Kimchi Sets New Export Record Abroad... Largest Trade Partner Japan Sees 'Negative Growth'

Kimchi Exports Reach $137.39 Million by October
Poised to Set New Record for Second Consecutive Year
US and EU Demand Drives Growth, While Japan Declines Amid Local Competition
Market Diversification and Local Production Are Keys to Sustain

Kimchi exports have continued to grow steadily alongside the global spread of K-food. While demand is expanding, particularly in the United States and Europe, Japan-the largest market-has seen a clear decline due to competition from local companies and exchange rate factors. Despite the increase in exports, concerns have been raised about market concentration and the potential for slowing growth. To ensure sustainable expansion, it is expected that strengthening localized products, expanding distribution networks, and responding to regulations will be necessary.

According to export-import trade statistics from the Korea Customs Service on November 24, this year's kimchi export value reached 137.39 million dollars (approximately 202 billion won) as of October, a 2.0% increase compared to the same period last year (134.68 million dollars). As the scale of kimchi exports has increased steadily each year, it is expected that this year will once again surpass last year's record high of 163.57 million dollars (about 241 billion won).

Recently, the United States and Europe have been driving growth in the kimchi export market. In particular, the United States has shown rapid growth, with export value increasing by more than 60% over the past two years, and this year's trend is similar to last year. The surge in kimchi exports to the United States is underpinned by the popularity of K-content. As interest in Korean cuisine has grown due to K-content, major companies such as CJ CheilJedang’s Bibigo and Daesang’s Jongga have established local production and processing bases, and have increased accessibility by entering large retail channels such as Costco and Walmart, which has led to increased demand. In addition, expanding the product portfolio with localized products, such as those with milder flavors, has also contributed to this growth.

Although Europe is not as large a market as the United States, it is attracting attention for its growth rate. The reasons for kimchi’s growth in Europe are subtly different from those in the United States. Fermented foods such as sauerkraut are already familiar in Europe, and kimchi is being introduced as a new option, providing more choices for consumers who prioritize gut health.

Furthermore, as meat consumption declines, the fact that kimchi, as a vegetable-based ingredient, is increasingly used in vegan and vegetarian restaurants, as well as in sandwich and burger chains, is considered a strength. While Europe has strict regulations and labeling standards and diverse preferences by country, making explosive short-term growth difficult, there is growing belief that as kimchi becomes more firmly positioned as a healthy fermented food, a stable demand base is likely to form in the long term.

In contrast, the Japanese market, which is the largest export destination, is experiencing a decline. Kimchi exports to Japan, which stood at 80.12 million dollars (about 120 billion won) in 2021, dropped by more than 30% over three years to 54.02 million dollars (about 80 billion won) last year, and this year is expected to be similar to last year. The decline in exports to Japan is due to the rise of strong local kimchi (kimuchi) companies. In Japan, local kimchi brands that have adapted taste, texture, and ingredients to local preferences already have robust distribution networks. With the emergence of fusion kimchi products that are sweeter, less spicy, and even include natto, Japanese consumers have less incentive to choose imported kimchi. Additionally, the prolonged depreciation of the yen has led to a general increase in the price of imported foods in Japan, weakening competitiveness, and kimchi is no exception.

In fact, although the scale of kimchi exports has expanded each year, growth has slowed somewhat this year. Currently, kimchi exports are concentrated in Japan, the United States, and some parts of Europe and Southeast Asia, so if the Japanese market falters, overall exports are affected. This is why there are calls for diversification of markets and channels to sustain the growth of kimchi as an export industry.

Specifically, expanding into new markets such as the Middle East and South America, while developing formats (ambient, retort, small packages) tailored to the lifestyle and regulations of each country, is highlighted. In major markets such as the United States and Europe, securing distribution networks through local production and processing, as well as joint ventures and M&A, is expected to become increasingly important. This is because exporting only finished products from Korea makes it difficult to overcome limitations such as logistics costs and lead times.

Yonhap News Agency

The government has also announced plans to more effectively respond to overseas food technical regulations and support the growth of the kimchi industry and export markets, such as by adding the Korean term "kimchi cabbage" to the international standards at the recent Codex Alimentarius Commission meeting. At the 6th "Kimchi Day" ceremony on November 21, Minister of Agriculture, Food and Rural Affairs Song Miryung stated, "Kimchi is not only a traditional food of the Korean people, but has now grown into a global food enjoyed worldwide," adding, "The government will work to help the kimchi industry leap forward as a future export-oriented strategic industry and ensure that K-kimchi secures a solid position as a global food brand."