Evaluation of South Korea as an Export Market for Alaska Seafood P - - PowerPoint PPT Presentation

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Evaluation of South Korea as an Export Market for Alaska Seafood P - - PowerPoint PPT Presentation

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Evaluation of South Korea as an Export Market for Alaska Seafood P RESENTED B Y : E RIC R OSENBERG AND K RISTINE F ARWELL B RYANT C HRISTIE I NC . July 27, 2016 1 Bryant Christie Inc. Background BCI helps companies and organizations open,

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Evaluation of South Korea as an Export Market for Alaska Seafood

PRESENTED BY: ERIC ROSENBERG AND KRISTINE FARWELL BRYANT CHRISTIE INC.

July 27, 2016 1

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Bryant Christie Inc. Background

– International Marketing – Research and Evaluation – Global Access – Data Services – Tech

July 27, 2016 2

  • BCI helps companies and organizations open, access, and

develop international markets

  • Founded in 1992, we focus on the agricultural, food, and

beverage sectors

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BCI’s Research and Evaluation Unit

  • Internal staff of six – global network of subcontractors
  • Research, trade, economics background
  • Surveys, interviews, desk research

Resources and Capabilities Core Services

  • 3rd party Cooperator program evaluations
  • Market research studies
  • Trade and regulatory databases
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Introduction: Research Objectives

  • Provide tactical recommendations should ASMI choose to enter

the market

July 27, 2016 4

  • Asses current market conditions for imported

seafood/Alaska seafood

  • Evaluate growth opportunities and constraints

 By species  By sector

  • Determine the feasibility of an ASMI marketing program in country
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BCI’s Methodology

July 27, 2016 5

  • Desk research
  • 55 interviews (suppliers, importers, distributors,

government officials, retail and foodservice, etc.)

  • Market visits – Seoul and Busan

 U.S./ASMI/Korean Trade Statistics  FAOSTAT  USDA/AgCanada/Korean fishery reports

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The Market in General

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  • Population – 49.1 million

 Aging population – familiarity and health  Younger consumers - health and convenience  Food safety important to all  Sustainability less so

  • GDP per capita - $36,700 (U.S. ~ $55,000)
  • 82.5% urban (Seoul, Busan, Incheon)
  • Consumer trends and influences
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Seafood Consumption

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  • Per capita consumption (~60kg); but as % of diet (4.5%)
  • Stated preference for fresh fish
  • Difficult to introduce new species
  • Developing market for premium species but will take time

 Traditional markets favored point of purchase  Pollock/sole/cod/roe are local, known, and valued  Used in soup, processed products, as condiments

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Distribution

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  • Retail – a few key chains; origin labeling in place; Alaska $$$
  • Hotel/Rest. – interest in premium products but price a factor
  • Institutions – large end-user of pollock/YFS (Korean and Russian)
  • Food processing – large surimi market; Alaska canned salmon
  • Importers/wholesalers – relied upon heavily by all end-use sectors
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Market Position

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  • South Korea estimated to be 6th largest Alaska seafood market

 Frozen salmon and fillets  Frozen cod fillets  Alaska pollock surimi

  • Estimated imports from Alaska ~ 54,000 MT (2014 - adjusted)
  • Recent growth (2012 – 2015) for Alaska seafood products including:
  • Korea is important storage market – not all “exports” remain
  • Estimated: 41.4% of Alaska exports to Korea enter as an import

 Frozen Alaska pollock  Frozen flatfish, other

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July 27, 2016 10

Adjusted Alaska Seafood Imports (Select Species) Product 2012 2013 2014 2015 % Change 2012-2015 Pacific Salmon Fillets, Frozen 18 80 902 202 1022.2% Other Pacific Salmon, Frozen 194 754 1,923 2,053 958.7% Cod, Fillet, Frozen 49 36 55 114 132.7% Cod, Frozen 3,677 3,923 3,501 3,958 7.7% Alaska Pollock, Fish Surimi 9,559 16,042 17,874 19,618 105.2% Alaska Pollock, Frozen 1,411 1,165 3,283 5,309 276.3% Plaice, Fillets, Frozen 631 677 611 903 43.1% Flatfish, Other, Frozen 11,831 11,600 12,769 14,528 22.8% Alaska Pollock, Roe 2,402 3,407 3,045 2,944 22.5% Other Fish Roe, Frozen 2,327 1,964 2,201 2,775 19.2% Good Value Under-utilized Premium

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Opportunities

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  • Alaska gaining name recognition from canned salmon
  • Alaska “brand” synonymous with quality, freshness
  • Importers looking to diversify supply
  • KORUS – gains still possible for cod fillets, pollock,

plaice, others

  • Demand for premium products
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Constraints

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  • Fresh vs. frozen
  • Competition/Price – Russia, Japan, Chile, China, Norway
  • Low awareness of Alaska product diversity and differentiation

Market Share – Good Value Species

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Competition - continued

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Market Share – Premium Species

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Estimated Opportunity/Constraint Rating

Product Opportunity Rating Constraint Rating Explanation King Crab Growing demand was reported, but price and sourcing from other origins presents a constraint. Black Cod Very small market, but is utilized by high-end restaurants and was identified as a potential replacement for other species. Sockeye Salmon Could replace Norwegian salmon due to preference for wild. Salmon was cited as an opportunity, but price, small market, and lack of consumer awareness challenge expanded use. Pink and Chum Salmon Trade reported strong opportunity. Alaska salmon has potential to replace farmed salmon, but Norwegian salmons' market share and lack of consumer awareness may hinder growth. Alaska Pollock Pollock continues to experience high demand in Korea. Decreasing tariff rates, lower supply from Japan, and potential health concerns from Russia present new opportunities. Price was cited as the main purchasing factor. Alaska Pollock Surimi Growing demand for convenience has decreased the use of surimi at home preparation, but new croquette product has increased the demand for pollock surimi in recent years. Expanded use could be encouraged through new product development. Cod heads and collars Very high demand which is limited by supply.

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Conclusions

July 27, 2016 15

  • Long-term outlook is needed to establish Alaska brand
  • Relationships already exist with key industry partners
  • ASMI export program in Korea is feasible and welcomed
  • FAS support likely

 Importers/distributors  Food manufacturers

  • Options for general trade, retail, and restaurant engagement
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Program Recommendations

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  • Limited initial approach – trade focused
  • Objectives should be to:

 Educate partners about Alaska seafood availability and diverse product mix  Inform about industry harvesting/freezing techniques and quality control  Differentiate from competing products where possible (origin, fresh vs farmed, food safety, etc.)  Foster relationships between suppliers and importers  Understand market dynamics (institutional purchases, Russian quotas, retail and food processing demand/trends)

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Suggested Tactics

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  • Trade representative/local office
  • Reverse trade mission/trade mission
  • In-market reception
  • Educational/trade materials

 Translated/customized  Hard copies  Industry participation crucial  Formal introductions  Partner appreciation

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July 27, 2016 18

Discussion

Bryant Christie Inc. 500 Union Street, 701 Seattle, WA 98101 Tel: (206) 292-6340 eric.rosenberg@bryantchristie.com