The competition among retailers for dominance in the kimchi market is intensifying as the kimjang season approaches. The traditional practice of preparing large quantities of pickled cabbage is gradually fading, with consumers increasingly opting to purchase only what they need or choose premium products. Retail strategies are evolving to include a range of offerings from ready-made packaged kimchi to pickled cabbage and kimjang kits.
According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on October 11, the average retail price of a cabbage last month was 5,929 won, down 8.5% from the same month last year and 12.7% lower than the average price of 6,790 won. The Korea Rural Economic Institute predicts that this year’s autumn cabbage production will reach 1.222 million tons, a 19.3% increase from last year, due to the late harvest of summer cabbage combined with autumn cabbage supplies.
Despite the decrease in cabbage prices, the number of consumers making kimchi at home continues to decline. A survey by the Korea Rural Economic Institute found that the average purchase of cabbage for kimjang by a four-person household dropped from 21.9 heads in 2020 to 18.3 heads last year. The percentage of households making their own kimchi fell to 62.3% last year, a decrease of 2.2 percentage points from the previous year, while the proportion of those purchasing commercial kimchi rose by 3 percentage points to 32.5%. The main reasons for purchasing kimchi include the ability to buy only what is needed (39.5%) and the inconvenience of making kimchi at home (33.1%).
This shift is also reflected in the sales performance of packaged kimchi. Lotte Mart reported a roughly 5% increase in packaged kimchi sales from January to September this year compared to the same period last year. During the same timeframe, sales of small packaged kimchi (under 1 kg) at E-Mart rose by 6.6%. At Kurly, the total transaction value of packaged kimchi increased by 35% from July to September, with sales of small packages (100g to 1kg) growing by 39%, outpacing the growth of medium and large-sized products. This trend indicates a shift towards purchasing smaller quantities of kimchi as needed rather than stockpiling.
In response to rising demand, department stores and hotels are enhancing their premium kimchi offerings. Hyundai Department Store plans to launch its premium brand 'Myeongin Myeongchon Kimchi' on October 13 at its Apgujeong flagship store. The lineup will feature 12 varieties of traditional cabbage kimchi (30,000 won per kg) and radish kimchi (32,000 won per kg), made using ingredients from artisans across the country.
Hotel kimchi has also evolved from a simple food service to a significant independent revenue source. Chosun Hotel & Resort achieved 54 billion won in kimchi sales last year and expanded its kimchi center in Seongnam, Gyeonggi Province, in January, setting a sales target of 62 billion won for this year. Lotte Hotel & Resort has launched a subscription service to broaden its market reach, while Walkerhill Hotel & Resort continues to see solid sales growth with its 'Super Kimchi' brand.
Meanwhile, the competition among supermarkets and grocery stores for pre-orders of pickled cabbage is heating up to capture the demand for home kimjang preparations. Lotte Mart and Lotte Super's first pre-order sale of pickled cabbage earlier this month saw 75,000 boxes sell out in just six days. E-Mart and GS The Fresh have moved up their pre-order schedules compared to previous years to secure demand.
An industry insider stated, "Regardless of cabbage price fluctuations, the trend in kimchi consumption is shifting towards convenience and high quality. The key purchasing criteria now include taste, quality, and how easily it can be enjoyed."
* This article has been translated by AI.
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