Temperature Drops: The Return of the Fish Cake Season

Sajo Daelim Leads with 32.8%... CJ and Dongwon Follow
Fish Processed Products Market Stagnates Due to Rising Raw Material Costs
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[Asia Economy Reporter Eunmo Koo] As temperatures have recently dropped sharply, the demand for fish cakes has increased. Sajodaerim, which owns leading brands such as Busan Fish Cake and Daerimseon, continues to firmly hold the throne, while competition among rival companies is expected to intensify during the peak season.

According to market research firm Nielsen Korea on the 6th, Sajodaerim had the highest domestic sales share among fish meat processed product manufacturers last year, with 32.5%. Sajodaerim appears to have secured a solid position in the domestic fish meat processed product market. Although Sajodaerim's market share slightly decreased from around 34.5% in 2018 to 32.5% last year, it still exceeds 30%, firmly maintaining its leading position. This year, based on the first half, it holds the top spot with a 32.8% market share.

CJ CheilJedang, which has established a duopoly with Sajodaerim, is aiming for the top spot with a 24.0% market share, followed by Dongwon F&B (9.7%), Hanseong Enterprise (8.9%), and store brands (5.3%). Notably, the strong performance of Dongwon F&B, ranked third, stands out. Dongwon F&B has gradually increased its market share from about 9.4% in 2018 to 10.3% in the first half of this year, achieving double-digit market share.

By brand, Sajodaerim and CJ CheilJedang's brands occupy the top ranks. CJ CheilJedang's Samho Fish Cake recorded the highest sales of 55.9 billion KRW with a market share of 10.7%, followed by Sajodaerim's Busan Fish Cake (48.1 billion KRW), Daerimseon (35.6 billion KRW), Kravia (28.9 billion KRW), and CJ CheilJedang's Busan Anshim Fish Cake (27.1 billion KRW) in the top five sales rankings. Additionally, Samjin Food's Samjin Fish Cake and Hanseong Enterprise's Kreamy also ranked, with Samjin Fish Cake showing a sharp rise, increasing sales by 155.2% year-on-year to 23.1 billion KRW last year.

Among fish meat processed products, fish cakes still hold the largest share. The proportion of fish cakes within fish meat processed products was about 58.7% in 2018, surpassed 60% in 2019 at 60.3%, and steadily increased to 62.1% in 2020 and 62.4% in 2021, reaching 62.9% in the first half of this year. Meanwhile, the share of imitation crab sticks decreased by 4.2 percentage points from 36.8% to 32.6% during the same period.

The overall market shows a somewhat stagnant trend. Last year, sales of fish meat processed products were 520.3 billion KRW, down 0.8% from 524.9 billion KRW the previous year, and this year, sales in the first half were 252 billion KRW, slightly down 1.4% year-on-year. Fish cakes, mainly consumed as side dishes, have grown in premium and bakery fish cake segments, but recently, price increases in raw fish meat (pollock meat) and labor costs have affected product prices, causing a slowdown.

However, there is ample potential for a rebound. Since fish cakes are typically eaten with broth that raises body temperature, demand for fish cake soup and street fish cakes increases in the colder fourth quarter, which shows the highest sales growth rate. The industry is also responding by launching new products during this peak season, such as Sajodaerim's recent release of the premium skewer bar ‘Takoe Kkochida.’ Additionally, Samjin Fish Cake launched a premium snack fish cake luxury bar last month using various ingredients like sausage, shrimp, and cheddar cheese, and Ourhome introduced skewer fish cakes recreating the atmosphere of street food stalls.