[Luxury World] "Even Kim Jong-un Tasted It"... The Era of 'Geum Baechu', Hotel Kimchi Sells Like Hotcakes

Growing Interest in Premium Kimchi Made with Top-Quality Ingredients
Walkerhill Hotel Sales Increase 141% Compared to Last Year
Kimjang Culture Sees Reduced Consumption but Rising Demand for Luxury Kimchi

Recently, the Netflix series 'Black and White Chef' has gained popularity, sparking increased interest in dishes created by high-end restaurant chefs, which has brought attention to hotel kimchi. Especially this year, due to the prolonged rainy season and heatwaves causing napa cabbage prices to soar, the cost burden of making kimchi has increased, leading to a surge in sales of expensive hotel kimchi containing secret recipes from culinary masters or Michelin-starred chefs.

According to the distribution industry on the 13th, 'Walkerhill Hotel Kimchi,' launched by Walkerhill Hotel, showed a 141% growth from January to September this year compared to the same period last year. Expanding sales channels from home shopping to online platforms was a key factor.

Paradise Hotel & Resort introduced its premium fermented kimchi for the first time on the 10th.
[Photo by Paradise Hotel & Resort]

Chosun Hotel Kimchi has recorded double-digit sales growth every year. During the COVID-19 period, online orders increased, resulting in a sales growth rate of over 60% in 2021. Although growth rates vary depending on napa cabbage supply, the market size has been expanding with double-digit growth annually.

Among luxury hotels, Chosun Hotel, Walkerhill Hotel, and Lotte Hotel have introduced kimchi under their own brands. This is to diversify sales beyond room sales into the food business. Since room sales were severely impacted by COVID-19, they defended revenue through the food business.

On the 10th, Paradise Hotel entered the kimchi market as a latecomer. Their product is a premium whole napa cabbage kimchi containing the secret recipe of a fine dining master chef, utilizing the recipe of the head chef of 'Saerasae,' a Korean fine dining restaurant within 'Art Paradiso,' the luxury boutique hotel at Paradise City.

The domestic packaged kimchi market is led by Daesang Jongga and CJ CheilJedang, followed by Ourhome, Pulmuone, and small to medium kimchi companies. Since the first and second-ranked companies dominate the kimchi market, latecomers are targeting niche markets focused on specific customer segments.

The main strategy of the hotel industry is to position products as premium and luxury by utilizing chefs from fine dining establishments. Chefs are known to be involved in the entire process, including ingredient storage, preparation, and mixing. As premium products show rapid growth, food companies are also launching premium products to expand their market share. For example, Ourhome launched the premium line 'Gussi Banga,' offering kimchi made with various ingredients such as hairtail fish kimchi and green leaf kimchi.

The first hotel to introduce hotel-branded kimchi was Walkerhill Hotel. Walkerhill Hotel established a kimchi research institute in 1989 and began selling 'Walkerhill SUPEX Kimchi' in 1997. It reproduces flavors passed down from the late Joseon period in Seoul and Gyeonggi regions, characterized by a clean taste that is not overly spicy. This kimchi has been served at national events such as the inter-Korean summits, Davos Forum, G20 summits, and Blue House banquets. Walkerhill Hotel also sells 'Walkerhill Hotel Kimchi,' a relatively more affordable product than SUPEX Kimchi, since 2018.

Following that, Chosun Hotel started selling kimchi in 2002. After buffet customers frequently requested to purchase kimchi, full-scale sales began in 2004. Chosun Hotel has rapidly increased sales by utilizing Shinsegae Group's distribution network and currently sells about 20 different products. Lotte Hotel launched its first kimchi sales in August last year, leveraging the know-how of its Korean restaurant 'Mugunghwa.' It uses its own mall 'eShop' and Lotte Group's distribution network, accepting orders once a week and delivering in bulk.

The premium kimchi market size is expected to grow further. First, the packaged kimchi market is rapidly expanding. According to Nielsen data, the domestic packaged kimchi market size was approximately 656 billion KRW last year, a 22% increase from 537 billion KRW in 2021. The trend of prioritizing health has spread, leading to a preference for better-quality kimchi instead of eating less kimchi, which is one reason for the expected growth of the premium kimchi market. A hotel industry official explained, "The concept of making kimchi in large quantities for consumption may disappear in the future," adding, "As daily consumption decreases, it is highly likely to shift toward premium ingredients or gourmet food."