Thin Skin or Original... Frozen Dumplings Battle for 2nd Place is Extremely Close

Pulmuone Thin-Skin Dumplings Cause Major Shift
Overtake Haitai to 2nd Place in 2019
Closing Gap with Haitai, Hot on Their Heels
Preserving Tradition While Adding Premium Quality

CJ CheilJedang Bibigo Dominates
Overwhelming 45% Market Share in First Half

[Asia Economy Reporter Seungjin Lee] The competition for second place in the 550 billion KRW domestic frozen dumpling market is fierce. While CJ CheilJedang is dominating the market as number one with its ‘Bibigo’ brand, Pulmuone and Haitai Confectionery are locked in a neck-and-neck battle for the second spot.

‘Yalpi Dumplings’ Pulmuone vs. ‘Gohyang Dumplings’ Haitai

According to Nielsen Korea on the 9th, last year the domestic frozen dumpling market grew to about 550 billion KRW in retail sales. This is an increase of approximately 50 billion KRW compared to 2019, which is attributed to the rise in home dining (home-cooked meals) following the spread of COVID-19.

The industry’s focus is on the fight for second place. Until 2018, Haitai Confectionery had firmly held the second position following the market leader CJ CheilJedang. However, in 2019, Pulmuone caused a market upheaval by launching ‘Thin Skin, Fully Stuffed Dumplings.’ That same year, Pulmuone raised its market share to about 15%, while Haitai Confectionery’s share dropped to the 12% range.

Haitai Confectionery responded by narrowing the gap with aggressive marketing and launching a new product, ‘Thickly Stuffed Thin Skin Dumplings.’ The market share gap, which had widened to 3 percentage points, narrowed to about 1 percentage point last year and further tightened to 0.6 percentage points this year, bringing Haitai Confectionery right on Pulmuone’s heels. As of the first half of this year, Pulmuone’s market share stands at 13.4%, and Haitai Confectionery’s at 12.8%. In terms of retail sales, the difference is about 1 billion KRW, making it a literal ‘photo finish.’

This year, they added a premium strategy. In July, Haitai launched ‘Myeongga Gohyang Dumplings,’ a premium product of the 34-year-old traditional ‘Gohyang Dumplings,’ choosing the size of the original Gohyang Dumplings rather than the currently popular ‘Wang Gyoja,’ targeting the traditional consumer base.

Pulmuone countered by releasing ‘Semo Yalpi Dumplings,’ a follow-up to Yalpi Dumplings. As a premium version of the original Yalpi Dumplings, it overlaps with the consumer base of ‘Myeongga Gohyang Dumplings.’ Additionally, to target the MZ generation (Millennials + Generation Z) and vegetarians, Pulmuone launched its first plant-based dumpling, ‘Thin Skin Fully Stuffed Semo Dumplings Tofu Kimchi,’ differentiating itself further. Since its launch in March 2019, Yalpi Dumplings have achieved cumulative sales of 55 million packs in 2 years and 5 months, with cumulative revenue exceeding 200 billion KRW as of July this year.

Bibigo’s Unstoppable Lead

Ignoring the battle for second place, CJ CheilJedang continues to hold an unrivaled number one position in the frozen dumpling market. The market share of ‘Bibigo Dumplings,’ which was 42% in 2019, rose to 45% last year and has maintained above 45% in the first half of this year.

They are also accelerating overseas market expansion. Recently, in Japan, the names of six dumpling products were changed from ‘Gyoza’ to ‘Mandu’ to promote Korean dumplings. In the United States, Bibigo Dumplings have surpassed a 40% market share in the frozen food market, securing an overwhelming first place. Thanks to these achievements, Bibigo Dumplings exceeded 1 trillion KRW in sales as a single brand last year.

With the rapid growth of the frozen dumpling market, Ottogi and Sajo Daerim have also been launching new products one after another. Ottogi appointed actor Jo In-sung as the advertising model for ‘X.O. Dumplings’ and released a new TV commercial. Sajo Daerim targeted vegetarians with ‘Daerim Sun 0.6 Pure Dumplings,’ made entirely without meat, using 100% soybean pulp and tofu as the filling. A food industry insider said, “The outcome of the competition for second place will be decided after the winter, when demand for dumpling products increases. Since the young consumer base has grown significantly, new product launches targeting them will continue.”