Want to Eat Comfortably but Also Cook... 'Meal Kits' Taking Over the Dining Table

CJ Cookkit, New Menu Every 2 Weeks
SPC Introduces Camping Kit
hy Launches 'It's On Gyeonggyu Restaurant'
Surging Demand for Meal Kits Attracts Large Corporations
Market Size Increased 40% Last Year

Domestic Meal Kit Market Outlook (Source: Korea Agro-Fisheries & Food Trade Corporation (aT) Food Industry Statistics Information)

[Asia Economy Reporter Seungjin Lee] The meal kit market is experiencing rapid growth. Meal kits, composed of pre-prepared ingredients, offer convenience while allowing consumers to enjoy the feeling of cooking themselves, earning the love of those seeking authentic ‘home-cooked meals.’ In the past, meal kits supplied by small and medium-sized food companies through large supermarkets have recently seen explosive growth as major domestic food conglomerates have entered the market.

Major Food Conglomerates Target Meal Kits

According to the food industry on the 11th, major domestic food conglomerates such as CJ CheilJedang, SPC Group, and hy are actively expanding their specialized meal kit brands. CJ CheilJedang’s ‘Cookit’ has been launching at least four new menu items every two weeks this year. They plan to expand their product lineup to around 100 items annually.

Cookit sells exclusively through its own online mall instead of open markets. It has attracted consumer attention with a differentiated system where product themes vary from Korean to global menus, and available menus are set by delivery date. Sales from January to May this year increased by 100% compared to the previous year. Considering that the same period last year saw explosive demand for meal kits due to COVID-19, this year’s growth is even steeper.

hy has leveraged its ‘Yakult Ajumma’?known as Fresh Managers?to increase its market share in meal kits. Fresh Managers deliver hy’s meal kit brand It’s On by pulling refrigerated carts in a visiting service that has gained popularity. Recently, hy partnered with broadcaster Lee Kyung-kyu to launch the meal kit brand ‘It’s On Kyungkyu Restaurant,’ aiming to raise brand awareness.

SPC Group has also stepped into the meal kit market. The Italian restaurant La Grillia, operated by SPC Group, has offered eight meal kit products including pasta, steak, and risotto since November last year. These products have gained a reputation for ‘recreating the taste of dining in the restaurant,’ leading to a 35% increase in sales from the first quarter to April-May this year. Riding this popularity, they recently introduced a ‘Camping Kit’ designed for immediate use at campsites, featuring steak and vegetables seasoned with salt and spices.

SPC Samlip 'Daily Mix Salad Kit'

31% Annual Growth Rate

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) Food Industry Statistics Information, the domestic meal kit market size was 188.2 billion KRW last year. The market, which was only 1.5 billion KRW in 2017, has grown 125 times in three years. This year, it is expected to reach 268 billion KRW, an increase of more than 40% compared to last year.

Meal kit startups such as Fresh Easy, My Chef, and Tasty Nine rapidly expanded the early market, and recently, food companies, large retailers, and online dawn delivery services have entered the meal kit market, accelerating growth. The domestic meal kit market is projected to grow at an average annual rate of 31% until 2025, expanding to 725.3 billion KRW.

Demand for meal kits has increased further as COVID-19 has prolonged. In the early stages of COVID-19, many consumers sought home meal replacements (HMR) that maximized convenience. However, as home cooking continued, consumers shifted their attention to products that provide the feeling of cooking themselves, even if less convenient, leading to a surge in demand for meal kits that omit the most cumbersome process of ingredient preparation. Additionally, developing popular dining-out menus and regional specialty menus into meal kits also played a role.

A food industry official explained, "Many consumers who had not previously experienced meal kits tried them due to COVID-19 and have continued to purchase related products. Since meal kits are convenient yet provide the feeling of cooking themselves, and competition among companies has intensified leading to more diverse menus, consumer demand for meal kits is expected to continue increasing."