The domestic food industry is turning its attention to the sauce market as the next-generation growth engine. With K-food gaining popularity in global markets, exports of Korean sauces have been steadily increasing. The global sauce market is expected to reach 100 trillion won within three years, prompting not only food companies but even fashion companies to enter the market.

According to the electronic disclosure system on August 19, the sales of Samyang Foods' Sauce and Seasoning Materials Division, which is responsible for the company's sauce business, reached 35.8 billion won in the first half of the year, up 61.5% from the same period last year. Although this accounts for only 3.3% of total sales, considering that noodles and snacks make up 91% of the company's revenue, it is becoming established as a core business that could follow in the footsteps of ramen.

This performance by Samyang Foods is the result of its recent efforts to target the global sauce market, led by its "Buldak Sauce." Last year, Samyang Round Square Vice Chairman Kim Jungsoo announced plans to foster the sauce business as a new cash cow and has since launched aggressive marketing campaigns. In April, the company renewed the Buldak Sauce design and promoted the product at the Coachella music festival in the United States. More recently, Samyang Foods signed an official partnership with Panda Express, the largest Asian restaurant brand in the U.S., targeting both B2C (business-to-consumer) and B2B (business-to-business) markets. Vice Chairman Kim's goal is to grow Buldak Sauce into a "global hot sauce" brand, on par with Tabasco and Cholula.

In addition to its existing products such as Buldak Sauce, Samyang Foods has also pursued mergers and acquisitions for the first time in 10 years as a foothold for expanding its sauce business. The company plans to acquire a 100% stake in G&F, a domestic sauce and soup company, for 60 billion won. G&F specializes in manufacturing ramen soup bases and powdered sauces, and supplies products to competitors such as Nongshim and Ottogi. Last year, G&F posted sales of 41.7 billion won and an operating profit of 3.2 billion won.

Not only Samyang Foods but the entire food industry is strengthening its sauce business. From internal components such as powdered and liquid sauces used in ramen to B2C-exclusive sauces reflecting low-sugar and low-calorie trends, the sauce category is expanding comprehensively across the industry.

Recently, fashion company LF has also entered the market in earnest by acquiring a sauce specialist. LF Foods, a subsidiary of LF, is in the process of acquiring a 100% stake (80,396 shares) in MZ Food Solution, a B2B-oriented seasoning and sauce manufacturer. The deal is valued at approximately 50 billion won. While sauce distribution already accounts for a significant portion of LF Foods' business, this decision aims to create synergy with its existing food manufacturing operations. In the first quarter of this year, LF Foods recorded sales of 38.4 billion won, with sauce distribution accounting for 10 billion won, or 26.1% of the total.

Exports of sauces have been growing every year. According to the Korea Customs Service, sauce exports, which stood at $189.61 million in 2016, more than doubled to $399.76 million last year. In the first half of this year, exports reached $211.89 million, and the figure is expected to surpass $400 million by the end of the year, setting a new record high.

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The global sauce market is also scaling up rapidly. According to market research firm Euromonitor, the overseas sauce market grew from $45 billion in 2019 to $59.7 billion in 2023. By 2028, it is projected to exceed $70 billion (approximately 101.26 trillion won).

An industry official explained, "As the preference for convenient home-cooked meals continues due to the impact of COVID-19 and high inflation, and as more overseas consumers want to experience Korean food, demand for sauces is increasing both domestically and internationally. Reflecting consumer preferences, the range of products is diversifying, and collaborations between companies using sauces are becoming more active, leading many companies to actively enter the sauce market."