This Year’s Food Trends: 'Home Meal Replacement (HMR) Boom in Home Cooking' · 'K-Food Prosperity in Ramen and Mandu'... Dining Out Faces 'Delivery Survival Strategies'

Stay-at-Home Life... HMR Daily Use Estimated at 4 Trillion
Record High Exports of Ramen and Kimchi
Dine-Out Industry Slumps Due to Store Operation Hit

[Asia Economy Reporter Lee Seon-ae] This year, the food industry enjoyed an unexpected boom due to the impact of the novel coronavirus disease (COVID-19). With social distancing measures sparking a 'home-cooked meal craze,' home meal replacements (HMR) dominated dining tables. In overseas markets, ramen, dumplings, and ice cream were re-evaluated as emergency food and dessert snacks amid the COVID-19 situation, leading to a surge in sales. Domestic food companies' early focus on improving HMR quality and strengthening online delivery, along with efforts to enter overseas markets, have been recognized as paying off this year. On the other hand, the dining-out industry was hit hard and fell into recession due to restrictions on in-store operations. However, those who reinforced delivery and takeout systems managed to somewhat escape the crisis.

'Home-cooked Meal Craze' Drives Growth in HMR and Ramen

This year is regarded as a year when HMR demand exploded as 'home-cooked meals' became normalized. Accordingly, major food companies that actively invested in HMR saw their performance increase significantly. CJ CheilJedang, the leading food company driving the HMR market, is expected to achieve record-high performance this year. CJ CheilJedang ranked first with the highest cumulative sales up to the third quarter, reaching KRW 6.841 trillion (food division). The second place was Dongwon F&B, with cumulative sales of KRW 2.3482 trillion up to the third quarter.

The rise in food companies' performance aligns with the growth of the HMR market. According to the Korea Agro-Fisheries & Food Trade Corporation, the domestic HMR market size exceeded KRW 3 trillion last year and is estimated to have surpassed KRW 4 trillion this year. The corporation had predicted the HMR market size to reach about KRW 5 trillion in 2022, but the COVID-19 pandemic is expected to accelerate this growth significantly.

The ramen market also enjoyed a boom. The domestic ramen market size reached KRW 1.65 trillion up to the third quarter, marking a 5.1% growth compared to the same period last year, the highest ever. Considering the peak ramen season in November and December, it is expected to surpass the largest scale set in 2018 (KRW 2.093 trillion) by the end of the year.

K-Food Soars with Kimchi and Snacks

This year marked a rise in the global status of K-Food. First, ramen gained explosive popularity. Ramen exports are expected to reach about USD 600 million, a record high. Up to November, ramen export value was USD 549.72 million, a 28.4% increase compared to the same period last year, already surpassing last year's export value (USD 467 million). The main player is Nongshim, the top domestic ramen company. Nongshim operates factories in China and the United States, producing and selling Shin Ramyun, Neoguri, Chapagetti, and Yukgaejang bowl noodles. Nongshim's total overseas sales this year are expected to reach USD 990 million, a 24% increase from the previous year. The global popularity of K-Food, along with the 'Jjapaguri' (a mix of Chapagetti and Neoguri) featured in the movie 'Parasite,' is also considered a contributing factor.

Dumplings have also gained prominence. CJ CheilJedang's 'Bibigo Dumplings' recently achieved annual sales of KRW 1 trillion, rewriting the history of the food industry. Bibigo Dumplings are the first single food item in the food industry to surpass KRW 1 trillion in sales. Although its overseas expansion was later than Shin Ramyun (Nongshim) and Choco Pie (Orion), achieving KRW 1 trillion in sales ahead of them is significant.

Ice cream exports are also expected to reach record highs. November ice cream export value was USD 58.138 million, already exceeding last year's annual level of USD 54.182 million. Exports were led by Binggrae and Lotte Confectionery. Binggrae is active in the U.S. market with its 'Melona' brand. Binggrae's overseas ice cream sales steadily increased from KRW 21 billion in 2017 to KRW 25 billion in 2018 and KRW 33 billion last year. This year, about 10% sales growth compared to the previous year is expected, making it likely to achieve KRW 36 billion in sales. Lotte Confectionery strengthened its ice cream export organization from the beginning of the year, actively expanding new clients, resulting in sales growth of over 50% compared to the previous year up to November.

Interest in products that boost immunity has driven kimchi exports to record highs. Up to November, kimchi export value was USD 131.52 million, far surpassing the previous record of USD 16.61 million set in 2012, even without December's results. Daesang, leading with the 'Jongga-jip' brand, and CJ CheilJedang, operating the 'Bibigo' brand, led exports. Both companies' export values increased by more than 30% this year.

Orion demonstrated the strength of K-snacks. Orion's operating profit in the third quarter this year was KRW 107.8 billion, a 6% increase from the previous year, marking the highest performance for the same period since its founding. This was thanks to about 15% growth in global subsidiaries in China, Vietnam, and Russia.

'Dining Out is a Quagmire'... Online Market Explodes

Due to bans on in-store dining and operational restrictions, the dining-out industry had no choice but to endure a difficult year. E-Land Eats and CJ Foodville, which operate buffets, are representative examples. E-Land Eats, operating Ashley and Jayeon Byeolgok, entered emergency management in July and downsized stores, while Shinsegae Food, operating Olban and Bonobono, also reduced the number of stores. CJ Foodville conducted store closures along with voluntary retirement programs.

They actively sought survival by shifting to delivery services. CJ Foodville launched 'VIPS Yum Delivery,' a delivery-only brand of VIPS, and also released representative menu items from flagship brands like Season's Table and Jeil Noodles House as delivery-exclusive products. E-Land Eats also provides Ashley delivery services.

Those who strengthened untact (contactless) services early managed to somewhat escape the overall crisis. Fast food is a representative example. McDonald's sales up to November increased by 7.5% compared to the same period last year. Expanding McMorning breakfast delivery services to delivery apps like Baedal Minjok and Yogiyo, and enhancing the convenience of the drive-thru system called McDrive, were analyzed as key factors.

Meanwhile, the keyword dominating the industry this year was untact. With 'stay-at-home life' making delivery routine, the online food market also grew explosively. According to Statistics Korea, the online food market transaction amount from January to October reached KRW 34.6 trillion, a 60.3% increase compared to the same period last year. The online food market transaction amount has been increasing every year, surging from KRW 13.2 trillion in 2017 to KRW 18.7 trillion in 2018 and KRW 26.7 trillion last year. This year's transaction amount up to October already exceeded last year's total by KRW 8 trillion. The industry expects the amount to surpass KRW 40 trillion by the end of the year as untact consumption further activates amid the third wave of COVID-19.

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