School Meal Specialist Company 'Cham Food System' Challenges the Rapidly Growing Meal Kit Market

Due to the spread of the COVID-19 virus, more people are spending their daily lives at home rather than engaging in outdoor activities, naturally increasing the demand for home-cooked meals over dining out.

As a result, the meal kit market is also rapidly growing. According to data from the Korea Rural Economic Institute, the meal kit market size was 10 billion KRW in 2017, 200 billion KRW in 2020, and is expected to grow to 700 billion KRW by 2024.

A meal kit refers to a product that provides pre-prepared ingredients and seasonings, allowing the user to complete a dish by following the recipe. Unlike ready-made products, meal kits offer higher freshness. On the other hand, they are more convenient compared to buying ingredients separately and cooking from scratch. Since only the necessary amount of ingredients is included, there is less burden in disposing of food waste.

The industry expects the meal kit market to continue growing, as the main consumer groups?single-person and dual-income households?are increasing. According to the Ministry of the Interior and Safety, single-person households accounted for 39.5% of all households in the first quarter. The proportion of dual-income households is also steadily rising.

Additionally, middle-aged and older consumers are emerging as a new consumer group for meal kits. Even those in the middle-aged and older demographic, who are accustomed to preparing and cooking ingredients themselves, are beginning to perceive meal kits not as frozen foods or ready-to-eat meals (HMR), but as convenient ‘main dishes’.

Amid fierce competition among various companies such as distributors, dairy product companies, and food companies within the meal kit market, Cham Food System has entered the market with the brand “Yolke,” leveraging its expertise built over 20 years as a school meal provider.

Cham Food System involved over 30 chefs and 20 nutritionists in the development of meal kit menus, and Yolke opened an offline store at Sinpung Station (Line 7) to provide nutritionally healthy and fresh meal kits.

According to a Cham Food System representative, “Through over 20 years of school meal service, we have developed strict food management and cooking methods to provide the best meals for the academic performance and growth of youth, recognizing that food has high social public value.”

They also stated, “In the meal kit market, which is expected to grow to 700 billion KRW, Cham Food System plans to develop various menus while maintaining fresh ingredients and taste, and will strive to achieve the social public value of food through franchise business.”

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