As new frozen dumpling products are being released successively, competition in the domestic frozen dumpling market is becoming intense. The frozen dumpling market has stagnated due to the emergence of various home meal replacements (HMR). While CJ CheilJedang overwhelmingly holds the number one market share, companies like Haitai Confectionery, Pulmuone, Dongwon F&B, and OTOKI are engaged in a survival competition.
◇Last year frozen dumpling market saw slight growth... Competition is fierce
According to the food industry statistics information portal (aTFIS), last year, the total retail sales of frozen dumplings in Korea amounted to 446.3 billion won, which was only a 1.07% increase from the previous year. Looking at the sales figures by manufacturer, CJ CheilJedang recorded sales of 195.7 billion won, holding an overwhelming number one market share of 43.9%. Haitai was in second place with 50.9 billion won, followed by Pulmuone (48.8 billion won), Dongwon F&B (37.1 billion won), and OTOKI (33.6 billion won).
However, aTFIS's statistics are based on retail, specifically offline sales, and do not include online sales. Dumpling manufacturers are keeping their domestic frozen dumpling sales figures confidential. For all companies except for the number one CJ CheilJedang, the rankings could change depending on the proportion of online sales.
The competition among Haitai Confectionery, Pulmuone, and Dongwon F&B, and OTOKI is intense. While Haitai's dumpling retail sales recorded a 5.9% decrease in the previous year, Pulmuone saw an increase of 4.1% during the same period. The fourth-ranked Dongwon F&B managed only a 2% increase in offline sales, while OTOKI saw a significant increase of 20.8% during the same time. The sales gap between Haitai and Pulmuone is only 2.1 billion won, and the gap between Dongwon F&B and OTOKI is merely 3.5 billion won.
Frozen dumplings began to gain popularity when Haitai launched the 'Homeland Dumpling', the first frozen dumpling in Korea, in 1987. This marked the birth of the home meal replacement (HMR) concept. Although it appeared that the frozen dumpling market was rapidly growing due to the COVID-19 pandemic, the emergence of HMR products that can substitute for dumplings led to a stagnation.
An industry insider noted, "While sales are not drastically increasing or decreasing, this indicates that there is a solid consumer base," adding, "Even though the domestic market may be saturated, there is a reason for consistently improving the taste and convenience of products." Another insider mentioned, "From the manufacturers' perspective, the dumpling market itself is large, so they are participating in competition through product diversification."
◇ Haitai=Tradition·Pulmuone=Thin skin·OTOKI=Diversification·Dongwon=Dumpling 'winning move'
Dumpling manufacturers are enhancing their competitiveness by emphasizing their unique features.
Haitai focused on traditional methods. Last November, Haitai launched the homemade king dumpling 'Our House Dumpling' made using traditional methods. While the way dumplings are made and the ingredients used differ from household to household, a common characteristic is that kimchi and tofu are always included. To perfectly replicate homemade dumplings, they stuffed traditional dumplings with plenty of kimchi and tofu, shaping them into large king dumplings.
Pulmuone, which in 2019 introduced 'Yalpi Dumpling' with thinner dumpling skins than the existing frozen dumplings, received the 'IR52 Jang Young-sil Award' from the Ministry of Science and ICT in January. The dumpling skin, while thin, is characterized by its resistance to tearing. They achieved mass production of uniformly thin dumpling skins using independently developed shaping equipment and strengthened durability through a multi-water dumpling skin mix ratio.
OTOKI made a bold move with a diverse lineup of dumplings. Since launching its first dumpling product in 2006, OTOKI has showcased six product categories and 35 items, including boiled dumplings and fried dumplings. In 2019, they launched the premium dumpling brand 'X.O. Dumpling,' which currently features 22 varieties. An OTOKI official stated, "Last year's dumpling sales increased by 12% compared to the previous year, setting a record high."
Dongwon F&B is targeting the market with its four types of dim sum launched in 2020. Shrimp hargow, chive cheong fun, xiaolongbao, and liability dumpling have recorded cumulative sales of 10 million packs over four years.
The competition is expected to continue this year as well. An industry insider said, "Manufacturers are making various attempts not only in terms of taste and variety but also with small packaging for single-person households," adding, "There will consistently be a demand for dumplings this year."