Food Industry's Growth Strategy This Year: Dual Approach of Overseas Expansion and New Business Strengthening

Portfolio Diversification and Sustainable Growth
Expanding Global Markets and Strengthening Local Production

Major domestic food companies have officially launched their mid- to long-term growth strategies at this year's regular shareholders' meetings, focusing on two main pillars: global market expansion and strengthening new businesses. Amidst domestic demand stagnation caused by high interest rates and inflation, their strategy aims to achieve sustainable growth through portfolio diversification and profitability enhancement.

Bang Kyung-man, President of KT&G, is delivering a greeting at the 38th Annual General Meeting of Shareholders held on the 26th at the Daejeon Human Resources Development Center.
[Photo by KT&G]

Global Market Expansion... Strengthening Local Production and Campaigns

Orion has declared this year as the "first year to leap to 5 trillion KRW in sales and 1 trillion KRW in operating profit," accelerating its efforts to penetrate overseas markets such as the United States, China, Australia, and Europe. Last year, Orion recorded consolidated sales of 3.1043 trillion KRW and operating profit of 543.6 billion KRW. CEO Lee Seung-jun stated, "We plan to enhance our global export capacity through the integrated production base in Jincheon, Chungbuk, and expand the rice snack and candy production lines by adding new facilities at the Hanoi factory in Vietnam."

Samyang Foods is focusing on both production expansion and product diversification. Last year, Samyang Foods posted sales of 1.73 trillion KRW, a 45% increase from the previous year, and operating profit of 344.2 billion KRW, up 113%. Since the full-scale export of Buldak Bokkeum Myun began in 2016, Samyang Foods has maintained growth for eight consecutive years. CEO Kim Dong-chan said, "With the completion of the second factory in Miryang in the first half of this year, we will increase production capacity and strengthen our overseas network by securing production bases in key countries by 2027. We will also expand our main product lines beyond ramen to include sauces, snacks, and beverages."

KT&G is expanding its overseas tobacco market. Last year, KT&G recorded sales of 5.9095 trillion KRW, a 0.8% increase, and operating profit of 1.1848 trillion KRW, up 1.5%. President Bang Kyung-man said, "The overseas cigarette segment led profit growth last year," adding, "We will expand our portfolio with nicotine pouches and vapor-type electronic cigarettes."

Ottogi is strengthening global promotion and sales through the "Jin Ramen Global Campaign" this year and targeting the halal market of 2 billion people in Southeast Asia and the Middle East. By establishing a global logistics center in 2026 and a production base in the United States in 2027, Ottogi aims to achieve early overseas sales of 1.1 trillion KRW by 2030.

SPC Samlip has begun reorganizing its overseas supply chain centered on smart factories and integrated logistics centers. It plans to strengthen the foundation for mid- to long-term overseas expansion through the advancement of production and logistics infrastructure.

Strengthening New Businesses... Expanding Investment in Bio, Health Functional Foods, and Technological Innovation

Orion is positioning its bio business as a new growth pillar. Last year, it acquired Ligacym Bio, which possesses antibody-drug conjugate (ADC) technology for next-generation anticancer drugs and holds 23 pipelines. Orion plans to actively nurture its bio division based on technology development and in-house clinical capabilities.

Ottogi is enhancing its domestic business centered on ready-to-eat meals. By reorganizing its logistics system and expanding eco-friendly packaging, it aims to broaden consumer touchpoints and improve profitability through product portfolio restructuring.

CJ CheilJedang is fostering bio, health functional foods, and microorganism-based technologies as core new growth engines. CEO Kang Shin-ho said, "We will secure cost competitiveness by actively utilizing global production bases and strengthen our future foundation by expanding biodegradable plastics and contract development and manufacturing organization (CDMO) businesses." Additionally, in the feed and livestock sectors, the company plans to increase productivity through quality management and consulting enhancement, while accelerating immune-oncology new drugs and microbiome-based wellness businesses.

Dongwon Group has shifted to a technology-centered management system. For the first time in its 56-year history, it established a technology division and appointed Jang In-sung, a chief technology officer (CTO) with experience at Siemens Germany and Hyundai Motor Company. Dongwon plans to strengthen manufacturing capabilities through automation and facility advancement and expand technology-based new businesses.

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