Penetrating the US, Europe, and Southeast Asia
Record-High Exports Even for 'Supermarket Bread'
"Continuous Recipe Development... Backed by the K-Wave"
Domestic bakery companies have been accelerating their efforts to target overseas markets since the beginning of the year. Bread, which was introduced to Korea in the 19th century by foreign missionaries crossing the sea to a distant foreign land, has recently emerged as an export powerhouse beyond borders with Korean-style recipes.
Paris Baguette to Open 12,000 Overseas Stores by 2030
According to the food industry on the 13th, SPC's Paris Baguette operates about 630 stores in a total of 14 countries including the United States, Canada, France, the United Kingdom, China, Singapore, Malaysia, Indonesia, and Vietnam. The goal is to reach 12,000 stores by 2030.
The United States is particularly notable for its growth. At the end of last year, it successfully opened its 200th store in North America in Illinois. It had been 19 years since entering the U.S. market in 2005. Paris Baguette, which started its franchise business in 2015, has been rapidly growing, doubling its size shortly after opening its 100th store in January 2023. An SPC official said, "We plan to increase the number of stores in North America to 1,000 by 2030."
To meet the increasing demand for K-bread in the U.S., a local factory is also planned. SPC Group recently selected Burleson, Texas, as a candidate site for the factory and is coordinating investment plans. The factory construction cost is $160 million (approximately 234.6 billion KRW), and the factory site covers 150,000 square meters (about 45,375 pyeong). With the establishment of the factory, Paris Baguette is reportedly seeking local partners to open franchises extending beyond North America to South America.
Paris Baguette is also showing strong growth in Southeast Asia. Among the 14 countries where it has expanded overseas, nine are in Southeast Asia, the largest number. In October last year alone, three countries?Thailand, Brunei, and Laos?were added. A Paris Baguette official said, "Paris Baguette operates large stores in Southeast Asia, spreading a premium bakery cafe culture and leading local trends."
Earlier this year, a ‘Global Halal Certified Bakery Factory’ began full-scale operations in Johor Bahru, Malaysia, targeting the halal market. This enables Paris Baguette to supply products not only in Southeast Asia but also to Islamic countries in the Middle East and Africa.
Recently, efforts have also been focused on Europe, the birthplace of bread. In November last year, the first European franchise store opened in London, UK. The plan is to open more than 100 stores in the UK alone by 2030.
Longtime Runner-up Tous Les Jours as a 'Premium Bakery'
Tous Les Jours is showing momentum comparable to Paris Baguette. Tous Les Jours has expanded into North America, including the U.S. and Canada, as well as various Asian countries such as Indonesia, Vietnam, Mongolia, and Cambodia, currently operating about 560 global stores. In the U.S., Tous Les Jours opened its 100th store in 2023 and aims to reach 1,000 stores by 2030.
With explosive demand in the U.S., a bread factory is being built in Gainesville, Hall County, Georgia. CJ Foodville plans to invest over $54 million to construct a production plant on approximately 90,000 square meters of land.
In Southeast Asia, Tous Les Jours is recognized as a premium bakery and has established a significant presence. After entering Indonesia in 2011, it established a production factory in the Bekasi area in 2019 and became the first domestic bakery company to obtain halal certification in Indonesia. Recently, it also announced its entry into Malaysia through a master franchise. A Tous Les Jours official said, "The Malaysian market is adjacent to Indonesia, where Tous Les Jours is on a successful path, and is expected to generate strong synergy effects in various aspects such as business operations and logistics."
Not Just Bakeries... K-Bread Penetrates Supermarkets Worldwide
According to the Korea Confectionery Association's 'History of Korean Bread and Confectionery Culture,' bread was first introduced to Korea in the 1880s by American missionaries Underwood and Appenzeller. This means the history of bread in Korea is less than 150 years old. Nonetheless, it is remarkable that bread made by Koreans using Korean-style recipes is being re-exported to Western countries.
Besides direct overseas expansion or franchise methods, K-bread's penetration is occurring worldwide through the export of so-called 'supermarket bread' made domestically. In fact, last year, K-bakery achieved record-high export figures. According to the Korea Customs Service, bakery exports from January to November last year reached $404 million (approximately 587.1 billion KRW), marking the highest performance ever. This is an 8.3% increase compared to the same period last year.
Bakery export items include snacks, bread, and ingredients, with pies and cakes among the fastest-growing products. Bread exports increased by 18.9% compared to the previous year. The variety of popular bakery types is also diversifying. Notably, Korean-style products such as street snacks like Bungeoppang and Hoppang, as well as Yakgwa, which is at the center of the 'Halmaennial (Halme + Millennial)' craze, have contributed to exports. An industry official said, "Korean bakeries are rapidly expanding their presence, supported by continuous product development, localization efforts, and the global popularity of popular culture such as dramas, movies, and music."
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