Increase in Packaged Kimchi Sales During Kimjang Season at Major Large Mart
72% of Consumers Say They Do Not Make Kimjang
Major Marts and Convenience Stores Begin Discounts on Packaged Kimchi
As the kimchi-making season officially begins, sales of packaged kimchi products have increased at major large-scale supermarkets. This is attributed to the rising burden of kimchi-making costs due to high inflation and the increase in small households such as single-person households, leading to a rise in so-called 'Gimpo-jok' who give up making kimchi.
According to the distribution industry on the 14th, Emart's sales of packaged kimchi from September 1 to November 12 increased by 3.7% compared to the same period last year. At Homeplus, sales of packaged kimchi last month rose by 25% year-on-year, and at Lotte Mart, the sales growth rate of refrigerated kimchi products from the 1st to the 12th of this month was about 15% compared to the same period last year.
The increase in sales of packaged kimchi at large supermarkets ahead of the kimchi-making season is interpreted as an effect of the growing number of households that do not make kimchi. According to Homeplus, sales of the largest 10kg packaged kimchi among the products sold surged 18 times compared to last year. This indicates that consumers purchased large quantities of kimchi in advance for winter consumption.
Convenience stores, which are more accessible than large supermarkets and frequently visited by single-person households, are also seeing an increase in kimchi sales during the kimchi-making season. Convenience store CU has held an annual kimchi-making kimchi promotional event, with year-on-year sales growth rates of ▲60.6% in 2020 ▲83.7% in 2021 ▲113.5% in 2022 ▲46.6% in 2023, showing steady growth every year.
The background for the increase in 'Gimpo-jok' who give up making kimchi and buy it instead is mainly the sharp rise in the prices of kimchi-making ingredients, including napa cabbage, which surged last fall. According to the Korea Agro-Fisheries & Food Trade Corporation (aT)'s Agricultural Products Distribution Information (KAMIS), as of the 13th, the price of one head of napa cabbage was 3,693 won. Although this is a stabilized level compared to nearly 10,000 won per head at the end of September, it remains higher than the same period last year (2,680 won) and the average year (3,552 won). The price of napa cabbage surged due to reduced shipments from production areas as the summer heat lasted until late this year.
The increase in small households also appears to have had an impact. According to a survey conducted by the agricultural subscription platform Monthly Nonghyup Matseon, operated by Nonghyup, from the 18th to the 23rd of last month targeting about 500 members, 72% of respondents said they would not make kimchi this year. The main reasons for not making kimchi were ▲inconvenience (47.2%) ▲decrease in family members (37.6%) ▲lack of time (33.1%) ▲rise in kimchi-making ingredient prices (30.8%). Among households that gave up making kimchi, 88.7% responded that they plan to purchase packaged kimchi.
Distribution companies are making every effort to attract the 'Gimpo-jok' during the kimchi-making season by holding packaged kimchi discount events. Emart is selling CJ Bibigo sliced napa cabbage kimchi and young radish kimchi at 9,900 won, discounted by 5,000 won from the regular price of 14,900 won until the 14th. Jongga young radish kimchi, young radish kimchi, and aged kimchi are sold at 12,900 won, discounted by 3,000 won from the regular price of 15,900 won. Sanji Yangban diced radish kimchi (400g) is offered as a 1+1 deal for 5,900 won.
Homeplus is also selling 'Simplus 100% Domestic Agricultural Products Whole Kimchi (3.5kg)' at 15,900 won until the 20th, and 'Yesodam, Jongga, Bibigo Kimchi' (6 types, cross-purchase available) starting from 14,900 won with a 50% discount when purchasing two or more.
The convenience store industry is also holding discount events for the kimchi-making season. CU is running a kimchi-making kimchi budget purchase promotion until the 31st of next month, offering 17 types of kimchi products around 1kg at up to 21% off the regular price. Until December 20, free home delivery service is also provided for nine types of large-sized kimchi products. Emart24 is selling packaged kimchi products such as Peacock Chosun Hotel Kimchi until the 16th of next month. Products can be received via free delivery, app reservation pickup, or in-store pickup, with a 20% discount coupon offered to app reservation pickup customers.
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