Last year, the overseas business performance differentiated the fortunes of the domestic food industry as food companies are accelerating their strategies to target the U.S. market ahead of the inauguration of Donald Trump's second term administration.
Due to the Trump administration's forecast of protectionism, it has become essential for domestic brands to increase their awareness and market dominance in the U.S. market through local production. The U.S. emerged as the largest exporter of K-food last year, surpassing China and Japan. Food companies are continuously expanding their factories in the U.S.
According to related industries on the 9th, SPC Group, which operates Paris Baguette, is planning to establish a large-scale baking factory in the U.S. for the first time. They are pushing to establish a new factory on a 150,000 square meter site in Texas, investing $160 million (233.9 billion won). This will be the largest among SPC Group's overseas factories. Currently, SPC operates over 200 Paris Baguette stores in North America, aiming to open 1,000 stores by 2030.
The decision for large-scale local investment coincided with the reorganization of the headquarters of Paris Baguette America. Recently, the headquarters appointed new senior executives. Darren Tipton has been serving as the Chief Executive Officer (CEO) since 2021, while Nick Scaccio has taken the role of Chief Operating Officer (COO), Cathy Chavenet as Chief Marketing Officer (CMO), Eric Galkin as Chief Supply Chain Officer (CSCO), Saeyong Park as Chief Financial Officer (CFO), and Michelle Jagroop as Chief Human Resources Officer (CHRO).
CJ Foodville, which operates Tous Les Jours, is also aiming to achieve a total of 1,000 store openings by 2030 in the U.S. CJ Foodville is building a factory in Georgia, investing $54 million (79 billion won) on a 90,000 square meter site. It is expected to be completed in the latter half of this year. The goal is to produce over 100 million main bakery products annually, including frozen dough and cakes.
The increase in U.S. investments is not limited to the bakery industry. CJ CheilJedang, which has settled in the U.S. market with the frozen dumpling brand Bibigo, already has 20 production facilities in the U.S. They also announced plans last November to build the largest Asian food factory in North America in South Dakota.
By acquiring the U.S. frozen food company Schwan's in 2019, CJ CheilJedang became able to leverage the logistics facilities and distribution network established across the U.S. The company aims to advance through the construction of this new factory, which will cover the area of 80 soccer fields (575,000 square meters) and require an initial investment of 700 billion won. The completion is aimed for 2027, with plans for production lines for dumplings and egg rolls, as well as wastewater treatment facilities and a logistics center.
The investments by corporations have reportedly caught the attention of President Trump. Heo Young-in, Chairman of SPC, has been invited to the inauguration ceremony of President Donald Trump, scheduled to take place in Washington, D.C. on the 20th (local time). This comes just a week after SPC announced its plans to establish a factory in the U.S. It is said that the ROK-US Alliance Friendship Association recommended Chairman Heo to the U.S. side, noting his active participation in economic cooperation activities between South Korea and the United States.
Governor Kristi Noem of South Dakota personally visited the groundbreaking ceremony of CJ CheilJedang's new factory to encourage the investment. Noem is noted to be a close associate of President Trump, having been nominated by Trump as the Minister of Homeland Security.
Food corporations are in a situation where they need to accelerate overseas investments due to the saturation of the domestic market. In particular, the expansion into the U.S., the largest market, is essential. According to the Ministry of Agriculture, Food and Rural Affairs, last year, the export of K-food plus (agriculture, food, and related industries) reached $13.03 billion (19 trillion won), an increase of 6.1% compared to the previous year, marking the highest ever. Exports to the U.S. saw a rise of 21.2% to $1.5929 billion (about 2.3 trillion won), making it the top export destination. Products such as ramen and frozen gimbap gained popularity on social media, contributing to increased recognition through K-food experiences linked with universities in baseball and golf.
An industry official noted, “The new factories are mostly the fruits of investment projects that began several years ago,” adding that they are measures to secure infrastructure for materials and supplies supply in North America and to operate the distribution networks efficiently.