A Daiso store. News1
Daiso, Korea’s discount variety store chain, has expanded into the fitness supplement market, shaking up the health food industry once again with ultra-low-priced products ranging from vitamins and probiotics to diet aids and now exercise supplements such as creatine.
“Creatine for 5,000 Won”… Expansion Into Workout Supplements
According to industry sources on Tuesday, Asung Daiso has been selling fitness supplement brand Extreme’s “Mono Creatine Plus 120g” and “Arginine Energy On” since April.
Mono Creatine Plus is priced at 5,000 won ($3.60) for a 40-day supply, while the arginine product sells at 1,500 won for a two-pack. While the existing fitness supplement market has been centered on large-volume, high-priced products, Daiso has significantly lowered the entry price with a “small-volume, ultra-low-price” strategy.
Exercise supplements sold at Daiso. Captured from Daiso Mall
Creatine is a representative exercise supplement ingredient involved in energy production within muscles and is considered a virtual “must-have item” among fitness users. Arginine is also a widely used ingredient in pre- and post-workout products.
While Daiso had previously focused on “light exercise foods” such as protein bars and high-protein drinks, the company has now entered the full-fledged strength training supplement segment.
The industry views Daiso’s move as more than a simple new product launch.
“A market has opened up where consumers who found it burdensome to purchase expensive products can now try them affordably,” an industry official said. “Competition in health foods is now becoming segmented even into the exercise supplement area.”
Search results for “diet” on Daiso Mall. Captured from Daiso Mall
Must-Buy Item When Visiting Korea… Diet Aids Gain Popularity
Daiso’s expansion into health foods had already been foreshadowed by its diet aid offerings.
Recently, products related to body fat and blood sugar management, such as green tea catechin and banaba leaf extract, have been selling steadily at Daiso, and convenient stick-type supplements such as “Pueung Daily Burning” have also gained popularity.
The response has been particularly swift among foreign consumers. Reviews such as “the price is amazing,” “great for light shopping while traveling in Korea,” and “so easy to take” have been posted on social networking services (SNS) and online communities, with “Korea Daiso diet items” being consumed as a form of content.
However, experts point out that caution is needed regarding ingredient content and dosage. High-concentration catechin or blood sugar-related ingredients may cause side effects depending on individual conditions, meaning there are limits to approaching them simply as “value-for-money products.”
“Value for Money Is the Answer”… Health Foods Drive Sales
Such product expansion is also leading to earnings growth.
Asung Daiso recorded its largest-ever performance last year, with revenue of 4.54 trillion won ($3.26 billion) and operating profit of 442.4 billion won ($318 million). Revenue rose 14.3% and operating profit climbed 19.2% from a year earlier.
“Amid consumption polarization caused by high inflation, value-oriented consumption has spread,” the company said. “The expansion of strategic products such as cosmetics, fashion, and health functional foods has driven earnings growth.”
Daiso has been attracting the MZ generation by launching more than 600 new products each month, and health foods are rapidly establishing themselves as a core category.