Recently, domestic franchises have begun to expand into the Middle Eastern market. In the past, only chicken franchises ventured out, but now various franchise items such as hanwoo, bread, and porridge are becoming more common. This is due to the increase in Middle Eastern tourists visiting Korea. It means not only that the interest of Middle Eastern consumers in Korean food has increased, but also that there is a growing consumption of food they enjoyed while traveling in Korea.
On the 20th, according to the distribution industry, the Bon Group, known for its Bonjuk brand, has recently signed a master franchise agreement with the local distributor Joy Group to target the Middle Eastern market. Bon World, which is a separate corporation with 30% equity held by Bon Group (BonIF), mainly focuses on overseas restaurant franchise operations and exporting convenience food products. Joy Group, partnering with Bon World, is known as a specialized company in food import and distribution based in Qatar.
SPC Group's Paris Baguette signed a business agreement in March with the United Arab Emirates (UAE) company Samaya Food Investments. This agreement is aimed at Paris Baguette's entry into the UAE, with the first store expected to open in Dubai. Considering logistics costs, production facilities have already been expanded. SPC Group completed the Paris Baguette Johor production center in Malaysia in February. The bread produced at this factory is set to be exported to Southeast Asia and the Middle East.
Hoesung Hanwoo has also started to target the Dubai market. The Middle Eastern market has high meat consumption and most of it is imported from abroad, with plans to target the premium beef market. To this end, they have signed a cooperation agreement for export with local distribution companies. The background for Hoesung Hanwoo not being content with just the domestic market and expanding to Dubai has been the support of organizations such as the Korea Agro-Fisheries & Food Trade Corporation (aT). Recently, aT held an export consultation meeting in Dubai, UAE, providing support from market research to consultation matching and post-management.
The coffee franchise The Venti has also chosen Jordan in the Middle East as its third overseas market. To this end, they signed a master franchise agreement with Jordanian company JKT Networks, which is known for its diverse business experience in distribution, brand launching, and marketing.
Industry insiders believe that the reason K-Food is rapidly entering the Middle Eastern market is due to the Middle Eastern consumers becoming more familiar with Korean food and brands.
In the past, the spread of Korean food through media such as dramas during the Korean Wave was the background for entering the market, but recently, Middle Eastern consumers who have visited Korea have begun searching for foods they enjoyed while there. According to the Korea Tourism Organization (KTO), last year, 41,000 Middle Eastern tourists visited Korea, marking the highest number ever.
Additionally, it is also due to the perception that the Middle Eastern region has an environment conducive to brand expansion. As major Middle Eastern areas rapidly emerge as global cities attracting foreign capital, the capacity to accept foreign brands is reportedly increasing.
A representative from The Venti noted, "Considering cultural openness and franchise acceptance, we chose the Middle East, specifically Jordan," adding, "We judged that it has high strategic value as a trading hub where various nationalities and cultures coexist."
In terms of numbers, the growth trend is also striking. As of last month, agricultural, forestry, and livestock products exported to the UAE have reached $116 million, a 40.2% increase compared to the same period last year. Items such as ramen ($9.7 million, 12.1%), sauces ($900,000, 44.6%), and beverages ($6 million, 28.0%) have seen significant exports.
Electricity Chairman aT Export Food Division said, "Among the Middle East, Dubai is a gateway city connecting the Gulf Cooperation Council (GCC) region and Africa, making it a market with high export potential that we cannot give up," adding, "We expect K-Food will have sufficient chances of success. We plan to expand our portfolio of high-value products like halal-certified hanwoo to significantly increase exports to the Middle East."