CJ CheilJedang Drives Rice Consumption Growth by Leading the 'Rice-Processed Convenience Food' Market with Differentiated Technology

Hetbahn, Hetbahn Cupban, and Bibigo porridge rice purchases increase by about 20% annually... Ongoing R&D and portfolio expansion for rice-processed convenience foods to support farmers' coexistence "Leading growth in the domestic rice-processed convenience food market"

[Asia Economy Reporter Lee Seon-ae] CJ CheilJedang is playing a leading role in market growth and boosting rice consumption by leveraging its differentiated ‘rice-processed convenient meal (HMR)’ technology.

CJ CheilJedang announced on the 17th that it has increased its purchase volume of domestically produced rice used in processed rice products such as ‘Hetbahn’ and ‘Bibigo Juk’ by an average of about 20% annually. The company purchased 9,400 tons in 2010, 13,000 tons in 2011, followed by 38,300 tons in 2017, 44,300 tons in 2018, and 53,500 tons last year. Considering that approximately 145,000 tons of rice were used domestically last year for ‘cooked food for meals’ and ‘lunchbox products’ (Statistics Korea data), CJ CheilJedang has significantly contributed to increasing rice consumption.

Amid changes in the national diet leading to a decrease in per capita rice consumption, CJ CheilJedang has been continuously making efforts to coexist with local farmers in rice procurement with a sense of mission. Since 2010, the company has provided stable sales channels through contract farming with about 2,500 farms in 14 regions nationwide, including Asan, Jincheon, and Iksan. It also promotes regional brands by commercializing local brands from famous rice-producing areas such as Icheon and Asan into Hetbahn products.

Last year, CJ CheilJedang completed a comprehensive rice processing center (RPC) dedicated to Hetbahn rice in Asan City and is supplying about 10,000 tons of rice for rice-processed convenient meals from this facility. This is the ‘Korea’s first one-stop win-win model for contract rice farming,’ where companies, regions, and farmers jointly build the rice processing center and collaborate on contract farming, rice processing, and delivery. Local farmers benefit from stable and long-term sales channels, which help increase their income, while CJ CheilJedang secures a stable supply of raw materials.

CJ CheilJedang’s representative rice-processed convenient meals, which have consistently received consumer love, include ‘Hetbahn,’ ‘Hetbahn Cupban,’ ‘Bibigo Juk,’ and ‘Bibigo Frozen Rice.’ The combined sales of these products (based on consumer price conversion) were 468 billion KRW in 2017, 581 billion KRW in 2018, and 700 billion KRW last year, increasing by more than 20% annually on average. This upward trend continued with cumulative sales of 443 billion KRW from January to July this year, and sales of over 800 billion KRW are expected from rice-processed convenient meals alone this year.

CJ CheilJedang attributes these achievements to securing unique taste and quality tailored to each product’s characteristics based on its rice processing R&D capabilities, which have captivated consumer preferences and palates. Koreans are highly sensitive to rice and cooked rice, making uniform rice quality and taste the most important and differentiating competitive factors in rice-processed convenient meals. In this regard, CJ CheilJedang possesses the country’s only ‘customized self-milling technology.’

Expanding a diverse portfolio of rice-processed convenient meals that fit consumer lifestyles has also been effective. In 2015, the company launched Hetbahn Cupban and Bibigo Frozen Rice, enabling a ‘One-meal Solution’ anytime and anywhere with just one product. In November 2018, it introduced Bibigo Juk, which allows consumers to enjoy restaurant-level juk as an everyday meal, creating and leading a new food culture trend.

CJ CheilJedang’s efforts have led to overall growth in the rice-processed convenient meal market. The market size, combining packaged rice, cup rice, packaged juk, and frozen rice (Nielsen Korea), was 557.7 billion KRW in 2017, 648.8 billion KRW in 2018, and 727.4 billion KRW last year, showing double-digit growth rates annually, with 391 billion KRW recorded in the first half of this year. Market share based on cumulative sales in the first half of this year is 67.3% (1st) for Hetbahn, 64.9% (1st) for Hetbahn Cupban, 30.7% (1st) for Bibigo Frozen Rice, and 37.9% (2nd) for Bibigo Juk.

A CJ CheilJedang official said, “Rice-processed convenient meals, which started with Hetbahn, have expanded to cup rice, frozen rice, and juk products, becoming a category that contributes to the growth of the rice-processed HMR market and the expansion of rice consumption,” adding, “We will continue to introduce various high-quality rice-processed convenient meals that satisfy consumer preferences and tastes through steady research and development.”

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