Background and Purpose
As the number of one-person and double-income families increases, the market for home-meal replacements (HMRs) is rapidly growing. However, if the HMR market’s growth is not linked to local farming, its growth will not have positive impacts on domestic agriculture, such as farmers’ income increase.

Therefore, it is necessary to analyze HMR producers’ characteristic and factors which encourage or discourage domestic use of agricultural products. Specifically, we considered measures from the perspectives of HMR ingredient suppliers and HMR consumers.

The purpose of this research is to suggest measures to increase domestic agricultural products in HMRs by analyzing ingredients of HMR products, types of transactions and supply.

Research Methodology
This research applies various analysis methods, including literature reviews, interviews of HMR producers, vendors and experts, surveys for producers and consumers, case studies on overseas policies. The research examined and identified the characteristics of HMR production, sales, and ingredient transaction/procurement through interviews. For quantitative analysis, this study used a Tobit model and Heckman’s two-step procedures, representing censored regression models, and logistic regression analysis to explore factors affecting the use of domestic ingredients including the HMR companies’ characteristics (firm age, HMR sales, etc.), exports, and contract-based cultivation. Concerning consumers’ preference analysis, we used logistic regression and ordered logit models based on consumer survey data.

Key Findings
The total HMR sales in 2019 amounted to KRW 4.22 trillion.
Ready-to-heat (RTH) food and ready-to-cook (RTC) food took the largest share, followed by ready-to-eat (RTE) food, fresh convenience food, and meal kits (ready-to-prepare or RTP). HMR companies with large sales mainly produce hamburgers/sandwiches, instant soup/ stew, and dumplings. Their products are mostly sold through convenience stores. Meal kits, whose demand is soaring recently, are sold through megastores, while fresh convenience products, such as salads, are sold mainly by online malls.

(For more information, please refer to the report.)

Researchers: Kim Kyungphil, Yoo Jeongho, Lim Seungju, Kim Jiyeon, Myeong Suhwan, Seok Junho
Research period: 2020. 1. ~ 2020. 10.
E-mail address: kkphil@krei.re.kr