One-price shop Daiso is venturing into the health supplement business, announcing on Feb. 18 that it will begin selling various dietary supplements, including vitamins priced under 5,000 won. Similarly, Olive Young, a major cosmetics retailer, launched its own supplement brand, Tantan, late last year. Major food companies like Nongshim, Daesang, and hy (formerly Korea Yakult) have also been releasing dietary supplements that incorporate their proprietary technology.
Companies are rushing into the health supplement market, seeing it as the next big opportunity, similar to the global success of K-beauty and K-food. Both industries expanded globally after domestic growth slowed, and a similar trend is emerging for supplements. While South Korea’s domestic supplement market peaked during the COVID-19 pandemic and has since stagnated, surging exports and rising demand from foreign tourists have reignited industry interest.
A Vietnamese influencer once showcased a collagen supplement she bought at Olive Young in South Korea, claiming it significantly boosted her hair growth. The video, posted on TikTok early last year, is one of hundreds of similar posts where foreign tourists review Korean health supplements like vitamins, collagen, and probiotics. In another viral TikTok, a Mexican influencer mixed a Korean weight-loss supplement into water, attributing K-pop idols’ slim figures to it. The video has surpassed 200,000 views.
The surge in Korean health supplement exports highlights their growing global popularity. In 2023, exports reached $324.19 million (approximately 467.8 billion won), more than doubling from $142.68 million (about 205.9 billion won) in 2019. Industry experts expect last year’s exports to have set a new record. This contrasts with the domestic market, where supplement sales fell 3.2% in 2023 to 3.77 trillion won ($2.62 billion).
South Korea’s supplement industry is also benefiting from the country’s fast manufacturing capabilities and certified quality. Exporting dietary supplements can be complex due to varying regulations across countries, often requiring approval from agencies like the U.S. Food and Drug Administration (FDA). However, Korean original design manufacturer (ODM) companies such as Kolmar BNH, Cosmax NBT, and Novarex help brands overcome these hurdles by securing the necessary certifications. Kolmar BNH obtained pharmaceutical-grade certification from Australia’s Therapeutic Goods Administration (TGA), streamlining the export process. Similarly, Cosmax Bio received cGMP certification from NSF International, which is recognized in 90 countries. A Cosmax staffer said, “By acquiring certifications required by target markets, we have reduced export barriers.”
Unlike pharmaceuticals, health supplements are classified as food products, lowering entry barriers for food companies. These firms can leverage their existing expertise in food research and technology to develop supplements. In 2020, Nongshim launched its own supplement brand, Lifill, debuting with a collagen product. A Nongshim staffer explained, “Our flavor research lab, which develops ramen seasonings, has long studied protein structures. Since collagen is also a type of protein, producing supplements was relatively easy.”
Some companies are adapting existing products into health supplements. hy, which pioneered Korea’s first dual-form probiotic drink, Coopers, is now applying this technology to supplement manufacturing. It introduced Will Jakyak (peony), a dual-phase gut health supplement that pairs its signature 2000-launched product Will with a complementary pill format.
