CJ CheilJedang, the top player in the gyoza dumpling market, is entering the dim sum market. As a result, a three-way competition is expected to unfold among the existing top players in the dim sum food category: Dongwon F&B, OTOKI, and CJ CheilJedang.
According to industry sources on the 5th, CJ CheilJedang started selling its new products 'CJ Gourmet Xiao Long Bao' and 'CJ Gourmet Shrimp Hargao' at large supermarkets such as Emart from that day. CJ CheilJedang collaborated with Chef Jeong Ji-seon, who appeared in the Netflix show 'Culinary Class Wars', to produce the products. One of Chef Jeong's nicknames is 'the master of dim sum.' He has also published a book on dim sum. A representative from CJ CheilJedang noted, 'The dim sum sector within the frozen dumpling subcategory is experiencing high growth, and consumer interest continues to grow, so we launched these products.'
The dim sum market is different from the gyoza dumpling market that CJ CheilJedang dominates. This field requires a combination of juicy filling and tender dumpling skin, along with various textures to achieve flavor. Since Dongwon F&B launched a set of four types of dim sum—Dongwon Dim Sum Xiao Long Bao, Shrimp Hargao, Fan-shaped Dumplings, and Chives Cheong Fun—in December 2020, it has almost monopolized the market.
According to Dongwon F&B, their cumulative sales exceeded 10 million bags last December, four years after the launch of their dim sum products. Dongwon F&B dim sum features chewy textures created by kneading starch with water boiled at over 100 degrees Celsius, and the translucent skin adds to its visual appeal. The dim sum, steamed and then rapidly frozen at -30 degrees Celsius to ensure steam freezes, also helps preserve the flavor. This is important to prevent the texture from being ruined by ice shards that form and melt.
Subsequently, the company that entered the dim sum market was OTOKI. Last December, OTOKI launched frozen dumpling brand X.O Dim Sum, introducing three varieties: Shrimp Hargao, Xiao Long Bao, and Mala Cheong Fun. OTOKI stated, 'While the existing frozen dumpling market has been dominated by gyoza dumplings, there is an increasing trend of demand for various forms of dumplings, including dim sum, which prompted our entry into the market.'
According to market research firm Nielsen, as of the end of June this year, the domestic dim sum market is approximately 40 billion won when combining online and offline sales. Among this, Dongwon F&B holds a market share of 75%.
In the food industry, there is a strong belief that the entry of CJ CheilJedang, the number one company in the gyoza dumpling market, will significantly change the market landscape. Following the launch of new products, CJ CheilJedang is known to actively engage in marketing efforts, which include deploying a large number of tasting personnel.
A frozen sector MD from a major supermarket stated, 'Currently, we are at a level where we are observing consumer reactions centered around Emart Traders Guwol, but once we enter all three major supermarkets (Emart, Lotte Mart, and Homeplus), changes will occur in the dim sum market.' An industry insider mentioned, 'CJ CheilJedang's goal is to increase sales through entering the dim sum market since growth in the gyoza dumpling market has stagnated somewhat.'