Kolmar BNH aims to go global with health functional foods

Kolmar BNH chief executive officer Yoon Yeo-won

South Korean health-related materials developer Kolmar BNH Co. aims to play a leading role in creating a Korean wave in the global health functional food market, according to the company’s chief executive officer Yoon Yeo-won.

“Foreign ingredients dominated the health functional food market when the company was founded in 2004,” Yoon said, in an interview with Maeil Business Newspaper on Monday. “But Kolmar BNH has consistently grown based on Korean natural materials, including HemoHIM. The company itself has grown, but we also take pride in having significantly contributed to the domestic health functional food market.”

HemoHIM, an immune-boosting health functional food made from Korean natural ingredients such as angelica, cnidium, and peony, is a mega-hit product in the health food sector that is popular both domestically and internationally. It has generated annual sales of over 100 billion won ($72.2 million) since its launch in 2004 and its popularity abroad has led to exports to major countries, including the United States and Russia. As a liquid product made from herbal medicines, it leaves an herbal taste in the mouth after consumption.

Kolmar BNH is targeting the global market with the most Korean health functional foods, spearheaded by HemoHIM. The company recorded 64 billion won in overseas sales in the first quarter of 2024 alone.

Kolmar BNH is the first research-based company in Korea established jointly by Korea Kolmar and the Korea Atomic Energy Research Institute, and is celebrating its 20th anniversary in 2024.

Yoon is the daughter of Kolmar Holdings Founder and Chairman Yoon Dong-han and the sister of Kolmar Group Vice Chairman Yoon Sang-hyun. She joined Korea Kolmar’s marketing team in 2002 and has been leading Kolmar BNH as CEO since 2020. She has taken full responsibility as the sole CEO from 2024 onwards as the company moved away from a co-CEO system.

“Our goal is to achieve 1 trillion won in sales by 2030,” Yoon said. “We will increase the overseas sales ratio from the current 30 percent to 40 percent.”

She added that the company is actively seeking M&A targets to enhance its competitiveness, particularly focusing on companies specializing in formulations and materials.

The health functional food industry, which enjoyed a boom due to demand during the Covid-19 pandemic, has faced growth stagnation as the pandemic ended, and Kolmar BNH was no exception.

“The health functional food market grew by 5 to 10 percent annually since 2019, increasing by 27 percent in five years,” Yoon said. “But growth slowed last year as Covid-19 ended. Competition has become fiercer as global health functional food brands enter the Korean market,”

Despite the decline in sales, Kolmar BNH has maintained its R&D investment at 3.9 percent of sales, the highest level in the industry. The CEO noted that although its sales temporarily slowed in 2023, it will overcome the crisis by targeting the global market. Kolmar BNH’s overseas sales in the first quarter of 2024 increased by 52.1 percent compared to the same period during the previous year, according to Yoon.

The CEO also aims to continue enhancing corporate and shareholder value.

“We will ensure that the fruits of corporate growth and investment are sufficiently distributed to shareholders,” she said. “We aim to be the best in responsible management and shareholder returns.”