Oct 17, 2025
Kwangdong Pharmaceutical released the first approved health functional food in late 2024, but more are on their way as the market evolves to meet changing consumption patterns.
South Korea remains one of New Zealand’s most valuable and dynamic markets for deer velvet — but it is also a market in transition. A closer look at quarantine statistics, product launches, and trade reporting through to the third quarter of 2025 shows trends in how Korean manufacturers are sourcing, processing, and positioning deer velvet in the health and well-being category. Beneath the headline numbers sits an increasingly sophisticated industry that’s blending traditional medicine with modern functional-food science.
Import trends – total volumes stable, composition shifting
When measured on a rolling-year basis (Oct 2024 – Sep 2025), total Korean deer velvet imports were almost identical to the previous year. The mix of that trade, however, has changed, with imports of frozen velvet up year-on-year, led almost entirely by New Zealand. While direct imports of dried velvet fell, imports from China increased, while Russian volumes softened slightly.
On the surface, China looks to have captured greater share in dried velvet, but this can be misleading. Most consignments declared as “from China” are re-exports of New Zealand velvet that is processed in Chinese slicing or drying facilities before onward shipment. The statistical distinction therefore underplays the real contribution of New Zealand farms to the Korean market and well-being of citizens.
“When we look behind the numbers, we see Kiwi velvet continuing to underpin the health and well-being market here,” said JongKyu Jang, DINZ’s in-market representative based in Seoul. “It’s valued by Korean manufacturers because it performs consistently, meets the highest standards, and aligns perfectly with what local consumers expect from a premium natural ingredient.”
Seasonality still matters
Deer velvet trade remains seasonal, and this year mirrored that pattern: competition for supply in early winter, a pause through August, and renewed activity in late September as Chuseok (a mid-autumn harvest festival sometimes called Korean Thanksgiving) promotions began. Korean buyers sometimes hold back inventory during August, anticipating stronger prices and increased gift market demand once national promotions kick off.
Market sentiment reports consumption stable
Overall market sentiment among Korean manufacturers remains positive but measured. Industry players describe 2025 as a “breather” year — steady underlying consumer demand, tighter regulation, and greater focus on product innovation rather than sheer volume. The growth that we’ve experienced in healthy foods has matured, with any future growth coming from health functional foods, although the benefits (of volume) will take time to materialise.
Evolving competitive landscape
New Zealand has advanced its position as the premium source of frozen velvet, used in the most tightly regulated and scientifically substantiated product lines. Korean companies such as KGC, HY, and Yuhan Care consistently highlight “New Zealand origin” in marketing claims, linking it to safety, purity, and welfare assurance.
Rhys Griffiths, CEO of DINZ, notes that “the relationships New Zealand exporters have built over the years are the real differentiator. It’s trust, not luck, that keeps our velvet at the heart of Korea’s premium health sector.”
Product innovation – from tonic to science
The Korean consumer is changing, with velvet now part of a functional food movement that prizes clinical validation and convenience. Recent highlights or ongoing projects include:
- Kwangdong Pharmaceutical became the first company to launch a product (late 2024) with a health functional food claim approved by MFDS. Its launch product targets prostrate health and anti-fatigue.
- HY’s fermented deer velvet probiotic powder gained MFDS approval in September 2025, claiming benefits for maintaining muscle strength in older adults.
- Yuhan Care is developing Korea’s first immune function-approved deer velvet supplement.
- KGC’s CheonNok line continues to diversify, launching kid-friendly pouches, women’s and senior formulas, and emphasising “scientific proof” in nationwide advertising
These initiatives illustrate a clear migration toward evidence-based wellness, where deer velvet competes not just against ginseng, but alongside collagen, probiotics, and amino-acid blends.
Steady volume, higher end value (in time)
Looking ahead to 2026 and beyond, consumption is likely to remain stable, but the value and sophistication of use by the consumer may rise. The key will be how New Zealand farmers can capture more of that value, lessening the influence that commodity traders have over farmgate returns.
Despite tighter MFDS oversight and complex global supply chains, the Korean market’s fundamentals are sound: rising consumer interest in health and wellness, limited domestic supply, and an appetite for products that blend heritage, purity, and proof. In short, the story of deer velvet in Korea is about credibility, functionality, and long-term partnerships. In these, New Zealand velvet continues to lead from the front.
While Griffiths acknowledges that this season’s wholesale market has some uncertainty, brought about by commodity traders maximising their respective profits, actual consumer demand remains firm. Strong consumer demand reflects the hard work of New Zealand’s velvet exporters and partners, whose long-term relationships, professionalism, and on-the-ground commitment in Korea have built deep trust and positioned New Zealand velvet as the benchmark for quality, safety, and integrity in the market.
