As U.S.-Korea trade issues have flared after the launch of the Donald Trump administration, Korea's food industry is speeding up its push into the European market. Until now, non-Asian export markets for K-food focused on the United States, but more corporations are targeting European tables with the "taste of Korea."
According to market research firm Euromonitor on the 17th, the global consumer food-service market is about $3.2 trillion (about 4,415 trillion won). This figure covers all food-service expenditure by consumers. It is distinct from the business-to-business (B2B) market. A food industry official said, "The expansion of dining-out demand is closely tied to increased use of ingredients by local restaurants and hotels," adding, "It also means bigger B2B supply opportunities for K-food corporations."
According to the Ministry of Agriculture, Food and Rural Affairs, Korea's agro-food exports to Europe totaled $680 million (about 938.2 billion won) last year. That was up 25.1% from a year earlier. By item over the same period, ramen rose 52.1% from a year earlier, and instant rice and tteokbokki increased 41.4%. Kimchi climbed 40.3%, confectionery 11.4%, and beverages 9.6%.
In this context, major K-food corporations are making Europe a new growth axis instead of the United States, their traditional core market. A prime example is Samyang Foods. Samyang Foods has partnered with Filipino food-service company Jollibee to supply Buldak sauce to Jollibee's U.K. stores. French fries made with Buldak sauce are slated for release in the second half of this year. Samyang Foods established a European subsidiary in Amsterdam, the Netherlands, in Jul. last year.
Nongshim is also moving to expand distribution channels in key European countries, including Germany and France. In Mar. this year, Nongshim established a European subsidiary in Amsterdam, the Netherlands. It is actively leveraging port, rail, and road networks, including the Port of Rotterdam in the Netherlands, which handles heavy cargo volumes in Europe, and is developing local distribution by expanding channels in Germany and France. Nongshim's European sales last year were $84 million (about 110 billion won). Nongshim aims to raise that to $336 million (about 463.3 billion won) by 2030, four times the current level.
CJ CheilJedang, which built recognition with Bibigo dumplings, is solidifying its foothold in the European food market with kimchi cooking sauces. It plans to begin supplying sauce products to major local markets in the United Kingdom and France this month. An industry official said, "It appears to be a strategy of building awareness of K-sauces through B2B operations at local hotels and then moving on to launch household products overseas."
Pulmuone, after opening a sales office in Amsterdam, the Netherlands, plans to establish a sales subsidiary in Europe in the second half of this year. It is exploring local distribution networks centered on vegan and health-focused product lines. OTOKI is also expanding European local distribution centered on ramen and sauces, which have high overseas demand.
The food industry expects the share of Europe in Korea's food exports to continue to grow. They say this is because the Trump administration is likely to keep strengthening protectionism and tariff pressure. U.S. tariffs on imported foods range from 2% to 25% by item. Meat and some processed foods face relatively higher rates.
An industry official said, "An export structure centered on the U.S. market is inevitably vulnerable to trade variables. The European market has significant potential to increase market share through expansion of local distribution networks and tailored products," adding, "There is no reason to stick it out in the U.S. market when tariff-related expense rises and local price competitiveness falls."
Chung Yeon-seung, a professor of business administration at Dankook University, said, "Diversifying export markets is essential to respond to uncertain market variables," adding, "With the Trump administration's reciprocal tariff policy, the European market, which had been a relative niche, has become a new arena of opportunity."