Meal replacement products are expected to record a 46% current value increase to reach Won597.8 billion in 2012. Consumers’ desire for beauty and slimming down led to strong growth of the market. Direct selling companies showed a strong presence meal replacement, and Herbalife Korea continued dominating the market throughout the review period. According to the Fair Trade Commission, Herbalife Korea had the most sales from its meal replace meal slimming product Herbalife Nutritional Shake Mix Cookies flavour in 2011 and 2012. As the company runs a weight management programme as well as sponsors celebrities, its meal replacement products continue expanding value share in South Korea.
Whilst direct selling companies dominate meal replacement in South Korea, Herbalife Korea is expected to account for a 92% value share in meal replacement in 2012. The company runs a weight management programme using its meal replacement products including Herbalife Nutritional Shake Mix. Also, the company actively promotes such products by sponsoring famous celebrities and by providing trial products to consumers who are willing to share their changes online after they consume Herbalife meal replacement products. As people share how much weight they were able to lose with photos and videos on the internet, potential consumers are easily convinced and this leads to their purchasing the company’s products. With such marketing activities, Herbalife is expected to continue dominating meal replacement in South Korea in 2012 and in the foreseeable future.
U-KISS famous Kpop group
Over the forecast period, constant value sales of meal replacement products are expected to grow at a CAGR of 6%. As the number of households with one or two persons is growing, the demand for meal replacement products is expected to increase. Also, meal replacement slimming products are likely to attract consumers due to offering a convenient way to lose weight whilst more people are suffering from obesity caused by westernised diets. To cater such needs, major manufacturers including Herbalife and Nu Skin are expected to launch various meal replacement products with new ingredients and functions.