Cracking American Tastes with a Single Roll of Gimbap... Advancing into Local Markets [K-Food Captivating the World]②

K-Food Penetrates US Daily Life
Costco's K-Food Sells Like Hotcakes
Jan-Aug Rice Processed Food Exports to US Up 60%

"Last year, the frozen gimbap that caused a sold-out situation at the organic grocery store 'Trader Joe's' in the United States has now secured its place by being regularly sold at major general supermarkets such as Costco. It seems to have penetrated the daily lives of Americans beyond a fleeting boom. K-food, represented by frozen gimbap in the U.S., is expanding its territory from existing kimchi and ramen to various frozen foods. In other words, the range of attack weapons has diversified." (Kim Minho, Head of Korea Agro-Fisheries & Food Trade Corporation (aT) Los Angeles Office)

K-food is rapidly penetrating the American food market. Frozen gimbap continues to enjoy popularity in the U.S. and leads the K-food boom, while interest in Korean food is spreading to jajangmyeon, stir-fried udon, frozen dumplings and fried rice, samgyetang, aloe drinks, and more.

The exterior view of Costco located in Orange County, USA, visited on the 10th of last month (local time).

On the 10th of last month (local time), I visited Costco located in Orange County near Los Angeles (LA), USA. Costco is the most representative membership warehouse discount store operating about 570 stores in the U.S. It is the third-largest retailer in market share after Walmart and Kroger.

Costco, which is a global membership store, can also be used with membership cards issued in Korea. Upon entering the store and moving to the corner stacked with various liquor boxes, the first thing that caught my eye was Korean fruit soju. These products are produced in Korea and exported to the U.S. Watermelon, mango, lychee, and peach soju, two bottles each totaling eight bottles, were being sold for $21.99 (about 29,500 KRW).

On the 10th of last month (local time), Korean fruit soju and jajangmyeon were being sold at a Costco store located in Orange County, USA.

In the snack corner, shrimp chips, a popular product at Costco in the U.S., were being sold. These are products exported from Korea. Park Jesi, CEO of Sokusa, which supplies shrimp chips to Costco, explained, "Costco decides whether to list products considering price, taste, ingredients, and consumer awareness, so it is a highly trusted distribution channel among consumers." He added, "Having a supply record with Costco makes it easier to enter other supermarkets as well as markets in other countries where Costco has expanded." Costco, which distributes various Korean foods, is playing the role of a vanguard introducing K-food to local Americans.

On the 10th of last month (local time), Korean fruit soju and jajangmyeon were being sold at a Costco store located in Orange County, USA.

Even while moving to the frozen food sales area, K-food could be easily found throughout the store. Ready meals (HMR) such as jajangmyeon and stir-fried udon are products where noodles and sauces are imported separately from Korea and then packaged together in the U.S. The area with the highest concentration of K-food in Costco is, of course, the frozen food corner. About ten products, including various types of frozen gimbap, octopus fried rice, and frozen dumplings, are displayed.

The popularity of K-food listed at Costco is also confirmed by export performance. The export amount of rice-processed foods, including instant rice, frozen rice, and tteokbokki, to the U.S. from January to August this year was $110.08 million, an increase of 59.3% compared to the same period last year ($69.12 million). The product category with the highest export amount is snacks, with $180.67 million exported up to August this year, a 38.0% increase compared to the previous year. Seaweed, ranked second in export amount, increased by 29.6%, and ramen, ranked third, increased by 61.4%. In addition, exports of other sauce products, including ramen soup, Buldak sauce, and franchise store sauces, rose from $22.55 million in January-August last year to $29.24 million this year, recording an increase rate of about 30%. Thanks to the strong exports of these major products, agricultural, forestry, and livestock food exports to the U.S. surged by 22.8% to $1.02286 billion compared to last year. Including seafood, agricultural, forestry, and fishery food exports increased by 20.6% to $1.34818 billion.

◆ US MZ Generation Traveling 10 Hours to See Korean Idols and Enjoy K-food = The strong performance of K-food in the U.S. is greatly benefiting from the popularity of K-content among the MZ generation (Millennials + Gen Z). A representative place is 'Source Mall,' which opened in Buena Park in 2017. Covering an area of 55,500 square meters, Source Mall offers watching movies at CGV, taking photos at Life’s Four Cuts photo booths, and enjoying Korean-style hot dogs from Myeongrang Hot Dog, Miltop, Old Ferry Donut, as well as samgyeopsal and chicken. Especially, the 'D’Festa' event, where you can purchase K-pop goods and meet Korean idol groups in person, is held. This is why Source Mall is called a K-pop sanctuary among the MZ generation near LA.

On the 10th of last month (local time), visitors at Source Mall located in Buena Park, USA, are waiting to see a Korean idol group.

At the D’Festa event hall at Source Mall visited last month, about 200 MZ generation people were lined up from the entrance. They were crowds gathered to see the Korean idol group visiting D’Festa. Taylor (22), whom I met that day, said she came to Source Mall from Utah, an 11-hour drive, to see the idol group (G)I-DLE in person. Taylor said, "I heard that I can see (G)I-DLE entering the D’Festa event hall, so I have been waiting for hours with two cousins," adding, "I occasionally go to Korean restaurants, but there are many restaurants selling various K-foods at Source Mall, so I plan to try them this time."

aT is also actively targeting the MZ generation to expand K-food demand in the U.S. Since starting the first generation in 2021, it has organized and operated 'K-food Supporters,' promotional ambassadors, every year. Selected supporters are provided with gift boxes of Korean food products consisting of ramen, instant rice, tteokbokki, candies, snacks, and beverages to give them experience with Korean food and encourage them to create voluntary promotional content through their social networking services (SNS). So far, 6,691 people have applied as supporters, and a total of 340 K-food supporters have been secured. This year, aT plans to produce 200 promotional boxes containing 15 to 18 types of Korean food products, including beverages, snacks, ramen, and kimchi, to distribute to the 4th generation supporters.

Director Kim emphasized, "Currently, K-food is entering the local market from the existing Korean-centered market through Asian and Hispanic markets. Korean food in the U.S. is recognized as a health food based on fermentation, and interest in Korea is growing through Korean dramas and movies, which overall raises the brand value of Korea." He added, "There is a favorable attitude toward K-food, and demand is increasing. The recent rapid growth in K-food exports to the U.S. is expected to continue for the time being."