Kimchi is recognized worldwide as the flagship food of Korea. Kimchi is a traditional Korean fermented food and a basic side dish of the Korean diet. It is considered one of the most popular and healthiest food in Korea and it is gaining popularity across the world. Kimchi is made from various vegetables, red pepper, other spices, and fermented seafood and is rich in various vitamins, minerals, dietary fiber, and other biological components. These fermentations are typically prepared with favoring ingredients included and do not require further processing or desalting before consumption. Consumers across the globe are seeking new and sensory products than regular staple food products which are expected to fuel the growth of the global kimchi market. The global kimchi market valued USD XX million in 2020 and is estimated to reach USD XX million by 2028, growing at a CAGR of XX%
Source: DataM Intelligence Analysis (2021)
Growing popularity of kimchi due to its associated health benefits is the key driver of the kimchi market
The growing popularity of kimchi due to rising awareness in people regarding the health benefits associated with kimchi is driving the growth of the market. Kimchi is filled with nutrients, while being low in calories. Chinese cabbage has vitamins A and C, at least 10 different minerals, and over 34 amino acids, one of the main ingredients in kimchi. Many green vegetables are healthy sources of vitamin K and riboflavin nutrients. Since kimchi also contains many green vegetables, such as cabbage, celery, and spinach, these nutrients are usually a great source. The process of lacto-fermentation that kimchi undergoes makes it particularly health benefiting. The probiotics present in kimchi provide lots of health benefits and improves the immune system. This is also one of the reasons why it gained its popularity amid the pandemic and the growth of the market is expected along with its growing popularity.
Baechu- provides anticarcinogenic benefits
Among the various types of kimchi available, Baechu (Chinese cabbage) kimchi, is the most proliferating type. It is prepared by fermenting salted-spiced Chinese cabbage (Brassica campestris L.). Its main ingredients, aside from Chinese cabbage, are red pepper, onion, ginger, and garlic, which have many beneficial health effects. It has been reported in a number of studies that Baechu kimchi which is made up of the above key ingredients have powerful anticarcinogenic elements and antioxidant effects in vitro and vivo, which resulted in its growing popularity.
Korea led Asia Pacific to the top of kimchi market
Asia Pacific accounted for largest market revenue share of YY% in the year 2020, owing to increasing demand for Kimchi in Korea. The Asia Pacific is expected to register the highest growth rate in the forecast period of the global kimchi market. The kimchi has the flavor of Chinese food, as well as the Korean and Chinese food products, are the popular food products among South Asian consumers which are expected to impact positively on the growth of the kimchi market. In the country, there is a tradition of making kimchi before winter to preserve it until summer when fresh vegetables are supplied. In 2018, in South Korea, Kimchi's production value was estimate to be around 1.1 trillion South Korean won. As Koreans prefer to buy Kimchi items instead of producing them by themselves, the production of Kimchi has continued to increase.
Kimchi is an emerging product in North America and Europe which is expected to gain huge popularity among this region in foreseeable future. Los Angeles is home to the largest enclave of Koreans outside of Korea and the fusion with Mexican food. Pak is the owner of KoJa Kitchen, a new Korean-Japanese fusion restaurant in Downtown Los Angeles. They serve short rib tacos and braised pork bowls and every dish comes with kimchi. KoJa gets their kimchi from Cosmos Food, the largest manufacturer of kimchi in the United States.
Source: DataM Intelligence Analysis (2021)
The global kimchi market is moderately competitive with only few vendors in the global market. CJ CheilJedang Corp., Cosmos Food Co. Inc., Daesang Corp., Dongwon F&B and Elaia Holdings (Hong Kong) Ltd. are some of the key players in the market. Daesang and CJ are the key leaders of the South Korean Kimchi industry, with these two accounting for almost 85 percent of the market. Daesang was South Korea's largest Kimchi manufacturing company in 2019, with a sales volume of about 116.2 billion won from South Korea. With around 104.45 billion South Korean won, it was closely followed by CJ. The popularity of kimchi is increasing in western countries which offers huge opportunities for the key players in the global kimchi market.
COVID-19 Impact: Pandemic had a positive impact on global kimchi market
While the global trade came to halt during the lockdowns imposed to control the spread of novel coronavirus, the food industry has been impacted by severe freight challenges but the demand and sales of kimchi increased globally. In the midst of the pandemic, kimchi has gained particular attention after it was recorded in many overseas newspapers that fermented food such as kimchi enhances immunity to disease. According to South Korean Ministry of agriculture the kimchi was the top grower during the pandemic with its export value rising by 40% and hitting US $97.9 million in starting 6 months of the pandemic. During the pandemic year 2020, Kimchi imported to South Korea was about USD 152.4 million worth.
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