Jeju Water Makes Its Mark in New York as K-Water Expands Globally

K-water is making strides in the global market, with bottled water exports showing consistent growth each year. Leveraging the high trust and quality associated with K-food, the industry is overcoming domestic market limitations and seeking new opportunities.

According to data from the Korea Customs Service on June 29, bottled water exports rose from $6 million in 2022 to $7.49 million in 2023, reaching $8.06 million in 2024, and totaling $9.19 million last year. This marks an increase of approximately 53% over three years.

Leading the K-water sector is Samdasoo, which holds the largest market share in South Korea. Currently, Samdasoo exports to 17 countries, including the United States, China, Vietnam, Singapore, the Philippines, Saipan, and Taiwan. The annual export volume, which was only 1,178 tons in 2020, surpassed 10,000 tons for the first time in 2024 and has maintained that level annually since.

On June 22, Samdasoo shipped an initial batch of approximately 40 tons to the U.S. East Coast, marking its first entry into this market, with sales focused on New York and New Jersey. Distribution will be handled through H Mart, the largest Asian supermarket chain in North America. Previously, Samdasoo concentrated on the West Coast, sending 20 tons to the region in July 2000 and focusing on the Korean community in Los Angeles. With this expansion into the East Coast, the company plans to pursue entry into the Canadian market, broadening its North American sales network.

Other companies, such as Nongshim and Orion, are also expanding into international markets with a premium image. Nongshim's Baeksansu is produced locally in Yanbian, near the Baekdu Mountain source, rather than being exported from South Korea. About 25% of its bottled water sales come from China, indicating a significant local business presence.

Orion's Jeju Lava Water is leveraging its existing global distribution networks to enter the premium mineral water market in China, Southeast Asia, and North America. Recently, the company added cosmetic sales to its business objectives and is preparing to launch cosmetics through an ODM (original design manufacturer) model, aiming to enhance its brand value in overseas markets.

However, logistics costs remain a challenge for expanding K-water exports. Due to the low price per unit relative to their volume and weight, transportation costs increase significantly over long distances. Reports indicate that logistics costs for the newly established East Coast route are over 50% higher than those for the West Coast. Companies are focusing on strengthening the branding of K-water while promoting a premium image to enhance brand value.

An industry insider stated, "Bottled water incurs high transportation costs, but the quality of the source water and brand value are crucial competitive advantages in the premium market. As the domestic bottled water market matures and growth potential becomes limited, there is a growing atmosphere of interest in K-food that is gradually expanding overseas demand for Korean bottled water."