[Why&Next] Aiming for the Global Semiconductor Market... 450 Trillion Won Food Tech War

From Barista Robots to Healthcare
Advanced Technologies like Cooking Robots and AI Replace Workforce
Third-Generation Retail Owners and Samsung Electronics Expand Investments

#1 When a customer orders through an unmanned kiosk, a robotic arm-shaped machine makes the beverage within one minute and carries it to the pickup counter. It can instantly prepare 21 types of drinks including coffee, latte, and ade. This is the booth-type barista robot "HappyBones" created by Pleto Robotics, a robot barista company headquartered in Daejeon. Currently, about 200 units have been deployed nationwide in rest areas, hospitals, corporations, and coffee specialty stores through partnerships. Kim Jae-jun, Chief Technology Officer at Pleto Robotics, explained, "Due to the 52-hour workweek system and labor regulations, it is difficult to employ staff at rest areas after 8 p.m. The barista robot is not constrained by this and can operate 24 hours, helping to improve store efficiency."

#2 Dttec, a cooking robot specialist company, focuses on robots capable of frying. When ingredients are placed in up to eight frying baskets, the robotic arm handles the entire frying process in oil. This reduces tasks requiring a cook’s hands, minimizing burn risks, and one robot can simultaneously cook multiple items. Some chicken franchise stores reportedly confirmed labor cost savings equivalent to two employees when assuming monthly sales of 100 million KRW.

At the '2024 Food Festa' held on the 3rd at aT Center in Yangjae-dong, Seocho-gu, Seoul, Samsung Welstory's robot barista is serving coffee to visitors.
[Photo by Samsung Welstory]

'Food Tech' Emerging as a Solution to Labor Shortages

Food tech is emerging as a new growth engine in the food industry. Food tech is a compound word of Food and Technology, combining advanced technologies such as artificial intelligence (AI), robotics, and biotechnology (BT) throughout the entire process from food production and distribution to consumption, creating enhanced added value compared to before.

At the '2024 Food Festa,' the largest B2B (business-to-business) food and beverage expo held earlier this month by Samsung Welstory at the aT Center in Yangjae-dong, Seocho-gu, Seoul, cooking robots equipped with food tech were showcased simultaneously. Considering the reality of the service industry where it is increasingly difficult to find employees due to aging populations and economic downturns, the greatest advantage emphasized was operational efficiency through advanced technology.

Jung Hae-rin, CEO of Samsung Welstory, said, "With the labor population decreasing and the ongoing trend of avoiding difficult and strenuous work, the entire food and beverage industry is already suffering from labor shortages, and this problem is likely to worsen. Operational efficiency through food tech is necessary for both related companies and consumers."

At the '2024 Food Festa' held on the 3rd at the aT Center in Yangjae-dong, Seocho-gu, Seoul, a representative from Creo Korea introduced the Wokbot, which automates cooking and cleaning processes.

Reflecting this reality, Samsung Welstory has developed automated cafeteria solutions for group meal clients. From robots that cook and serve heavy and hot foods such as soups, stews, and broths to large stir-fry machines capable of preparing meals for hundreds, they recommend automated equipment tailored to the size and characteristics of workplaces through partnerships with various manufacturers. For food service establishments distributing ingredients, they provide ideas and technology to minimize manual work, replacing 327 types of difficult-to-handle ingredients with a 'one-pack' system.

CJ Freshway also introduced robots and automation equipment at 110 client sites, including corporate cafeterias and food courts, as of the end of last year. This represents about a 140% increase compared to the previous year. The robots include serving robots, patty cooking robots, and wok bots that replace stir-fry cooking, while automation equipment includes cup washing sterilizers, automatic rice dispensers, vegetable cutters, sushi molders, and gimbap machines.

An industry insider said, "Although aging is recognized as a social issue, the income level of major consumer groups is rising, so demand for food and beverage services will not decline. For corporations and food service businesses, leveraging advanced technology-equipped equipment to solve labor shortages will become a necessity rather than a choice."

Global Food Tech Growth Potential Estimated at 40 Trillion KRW... Surpassing the 787 Trillion KRW Global Semiconductor Market

Food tech encompasses not only automation equipment but also plant-based alternative food development, smart farms, unmanned delivery, healthcare, and various other fields. Major countries including the U.S., Europe, China, Japan, and Indonesia are accelerating technology development to improve production efficiency, reduce food waste, and promote health, considering the decrease in food resources due to environmental pollution and abnormal climate while the global population continues to grow.

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) and the Korea Rural Economic Institute, the global food tech market is expected to grow from $272 billion (about 325 trillion KRW) in 2021 to $360 billion (about 470 trillion KRW) by 2025. The U.S. Consumer Technology Association (CTA), which organizes CES, the world’s largest home appliance and IT exhibition, estimates the global food tech market will reach about $342 billion (450 trillion KRW) by 2027. Food tech was named one of the five major technology trends at CES 2022.

Additionally, the Korea Food Tech Council estimates the domestic food tech market size at 600 trillion KRW and the global market at 40 trillion KRW, viewing its growth potential as surpassing the 787 trillion KRW global semiconductor market. Accordingly, second- and third-generation owners and executives from the distribution industry, including Shin Yoo-yeol, Head of Future Growth at Lotte Holdings (Executive Director), Kim Dong-seon, Head of Strategy at Hanwha Galleria (Vice President), Koo Ji-eun, Vice Chairman of Ourhome, and Jeon Byung-woo, Executive Director at Samyang Round Square, visited CES earlier this year to observe the current status and future of the global food tech market.

Increased Investment by Major Domestic Companies Including Samsung Electronics

Investment by major domestic companies in the food tech sector is also expanding. Last year, Samsung Electronics acquired a 14.99% stake in Rainbow Robotics, a robot developer including cooking robots, and signed a call option contract to increase its stake up to 59.94%, opening the possibility of becoming the largest shareholder.

Hanwha Hotels & Resorts changed the name of its food service subsidiary The Tastable to Hanwha Food Tech in February and presented a blueprint to enhance competitiveness in the food and beverage service market by collaborating with Hanwha’s robot specialist affiliate, Hanwha Robotics. Ourhome has also been steadily discovering and collaborating with specialized companies in robotics, food tech, healthcare services, and AI alongside its own technology development. Nongshim invested 10 billion KRW to discover and nurture food tech startups such as cultured meat. Additionally, Samsung Welstory plans to accumulate data on dietary habits and health-related information of its catering clients’ users to recommend personalized meal plans and provide counseling as part of healthcare services.

Lee Ki-won, Chair Professor of the Food Tech Department at Seoul National University and Co-Chairman of the Korea Food Tech Council, said, "As single-person households increase and the era of personalization rapidly advances, the entire process of recommending, cooking, and delivering food tailored to individual lifestyles and preferences is thoroughly shifting to a consumer-centric model. AI and new advanced technologies now enable solutions customized to personalized lives."

He added, "Future food businesses are likely to be led by service companies investing in AI and robotics rather than manufacturers. The distribution and manufacturing sectors will also transform into industries competing overseas through tech-based expertise."