Cheap Food in the US... Spam Transforms into Korea's No.1 Seollal Gift

On the 29th, ahead of the major national holiday Seollal, Spam gift sets, which have become one of the practical holiday gifts, are displayed at Hanaro Mart Yangjae Branch in Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

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As the nation's major holiday, Seollal, approaches, there is a food gift that sells remarkably well. It is Spam. The name is a shortened form of 'SPiced HAM,' referring to seasoned ham. Unlike in the United States, where it was considered a 'cheap food,' Spam has established itself as one of the most practical holiday gifts in Korea. As of the end of last year, the cumulative sales volume of Spam reached 2.05 billion units. This means that each Korean has consumed about 40 cans of Spam. It is expected that the cumulative sales will exceed 2.1 billion units by the end of this year.

Spam. [Photo by CJ CheilJedang]

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Spam was developed in 1937 by Hormel Foods, a meatpacking company founded by George Hormel in Minnesota, USA, in 1891. It was created as a way to use the unpopular pork shoulder, and it became widely known worldwide as military rations during World War II. Hormel revealed that over 100 million pounds of Spam were supplied as military food during the war.

Spam first entered Korea during the Korean War in June 1950. At that time, the U.S. military used Spam as combat rations due to its portability and long shelf life, which led Korean people to recognize it as a so-called 'premium ingredient' consumed by soldiers from advanced countries. Spam was officially introduced to Korean consumers when CJ CheilJedang (then CheilJedang) formed a technical partnership with Hormel, the developer, in 1987 and began sales and distribution. Thanks to CJ CheilJedang's branding and premium marketing strategies, Spam gradually shed its image as a wartime supply and transformed into a representative holiday gift.

The Spam boom in Korea began after the 1990s foreign exchange crisis. During the economic downturn, Korean consumers started exchanging Spam as holiday gifts instead of expensive Korean beef, ginseng, or premium whiskey because Spam maintained a luxurious image while being affordable and cost-effective. Its salty flavor meant no additional seasoning was needed, and its long shelf life made it easy to store, contributing to its popularity.

Spam Classic product. [Photo by CJ CheilJedang]

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According to CJ CheilJedang, 500 tons of Spam were sold in its launch year, 1987, amounting to 7 billion KRW in sales. Sales surged rapidly after 2002 when the slogan "A slice of Spam on warm rice" successfully established Spam as a convenient side dish. From the late 2000s, cultural marketing, outdoor marketing, and star marketing campaigns were launched to promote the product through various channels, times, and places of consumer contact.

Spam's sales revenue increased from 7 billion KRW in 1987 to 52 billion KRW in 1997, more than a sevenfold increase in ten years. It reached 330 billion KRW in 2017, 419 billion KRW in 2018, 420 billion KRW in 2019, 450 billion KRW in 2020, and 490 billion KRW in 2021. Since 2017, its market share has exceeded 50%, securing its dominant number one position.

CJ CheilJedang is making efforts to expand Spam's consumer base from the main purchasers in their 30s and 40s to younger generations in their teens and 20s. Last year, in line with the health-conscious trend of high protein and low calorie, they introduced the world's first Spam made from chicken breast. The 'Spam Chicken Breast' product combines protein-rich chicken breast, chewy chicken thigh meat, and savory chicken skin in an optimal ratio to deliver Spam's unique soft and elastic texture and taste. This product contains 17 grams of protein per 100 grams, providing 60% of the daily nutritional intake with just one 200-gram can. It also has low calories and fat content, making it relatively easy to enjoy without guilt.

A CJ CheilJedang representative said, "We are targeting segmented consumer tastes with products that align with the recent 'Low Food' trend, which reduces specific ingredients like sodium and sugar. We will continue to communicate with younger generations and expand brand awareness by introducing various products that meet consumer needs and expectations."

Spam Chicken Breast Lunar New Year Gift Set. [Photo by CJ CheilJedang]

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