CJ CheilJedang Aims for a 'Big Jump' in the US Market by Proactively Expanding Production Infrastructure

Dumpling Sales Surge, US Share Reaches 70% of Overseas Revenue
Production Bases Expanded from West to Central Regions, Full Utilization of Schwan's Distribution Network
Continuous Discovery of Next-Gen K-Food... Cultivating 'Bibigo' as a Global Mega Brand

[Asia Economy Reporter Lee Seon-ae] CJ CheilJedang has embarked on expanding its presence in the North American market, fueled by the achievement of 1 trillion KRW in sales of ‘Bibigo Mandu’ (dumplings). By establishing its eighth production base, the company is actively seeking the next-generation K-food to connect dumplings across the entire United States, including the West, Midwest, South, and East regions. CJ CheilJedang plans to increase the share of the U.S. market to 70% of its total overseas dumpling sales and accelerate global business growth based on this success.

◆ Site Confirmed in South Dakota, USA

On the 12th, CJ CheilJedang announced that it has secured a production site of 170,000 pyeong (approximately 561,983 square meters) in Sioux Falls, South Dakota, located in the U.S. Midwest, with support from the South Dakota state government. This enables the company to have a stable production infrastructure in the U.S. West (California), East (New York/New Jersey), and Midwest (South Dakota, etc.), preparing for medium- to long-term demand.

Prior to this, CJ CheilJedang established a production base in Beaumont, California, which began operations last year, expanding its ambient production lines beyond dumplings to include fried rice and noodles. South Dakota will also expand its role from initial dumpling production to a production base for next-generation K-food under Bibigo and Schwan’s, with plans to continue phased investments according to future market demand.

◆ Surging Dumpling Demand, Proactive Investment

The proactive expansion of local production lines in the U.S. by CJ CheilJedang is due to the explosive growth of ‘Bibigo Mandu,’ which surpassed 1 trillion KRW in annual sales last year. The utilization rate of dumpling production plants across the U.S. has already reached about 90%, reflecting the strong local popularity of dumplings. As dumplings gain popularity, perceptions of K-food are also changing locally. This is the background for the company’s proactive investment to prepare for future demand.

Since October last year, CJ CheilJedang has been deepening its penetration into the U.S. market through Schwan’s distribution network, expanding consumer touchpoints. The company is accelerating entry into various distribution channels, including major retailers such as Walmart, Kroger, and Target, as well as large supermarkets and grocery stores like Food City and Hy-Vee, and small- to medium-sized supermarkets.

◆ K-Chicken, Hetbahn, and Gim as Next Candidates

CJ CheilJedang created a disruptive innovation case by introducing ‘Bibigo Mandu’ into the monotonous dumpling market. While competitors used machine-ground dumpling fillings, CJ CheilJedang used hand-chopped fillings and developed a new process of kneading the dough for a long time to improve the texture of the dumpling skin. As a result, the company set a new milestone with annual sales of 1 trillion KRW from a single dumpling product.

To secure future competitiveness, CJ CheilJedang plans to nurture various Bibigo products as the ‘next dumplings.’ In particular, ‘Korean-style chicken,’ ‘Hetbahn’ (instant cooked rice), and ‘Gim’ (seaweed) have high growth potential. These are familiar menus to locals as they frequently appear in Korean movies, dramas, and other K-content, but there is no dominant product leading the market, raising expectations that a second ‘Bibigo Mandu’ case can be created.

In line with the growth of ‘hot sauce,’ which has widely penetrated American diets, CJ CheilJedang plans to expand the base of K-sauces such as gochujang (red chili paste) and actively promote ‘kimchi,’ which is gaining attention as a ‘healthy fermented food.’ A CJ CheilJedang official said, “We will expand our achievements in North America to other countries, grow Bibigo into a ‘K-food global mega brand,’ and leap forward as a truly global company.”

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