Market Analysis for Healthy Burgers
The fast food market is one of the markets that have been vastly globalized, with world markets taking similar forms in the fast food industry. The fast food industry has grown exponentially in South Korea since the 1988 Seoul Olympic Games, with 1500 fast food stores in the country (Park 88). Recent years have, however, seen the Korean society become more health conscious with concerns arising over increasing obesity especially among the younger generations, which comprises of the most consumers of fast foods. This is the main reason that inspired the idea of healthy burgers to replace the traditional burgers which have been singled out for their high calories content. Healthy burgers replace buns in regular burgers with lettuce which has fewer calories and is, thus, less hazardous to the health of consumers. This is a market analysis for healthy burgers in the Korean market examining the consumption rates, market size, market trends, potential future growth, and factors that may hinder the success of healthy burgers in the Korean market.
Consumption Rates and Market Size
The market size for fast foods in Korea is $16.2 billion with an annual growth rate of 13% (Park 88). These are greatly enticing figures for potential investors in the fast food industry as they illustrate to rapid growth and an increasing market in the country, especially since burgers are the third most popular fast food in the country after fries and pizza (Joo, Ju and Chang 304). However, health concerns in recent years occasioned by increased cases of obesity have seen a decline in the consumption of burgers in the country. This has created a market for healthy burgers which are less hazardous to the health of their consumers.
Market Trends and Potential Growth in the Market
More Korean teenagers have become westernized in recent years while young working Koreans pursue greater convenience from eating in fast food restaurants especially during working hours (Park 88). This creates a market for such fast foods as burgers, pizza and fries. Increasing health concerns among the Koreans has, however, led to less consumption of these foods in the country (Joo, Ju and Chang 299). This creates a need gap for healthy burgers as they replace the more popular regular burgers with less health risks for the consumers. The market for healthy burgers exists especially among the older generation and increasingly among the younger generation in athletes and fitness enthusiasts. It is bound to grow further as more and more young people become more health conscious.
Barriers to Entry in the Market
The entrance of healthy burgers into the Korean market will face many hurdles starting from the challenge of competition from preexisting fast food restaurants which predominantly produce regular burgers. It will also be difficult to sell the idea to the public which is already accustomed to the regular burgers. Studies show that Koreans affinity for fast foods is based more on hedonic values, which are based on customers gaining gratification rather than utilitarian values which are based on gaining value for money and receiving services and products that good for the customer’s general wellbeing (Park 89). It will, thus, be difficult for the healthy burgers to compete with the regular burgers which are perceived to be more delicious than the healthy burgers. Finally, despite their healthier composition, healthy burgers will face the challenge of association, as most fast foods are considered unhealthy, and the Korean market is greatly concerned with the health effects of the food consumed. Introducing the healthy burgers will require vigorous marketing to convince the public on their healthier composition.
To conclude, globalization has led to the interchange of cultures among different peoples of the world and has led to the birth of a common culture the world over. The effects of this phenomenon have permeated every area of life and touched on the sociopolitical lives of all the people involved. The fast food industry has been one of the industries that have been vastly globalized with markets taking similar forms the world over. The industry has experienced exponential growth in the Korean market. Many teenage Koreans as well as the working generation prefer to have meals at fast food restaurants especially during the busy working hours. This has created a market for such fast foods as burgers in the country. However, increasing health concerns especially among the older generation as well as athletes and fitness enthusiasts among the young has created a need gap for healthy burgers. The market for healthy burgers has the potential for future growth owing to increased awareness around food health among both the old and the young in Korean society. The entrance of healthy burgers is, however, bound to experience challenges such as tough competition from established fast food companies and wrong perceptions among the Korean public.