agricultural Service. (2020, October 22). South Korea: Korea Honey Market Brief. Retrieved from Foreign Agricultural Service: https://fas.usda.gov/data/south-korea-korea-honey- market-brief Government of Canada. (n.d). Customized Report Service-Sweet Spreads and Honey in South Korea. Retrieved from Agriculture Canada: https://agriculture.canada.ca/en/international- trade/market-intelligence/reports/customized-report-service-sweet-spreads-and-honey- south-korea