More Than Two Bowls Per Person... Ready-to-Eat Soup Dishes 'Boiling Hot'

Bibigo Soup Dishes Sell 100 Million Packs
Essential Korean Soups and Expanding Consumer Base
Market Size Exceeds 300 Billion KRW Last Year

CJ Expands Dining-Out Product Line
Ottogi Differentiates with 'Regional Soup'
Meat Processor Harim Also Challenges Market

[Asia Economy Reporter Seungjin Lee] Kang Hyewon (44, pseudonym), a working professional and housewife, recently never misses purchasing a certain product whenever she goes grocery shopping. It is ready-to-eat soup and stew home meal replacements (HMR). Kang had avoided buying HMRs, thinking they were instant foods. However, after trying soup and stew HMRs last year due to the impact of COVID-19, her perception completely changed. Kang said, "Both my children and I always need soup when we eat rice, and the taste and quality of HMR products are better than expected, so I keep buying them."

The HMR market has been rapidly growing due to the impact of COVID-19. Especially, competition among food companies is intensifying over soup dishes, which are indispensable on Korean dining tables.

Over 100 Million Packs of Bibigo Soup and Stew HMR Sold

According to the food industry on the 26th, the soup and stew HMR market grew to at least 300 billion KRW last year. This is 1.5 times the 199.8 billion KRW estimated by Nielsen Korea for the 2019 soup and stew HMR market.

CJ CheilJedang’s ‘Bibigo Soup and Stew’ sold over 100 million packs last year. This means that every Korean ate more than two bowls on average. Its sales exceeded 200 billion KRW, making it the third mega product after Hetbahn and Bibigo dumplings. Ottogi’s soup and stew HMR recorded sales of 43 billion KRW last year, showing a growth rate of over 50% compared to the previous year. Dongwon F&B also benefited from COVID-19 last year, with soup and stew HMR sales growing significantly. New products launched in April achieved sales of about 20 billion KRW within eight months.

The food industry expects the soup and stew HMR market to grow to around 500 billion KRW this year, as major companies like CJ CheilJedang, Ottogi, and Daesang, as well as companies that were not previously active in the HMR market, are competing to launch new products.

On the 25th, dozens of types of soup-based HMR are displayed at Lotte Mart Cheongnyangni branch.

Once Tried, No More Cooking Soup or Stew

The soup and stew HMR market, which saw rapid growth last year, continues to show steady growth this year. While sales of side dishes have slowed in the first quarter, soup dishes continue to see rising sales.

According to SSG.com, sales of soup and stew HMR from January to March 23 this year increased by 15% compared to the previous year. Especially in February last year, when COVID-19 fears peaked, panic buying of HMR caused sales to surge by hundreds of percent compared to the previous year. Considering this, the growth of soup and stew HMR this year remains steep.

An industry insider said, "Side dishes grew significantly last year, but with the arrival of spring and increased dining out, the rapid growth has slowed. On the other hand, soup dishes continue steady sales because Koreans need soup even if there are no side dishes, and it is convenient as a meal substitute."

In particular, while the main consumers used to be people in their 20s and 30s, the food industry insider explained that the consumer base has broadened significantly as middle-aged and older consumers increased their purchases due to COVID-19 last year.

Accelerating Investment and New Product Launches

Competition in the food industry is also intensifying. As new companies rush into the HMR business, existing companies are accelerating new product development along with facility investments worth hundreds of billions of KRW.

Industry leader CJ CheilJedang plans to expand its premium dining-out style product line this year in line with the growing ‘home meal’ trend. Last year, CJ CheilJedang led sales growth by launching dining-out style soup dishes such as Chadol Yukgaejang, Jinguk Seolleongtang, and Jeonbuk Miyeokguk. This year, it aims to achieve 260 billion KRW in sales from Bibigo soup and stew products.

Ottogi plans to strengthen its competitiveness focusing on regional soup dishes. Currently, there are 35 types of regional soup dishes, and starting with the launch of ‘Daegu-style Beef Yukgaejang,’ it plans to release various products to reinforce the perception that ‘regional soup dishes = Ottogi.’ Dongwon F&B, which invested 40 billion KRW in new advanced special facilities on a 10,000㎡ site at its Gwangju plant last year to produce ‘Yangban Guktang Jjigae,’ also plans to secure competitiveness through new product launches.

Meat processing company Harim is also scheduled to enter the soup and stew HMR market. Harim recently invested 520 billion KRW to establish the ‘Harim Food Complex’ in Iksan, Jeonbuk, to expand its HMR product line. Harim plans to expand its range from ramen to soup and stew HMR products.

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