The South Korean food industry is regaining momentum in targeting the Middle East market. As expectations grow that risks accumulated during the prolonged conflict will ease, companies are reassessing their local market strategies.
According to the Ministry of Agriculture, Food and Rural Affairs and industry sources, the Middle East has established itself as an emerging market for K-Food despite ongoing disputes. From January to April this year, agricultural and food exports to the Gulf Cooperation Council (GCC) region reached $160 million, a 37.6% increase compared to the same period last year. This figure significantly outpaces the export growth rates of the United States (8.9%) and China (15.5%). Analysts attribute this surge to high purchasing power, a Muslim market of approximately 2 billion people, and the influence of K-content.
With this robust growth, the prospect of peace has prompted major companies to accelerate their local business expansion and export resumption. Dongwon F&B plans to resume shipments of previously delayed export volumes to the United Arab Emirates (UAE) and Kuwait starting this month, following a contract signed in January. The company currently exports over 20 halal-certified products, including Dongwon tuna and Yangban seaweed, to five Middle Eastern countries, and is looking to expand its offerings to include items like seaweed snacks and tteokbokki.
CJ CheilJedang is using Saudi Arabia and the UAE as bases to expand its reach into neighboring countries. The company aims to accelerate its entry into major distribution networks with popular halal-certified products like Bibigo seaweed snacks and Bibigo stir-fried noodles.
The ramen industry is also focusing on strengthening its presence in the Middle East. Nongshim exports 49 halal-certified products, including Shin Ramyeon, Neoguri, and Chapagetti, produced at its halal-dedicated line in Busan, and has recorded an average annual growth rate of 12% over the past five years. The company plans to introduce new products that reflect global trends, such as Shin Ramyeon Rosé.
Samyang Foods has seen its Middle Eastern sales grow from 50 billion won in 2024 to 66 billion won last year, prompting it to diversify its lineup around its popular Buldak brand, including sauces and protein pasta 'Tangle.' Ottogi is focusing on identifying buyers for Jin Ramyeon and Cheese Ramyeon and diversifying its local sales network, following its participation in the 'Gulfood 2026' food exhibition held in Dubai earlier this year.
Efforts to penetrate the Middle Eastern market are also taking shape among restaurant brands. Paris Baguette has completed halal certification for all its stores in Singapore and Indonesia, using its halal-certified production base established in Johor Bahru, Malaysia, as a hub. Genesis BBQ is also exploring entry into the Brunei market, focusing on expanding into the Middle East and bordering Muslim countries.
As expectations for export activation rise, concerns over supply chain disruptions that have pressured manufacturing costs are gradually easing. Notably, the supply of naphtha, a key raw material for product packaging, plummeted to 70% of normal levels immediately after the conflict began, forcing companies to seek alternative sourcing. Currently, supply levels have rebounded to about 85-90% of normal, which, along with stabilized oil prices and shipping costs, is expected to positively impact profitability.
However, there are cautious views that these geopolitical changes may take time to translate into improved corporate performance. An industry insider noted, "Considering the structure of raw material purchasing contracts and the lead time required for shipping, there will inevitably be a lag in reflecting the cost reduction effects. Additionally, as exchange rates remain high, the performance in the second half of the year will vary depending on each company's ability to manage exchange rate risks."
* This article has been translated by AI.
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