K-food makers target young consumers in Vietnam, Indonesia, Thailand

Industry

K-food makers target young consumers in Vietnam, Indonesia, Thailand

Published: 10 Aug. 2024, 07:00

Visitors line up in front of a Tous Les Jours branch in Ho Chi Minh City. [CJ FOODVILLE]

Korean food companies are increasingly turning their attention to the Southeast Asian market, aiming to develop products that appeal to the diverse tastes across the region with its burgeoning population of young consumers under 40.

CJ Foodville's bakery chain Tous Les Jours has gained significant traction in Vietnam, boasting over 400,000 membership subscribers across its 40 locations.

While it may not be widely recognized as a popular photo spot in Korea, the bakery franchise's three-story branch featuring floor-to-ceiling windows in Ho Chi Minh City that offers stunning views of the capital has become a hot spot for social media enthusiasts. This trend is helping to ignite the K-food craze, as more people flock to capture the perfect shot against the vibrant urban backdrop.

Orion's Choco Pie and Kkobuk Chips have also seen considerable success. The most notable trend, however, is the rising popularity of Korean noodle products.

Participants at Lotte Wellfood's promotional event in Vietnam pose for a group photo. [LOTTE WELLFOOD]

Ramyeon giant Paldo’s corporate body in the Southeast Asian country reported a remarkable 17.4 percent increase in sales last year, reaching 79.7 billion won ($58.5 million). The company plans to expand its production lines to boost the annual output of local specialty ramyeon to 700 million units by next year.

Otoki, previously known as Ottogi, has established a sales division and factory in Vietnam, producing and selling products like Jin Ramen and Yeul Ramen alongside locally tailored offerings such as "Oppa Ramen" and halal-certified ramyeon.

Samyang Foods, best known for its globally popular Buldak Ramen, established a subsidiary in Indonesia last year, tapping into the second-largest ramen market in the world after China.

In Thailand, the company has introduced a Mala Buldak Ramen to cater to local taste preferences, while in Malaysia, it is collaborating with CU and Pizza Hut to launch innovative dishes like Rose Buldak Kimbap and Mac & Cheese.

A 7-Eleven store in Thailand displays a digital advertisement for Mala Buldak Ramen. [SAMYANG FOOD]

Nongshim is also making significant strides in the region, having launched its new Shin Ramyun Tomyum Flavor and Shin Ramyun Tomyum Flavor Stir Fry in Thailand last November. These products have already surpassed 5 million units in sales within just eight months of their release, gaining popularity among Thais and prompting Nongshim to prepare for a global launch of the products later this year.

The food industry is keen to broaden its export horizons, leveraging the Southeast Asian market as a strategic base. According to a report from the Korea Agro-fisheries & Food Trade Corporation, the demand for Korean food products — including snacks, ramyeon and sauces — continues to surge, driven by the increasing awareness of K-food through the Korean Wave. With a population of approximately 600 million in the region and a growing interest in K-content, this market remains a promising blue ocean.

"Southeast Asian countries like Vietnam, Thailand and Indonesia exhibit high population growth rates and significant purchasing power among younger consumers, making them attractive markets. As awareness of K-food rises, we expect the demand for Korean snacks, ramyeon and sauces to continue growing," said Professor Yoo Seung-cheol from the School of Communication & Media at Ewha Womans University.

BY KIM KYOUNG-MI [yoon.seungjin@joongang.co.kr]