Baeksansu Surpasses 1.1 Trillion KRW in Cumulative Sales Over 10 Years of New Factory Operation in China
Aiming for 20% Annual Sales Growth by 2030 with "40-Year Natural Purification Period"
Targeting Increase in Overseas Sales Share from 25% to 30%... Advancing as a Global Premium Bottled Water Brand
The saying "Ubocheolli," which means "a cow's slow steps can cover a thousand li," embodies Nongshim's philosophy. Even if the journey is slow, we will steadfastly pursue our goals to the end, and with this ubocheolli spirit, we will continue to walk the challenging path of the bottled water business with unwavering determination."
Marking the 10th anniversary of the operation of its new Baeksansu factory, Nongshim has announced its ambition to become Korea's leading premium bottled water brand. Nongshim stated that it has achieved cumulative sales of over 1 trillion KRW through steady growth over the past 12 years. Going forward, the company is determined to make a second leap by leveraging Baeksansu's unique qualities?its pristine natural source in Baekdusan and its "40-year natural purification period"?to be recognized as a bottled water brand not only in Korea but also worldwide.
Baeksansu Surpasses 1 Trillion KRW in Cumulative Sales... Leading Market Expansion Amid Slow-Aging Trend
At a press conference held on June 16 at the Baeksansu factory in Idobaekha, Yanbian Korean Autonomous Prefecture, Jilin Province, China, Nongshim presented the achievements of the past 10 years since the new factory began operations in 2015 and outlined its future rebranding strategy.
First launched in December 2012, Nongshim's Baeksansu began with sales of approximately 24 billion KRW the following year and has steadily increased its sales each year. In particular, the new factory completed in 2015 has accelerated this growth. In 2019, annual sales exceeded 100 billion KRW for the first time, establishing Baeksansu as a "100 billion brand," and last year, sales grew to 112 billion KRW, surpassing a cumulative sales total of 1.1 trillion KRW in about 12 years since launch.
Nongshim plans to continue expanding Baeksansu's sales volume and market share, as both domestic and international bottled water markets continue to grow. The company has set a specific goal to increase annual sales by about 20% by 2030. Kim Sangheon, Head of Product Marketing at Nongshim, said, "Last year, the domestic bottled water market exceeded 3 trillion KRW, setting a new record. Amid fierce competition among numerous brands to expand their share of the bottled water market, Baeksansu aims to create more opportunities by leveraging the uniqueness of its water source."
Nongshim assessed that, although competition is intensifying with the continuous entry of new businesses and brands into the domestic bottled water market, there is still significant growth potential. According to the Ministry of Environment, as of February last year, there were 59 bottled water manufacturers and more than 200 brands in Korea. Kim explained, "Many products use multiple brands for the same water source, or a single brand for multiple sources. Baeksansu, however, produces a single-brand product from a single source, which sets it apart in terms of quality from other products."
A panoramic view of the Baeksansu factory located in Idobaekha, Ando County, the Korean Autonomous Prefecture of Jilin Province, China.
Above all, the company emphasized that there is ample room for growth, as domestic bottled water consumption remains low compared to advanced countries. Kim stated, "Korea's per capita annual bottled water consumption is 62 liters, while China, where the Baeksansu factory is located, is at 30 liters?half of Korea's level. This is still less than half the consumption in France (142 liters), Germany (148 liters), and the United States (165 liters), which is why we believe there is plenty of room for demand to grow in the future." He added, "Recently, growing interest in health issues such as slow aging is another positive factor for growth prospects."
Top-Rated '5A' Baeksansu... Tapping into China's Special Demand
Nongshim plans to strengthen its efforts in both domestic and overseas markets to drive the growth of the Baeksansu brand. Kim said, "Currently, about 25% of Baeksansu's total sales come from China, and our goal is to increase this to 30%. Since Baeksansu sources its water from Baekdusan, one of the world's three major water sources, we plan to actively target the Chinese bottled water market, which is estimated at about 34 trillion KRW, by leveraging our quality advantage."
A view of Naeducheon in Ando County, Korean Autonomous Prefecture, Jilin Province, China, the source of Baeksansu water.
The core strategy for expanding Baeksansu's overseas business is to tap into special demand in China. Since 2022, Nongshim has been steadily pursuing special sales, such as launching a 5-liter product exclusively for the Chinese market, to boost local Baeksansu sales. In particular, after Baeksansu received the highest '5A' rating in a comprehensive evaluation of water sources?including environment, flow, and quality?by the China Natural Mineral Water Committee in 2021, the company signed an OEM supply contract with local distributors for about 100 million bottles (about 50,000 tons) annually, with production starting this month.
Additionally, the company is working to secure quality credibility by collaborating with the local government agency, the Mineral Water Administration, to develop various sales channels and is accelerating local business expansion through marketing strategies such as premium image-based merchandise for Baeksansu.
"Good Water Takes Time" Strengthening 'Water Age' Marketing with 40-Year Natural Filtration
Nongshim plans to differentiate Baeksansu from competing products by highlighting its exceptionally long natural purification period. Starting this year, Baeksansu is running a campaign in the domestic market emphasizing the "40-year natural purification period" from Cheonji Pond of Baekdusan to the Naeducheon water source. The natural purification period refers to the time it takes for rainwater to be absorbed into the ground and pass through underground bedrock. The longer this process, the more purified the water becomes and the richer it is in natural minerals, which significantly affects bottled water quality. The company's strategy is to focus on "water age" marketing by emphasizing that good water takes time.
According to a study conducted last year by Dr. Yoon Yunyeol's team at the Korea Institute of Geoscience and Mineral Resources, Baeksansu is water that has flowed over 45 kilometers through underground bedrock for about 40 years, representing the longest natural purification period among domestic and international bottled waters. Dr. Yoon explained, "Baeksansu's mineral composition?including silica and magnesium?is similar to that of other drinking waters from domestic volcanic aquifers, but the concentrations are higher. This is due to the prolonged interaction between water and rock during its long residence time."
Baeksansu is made from Naeducheon, the water source naturally purified for 40 years, originating from Cheonji Pond of Baekdusan.
Baeksansu is water that has filtered through volcanic bedrock formed over millions of years by rain and snow falling on Baekdusan, flowing for about 40 years and removing impurities while becoming rich in functional minerals such as silica and germanium, which are beneficial to the human body. The volcanic basalt of Baekdusan, with its varied pore sizes, acts as a massive natural filter with excellent permeability. Nongshim emphasizes that Baeksansu's total mineral content is 65.5 mg/L and its silica content is 40.6 mg/L?about 1.5 to 3 times higher than competing products.
Kim stated, "Baeksansu is water that flows 45 kilometers through the heart of Baekdusan and springs up in Naeducheon by the power of nature. This is why Nongshim describes Baeksansu as 'water created by the nature and time of Baekdusan.'" He added, "We are currently running a campaign that emphasizes the longer water is in contact with nature, the fresher and healthier it is. We aim to actively promote Baeksansu's value by presenting the natural purification period as a new standard for choosing bottled water." Nongshim also plans to actively target younger consumers by linking with health content such as marathons, mainly through major social networking services (SNS).
Shim Gyucheol, Head of Marketing at Nongshim, said, "Since water is sold in its natural state, there is very little that manufacturers can do, and as a food product that is often purchased out of habit, it is difficult to change the rankings once they are established. However, Nongshim's Baeksansu business began with the philosophy of 'wishing for health and longevity through water,' and we are confident that, based on our outstanding water source, Baeksansu is ideal water with balanced minerals. Even if our progress is slow, we are committed to seeing it through to the end."
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