South Korea: A demanding and strategic market for cherries

Written and reported by Macarena Bravo | Lee esta noticia en Español 

After a second consecutive challenging season, the Chilean cherry industry is looking at diversification as a market strategy to jumpstart a battered and bruised sector. 

In this vein, at the 7th Annual Global Cherry Summit in Santiago, Chile, Patricio Bobadilla, an agricultural economist at PSK International, spoke about South Korea's potential as an alternative market to China.

Bobadilla detailed that the Asian country is a sophisticated and demanding market, with multiple growth opportunities for Chilean cherries. However, he warned that structural challenges exist that force the industry to raise its standards.

A long path to South Korea

Bobadilla explained that, to grow in the Korean market, it is key to understand its culture. 

After the war in the 1950s, the country developed rapidly thanks to a set of social values centered on discipline, hard work, and constant pressure to compete at peak levels. The expert explained that this mindset remains, and it is reflected in consumer behavior: “Buyers seek the best price-quality ratio and are constantly comparing.”

In this context, fruit—and cherries in particular—are no exception. Aesthetics and presentation are determining factors, and there is no room for second-quality products.

Likewise, he emphasized that tolerance for defects is minimal, and any defect can result in severe price penalties or even the inability to market a product.

China vs. South Korea

The speaker pointed out that South Korea is a much smaller market than China, with about 50 million people, smaller households, and more individual consumption habits. These characteristics must align with sales formats, favoring small packages of 300 or 400 grams.

Another factor that sets it apart from China is logistics. Bobadilla explained that South Korean ports do not operate during weekends, which can easily extend marketing times.

Bobadilla highlighted that Chilean cherries have successfully managed to position themselves in this market as a competitive product, especially because the largest volume is shipped by sea. However, he warned that maritime shipping also implies challenges. Unlike other countries that export by air, Chile faces long transit times that can exceed 30 days, potentially impacting the fruit’s condition.

Projection: The future of the Korean market 

In terms of growth, the executive stated that the Korean market has shown progress, albeit more moderate than in China. 

"Currently, shipments are around 350 containers per season, with the potential to reach 600 in the medium term," he said.

However, growth must be carefully managed, as the market is highly sensitive to volume: "If overloaded, prices can fall quickly and cause a collapse," he noted.

Bobadilla stressed the importance of precise planning, both in total volume and in the weekly distribution of shipments.

In line with the above, he said that the main challenge for the Chilean industry is quality. This is not just about increasing caliber, but also improving attributes such as firmness, sugar content, and post-harvest condition.

Quality has different aspects, Bobadilla said, since “it is not enough to separate by color. Within the same box, different qualities may exist, and this is not tolerated in Korea.”

In this regard, he emphasized the importance of assessing the fruit in its final format, that is, already packaged, just as it will reach the consumer.

Despite these challenges, Bobadilla pointed out that opportunities exist, considering the sustained decrease in agricultural land in South Korea, the aging population, and a growing preference for healthy foods, which favors the demand for imported fruit.

“Access to this market is reserved for experienced operators, capable of meeting demanding standards and properly managing risks. Korea is a high-value market, but it does not forgive mistakes. Here, there is only room for excellent quality fruit," he concluded.

Related stories

Southern hemisphere cherries are missing out on a $800 million opportunity

Chile’s cherry industry pivots its strategy as Chinese consumer expectations tighten