Kimchi Forum

CJ and Pulmuone are striving to reclaim the top spot by launching an intense marketing battle to surpass Daesang's Jongga Kimchi.

jongga Kimchi

Jongga Kimchi Accounts for Over Half of Korea's Kimchi Exports (56%)

Daesang's Jongga brand is responsible for more than half (56%) of Korea's kimchi exports. Notably, exports to North America, including the United States, have grown significantly. Exports to the U.S. reached 6,600 tons, a 20% increase compared to the previous year, while exports to Canada rose by 34% to 900 tons during the same period. 

Daesang has been aggressively expanding its presence in the U.S. market, building a kimchi factory near City of Industry, Los Angeles, in 2022, with an annual production capacity of approximately 2,000 tons. The company tailors its products to local dietary preferences, offering gluten-free and vegan options such as vegan kimchi, white kimchi, beet kimchi, and cabbage kimchi. For customers unfamiliar with spicy flavors, they also produce "mild kimchi." Additionally, the company offers both traditional kimchi made with seafood-based seasoning and versions without it. 

Beyond the U.S., Daesang is expanding its kimchi production capabilities in Vietnam and Europe. In the first half of this year, it added kimchi manufacturing processes to its factories in Hai Duong and Hung Yen in northern Vietnam, which previously lacked production lines for kimchi. In Europe, the company's Kraków factory in Poland is scheduled for completion in the first half of next year, with plans to produce over 3,000 tons of kimchi annually by 2030. 

Industry experts predict that Jongga's kimchi exports will continue to grow steadily, contributing to Daesang's rising revenues. According to FnGuide, Daesang's projected sales for this year are estimated at 4.2912 trillion KRW, a 4% increase from the previous year. An industry insider commented, "Currently, Jongga faces virtually no competition in kimchi exports." 

Flying Off the Shelves in Japan, the U.S., and the Netherlands" – Kimchi Export Volume Hits Record High Last Year

Last year, both the export volume and value of kimchi reached record-breaking levels. As kimchi, a flagship K-food item and a recognized vegan and fermented product, gains global awareness, its growth has been remarkable.

According to the Ministry of Agriculture, Food and Rural Affairs on the 12th, the export volume of kimchi in the previous year was 47,100 tons, an increase of 6.9% compared to the same period the year before.

Kimchi export volumes rose from 39,700 tons in 2020 to 42,500 tons in 2021, marking a 7.1% increase, then slightly declined to 41,100 tons in 2022. However, the figure rebounded in 2023 to 44,000 tons and continued to grow for two consecutive years through last year.

The increase in export volume also pushed up export value, which grew by 5.2% year-on-year to $163.6 million (approximately 240 billion KRW), setting a new record.

Japan was the largest importer of Korean kimchi last year, followed by the United States and the Netherlands in second and third places. The export volumes to the U.S. and the Netherlands rose by 25.2% and 28.9%, respectively, compared to the previous year.

Canada ranked fourth, with a 61.5% growth in export volume, while exports to Australia, the fifth-largest importer, increased by 37.2%.

Kimchi was previously sold primarily in the ethnic market or Asian grocery stores, but years of market expansion efforts by companies and government support have expanded the number of export destinations to over 90 countries.

An official from the Ministry of Agriculture, Food and Rural Affairs stated, "In the U.S., the presence of kimchi in local distributors such as Costco and Walmart has grown, and the introduction of various new kimchi products has supported stable year-round growth. In Europe, the rising popularity of Korean restaurants and the adoption of kimchi in local recipes have driven exports to the Netherlands, the U.K., France, and other countries."

Domestic exporters plan to actively develop new markets this year by creating products tailored to the demands of different countries and strengthening marketing efforts.

Daesang Corporation aims to diversify sales channels for Jongga Kimchi in export markets and expand its product lineup to boost revenue. Once the Poland-based kimchi factory is completed in the second half of this year, the company plans to aggressively target the European market.

CJ CheilJedang, on the other hand, plans to continue expanding its presence in large local distribution channels overseas and increase brand awareness by collaborating with various K-content projects.

The export value of Korean kimchi reached a record high of $166 million in 2021, up from $79 million in 2016, marking an increase of approximately 103% over six years. According to Korea Customs Service trade statistics, as of August 2022, the export value of kimchi stood at $99 million.

This growth in the export of packaged kimchi is being driven by Daesang Corporation, a leading packaged kimchi manufacturer in South Korea. Daesang's kimchi export value surged from $29 million in 2016 to $67 million in 2021, representing an increase of over 131%. By August 2022, the company had achieved exports worth approximately $46.2 million. As of August 2022, Daesang accounted for 60% of South Korea's total kimchi export value.



In fact, Jongga Kimchi is the most recognized kimchi brand among Koreans in South Korea.