With the Increase of 'Jipbapjok', Kimchi Consumption Diversifies... Specialty Kimchi Gaining Popularity Rapidly

Jongga's 'Pakimchi' Sales Increase by 103% Year-on-Year
CJ CheilJedang's 'Gatkimchi' Sales Also Up 70% Year-on-Year

Source: Retail Distribution POS Data, aTFIS (Food Industry Statistical Information System)

[Asia Economy Reporter Choi Saeng-hye] With the increase in home dining demand, sales of packaged kimchi, a representative home side dish menu, are on the rise. As the kimchi market grows, consumption preferences have also become more segmented. In addition to regular napa cabbage (poggi) kimchi, the demand for specialty kimchis such as gatkimchi and pa-kimchi has noticeably increased.

Jongga Jip Pakkimchi

According to Daesang Jongga Jip, the number one player in the packaged kimchi market, sales of 'pa-kimchi' increased by 103% year-on-year in the first half of this year (January to June). Sales of 'gatkimchi' and 'mulkimchi' rose by 80% and 82%, respectively. Total sales of specialty kimchis, including mulkimchi (dongchimi, nabak kimchi), pa-kimchi, and gatkimchi, grew approximately 51% in the second quarter (April to June) compared to the same period last year. During the same period, sales of 'poggi kimchi' increased by only 28.1%, and 'mat kimchi' sales rose by 13.1% year-on-year.

Specialty kimchis sold by CJ CheilJedang Bibigo, the second-largest player in the market, are also gaining great popularity. Bibigo's sales of specialty kimchis other than napa cabbage kimchi increased by about 50% year-on-year in the first half. In particular, sales of 'pa-kimchi' and 'gatkimchi' grew by 70%, and 'chonggak kimchi' sales increased by 50% compared to the previous year. Overall sales of Bibigo kimchi in the first half rose more than 20% year-on-year.

An official from the Korea Agro-Fisheries & Food Trade Corporation stated, "Traditionally, napa cabbage kimchi accounted for a high proportion of the annual per capita kimchi consumption in Korea, but recently, with the increase in single-person households and demand for specialty kimchis at home, people are consuming various types of kimchi according to their preferences." They added, "In response to this growing demand, major manufacturers and side dish stores selling napa cabbage kimchi are strengthening marketing for specialty kimchi sales by running promotions that offer gatkimchi, chonggak kimchi, and others as gifts when purchasing napa cabbage kimchi."

CJ CheilJedang Bibigo Cucumber Kimchi and Seasonal Specialty Kimchi Products

As the COVID-19 pandemic continues for a prolonged period, the overall packaged kimchi market, including specialty kimchis, is expected to experience high growth in the second half of the year. Kiwoom Securities stated, "With the increase in home dining demand and strong kimchi sales, Daesang's profitability centered on the food business could improve in the second half. Operating profit on a consolidated basis for the second quarter is expected to reach 41.4 billion KRW, a 23% increase from the previous year." CJ CheilJedang also anticipates that categories such as packaged kimchi, canned ham, soup dishes, and porridge will grow by 20-30%, leading to an 11% increase in processed food sales in the second quarter compared to the same period last year.

The packaged kimchi market is mostly dominated by Daesang and CJ CheilJedang. As of May, Daesang Jongga Jip's market share in packaged kimchi reached 42.2%. From 2017 to last year, it maintained a strong hold on the top spot with market shares of 49.8%, 46.7%, and 44.5%, respectively. CJ CheilJedang Bibigo, which is closely trailing behind, had a market share of 38.4% in May. Although its market share was only 28.1% in 2017, it has expanded its position by increasing to 34.5% in 2018 and 39.9% last year, threatening the top spot.

This content was produced with the assistance of AI translation services.