South Korean convenience store chain CU on March 11 said that it will introduce health supplement products, becoming the first in the industry to do so, while expanding its health food-specialized stores in response to growing sales.
CU’s health food category has shown steady sales growth, with an increase of 5.3% in 2021, 27.1% in 2022, and 18.6% in 2023. Last year, health food sales surged by 137% in just one year, fueled by the popularity of various dual-formulation products.
To keep up with this trend, CU selected 3,000 stores last October to focus on health food displays, offering over 40 products and special displays. After these stores saw daily health food sales three times higher than regular stores last month, CU is aiming to increase the number of health food-specialized stores to 5,000 by the first half of this year.
A CU outlet near Myeongdong Station, specializing in Korean food and launched late last year, has a dedicated health food section offering over 30 products, including health supplements. By February, daily sales of health supplements at the store had quadrupled compared to the initial launch.
CU plans to expand health supplement testing at its direct stores this year and will begin talks with major drugmakers about launching new products. Once the product lineup is finalized, CU will expand sales to franchise stores nationwide in the first half of next year.
Before fully entering the health supplement market, CU will begin selling Dong-A Pharmaceutical’s health foods this month, including Vitagran and Ilo Kamut Brand Wheat Enzyme.
Currently, most health foods sold in convenience stores are classified as “other processed products” rather than legally recognized health supplements. For instance, vitamin products are formulated with lower vitamin content and additional ingredients to qualify as “other processed products.” As a result, store owners must obtain approval to sell health supplement products in franchise stores.
Pharmacists have raised concerns, arguing that selling health supplement products through other channels harms pharmacy sales. There are also worries about potential side effects from unregulated purchases.
One-price shop chain Daiso began selling health supplements from Daewoong Pharmaceutical, Ilyang Food, and Chong Kun Dang at 200 stores on Feb. 24, but some pharmaceutical companies pulled their products due to backlash from pharmacists. The Korea Fair Trade Commission is now investigating whether the Korean Pharmaceutical Association violated any laws during this process.
