[Expanding Overseas K-Distribution] K-Food Takes Over the K-Wave Baton... Accelerating Its Pace

Last Year K-Food Export Value Hits Record High of $11.36 Billion
Extension of K-Content Boom... Growing Demand for Direct Experience of Korean Food Culture
Improved Accessibility for Overseas Purchases Also Key
Overseas Production Bases Operating Continuously for Smooth Supply and Distribution

[Asia Economy Reporter Eunmo Koo] ‘K-Food’ continued its global expansion last year, surpassing $10 billion in export value for the first time in history. Through K-content such as K-pop, movies, and dramas, K-Food has permeated overseas consumers and is accelerating local market penetration by leveraging familiarity as a weapon.

According to the Ministry of Agriculture, Food and Rural Affairs and the Ministry of Oceans and Fisheries on the 20th, despite difficult export conditions such as the global logistics crisis and COVID-19 last year, K-Food export value increased by 15.1% compared to the previous year, reaching $11.36 billion (approximately 14.7 trillion KRW). Among this, agricultural, livestock, and food exports amounted to $8.54 billion, up 12.9% year-on-year, and seafood exports recorded $2.82 billion, a 22.4% increase. It was the first time that agricultural products and food exports exceeded $10 billion last year.

By item, seaweed exports were the highest, increasing by 15.4% from 2020 to $693 million (897.4 billion KRW). Seaweed has set a new record for export value every year for over 10 years, largely thanks to the development of high value-added products such as organic seaweed bugak (crispy seaweed snack), vegetarian kimbap seaweed, and seasoned seaweed flakes. Additionally, marketing using characters familiar to infants and obtaining international certifications such as organic certification and food safety standards certification also contributed to export expansion.

Ramen exports followed seaweed, increasing by 11.8% year-on-year to $675 million (874.1 billion KRW), and representative traditional foods such as kimchi ($160 million, 10.7%) and ginseng products ($267 million, 16.3%) also showed strong growth. By market, China ($2.068 billion) and Japan ($2.064 billion) each exceeded $2 billion (2.59 trillion KRW), followed by the United States ($1.655 billion).

Annual Export Trends of Agricultural and Marine Products (Source: Ministry of Agriculture, Food and Rural Affairs · Ministry of Oceans and Fisheries)

Recently, the expansion of overseas demand for K-Food can be understood as an extension of the boom in Korean cultural content. As Korean pop music and movies gain global popularity, Korean food has emerged as one of the K-contents, increasing interest and marketability. Professor Jeonghoon Moon of the Department of Agricultural Economics and Rural Sociology at Seoul National University said, "Food is generally a cultural product that people are reluctant to eat if it is unfamiliar," adding, "Only when people become familiar through video content does fear disappear and curiosity arise." He explained that many people are expanding their experience by trying the food themselves after becoming familiar with the food eaten by their favorite singers or actors through K-content.

In particular, increasing accessibility by enabling the purchase of K-Food at major overseas retailers’ shelves has been evaluated as effective. Professor Moon said, "Even if many people want K-Food, the market cannot grow if it is difficult to obtain," and added, "Targeting major retailers frequently used by locals and getting K-Food onto key shelves has had a significant impact on recent growth." A representative example is CJ CheilJedang supplying the ‘Bibigo’ brand to about 30,000 stores across major U.S. retail channels such as Walmart, Kroger, and Costco.

Daesang, exterior view of the kimchi factory in LA, USA.

As a result, companies are increasingly operating overseas production bases to ensure smooth supply and distribution of K-Food. Daesang, which operates the kimchi brand ‘JonggaJip,’ completed a large-scale kimchi factory near Los Angeles, USA, in March. The factory covers an area of 10,000 square meters (3,000 pyeong) and is equipped with manufacturing lines capable of producing 2,000 tons of kimchi annually, as well as raw material warehouses. Nongshim also established a second factory adjacent to its existing LA plant in April, covering 26,800 square meters (8,100 pyeong). Nongshim’s new factory, capable of producing 350 million ramen annually, aims to accelerate local market penetration. Pulmuone also set up the world’s largest tofu factory based on a single plant in Beijing, China, in April.

Although K-Food continues to expand its territory day by day, voices are emerging that to maintain smooth sailing, it is necessary to actively discover the next generation of K-Food and invest in related research and development. Alternative meat, which companies such as CJ CheilJedang, Shinsegae Food, and Pulmuone are expanding into, is a representative example. According to GlobalData, the global plant-based alternative meat market, which was $4.218 billion in 2016, grew to $5.013 billion in 2018 and $6.071 billion in 2020, and is expected to reach about $11.033 billion by 2025.