Last year, gim exports totaled $1.1 billion (Hanwha about 1.6115 trillion won). Gim is the No. 1 item in seafood food exports. The food industry is expanding related businesses such as gim snacks for overseas markets.
◇ Three reasons the gim business is drawing attention
According to the Ministry of Oceans and Fisheries on the 23rd, last year's gim exports totaled $1.1 billion. The food industry is focusing on the gim business. First, compared with international grain raw materials such as wheat, corn and cocoa, gim has relatively low price volatility. In addition, when processed into products such as gim snacks and ready-to-eat meals, it can increase added value. That means competitiveness after securing raw materials depends on processing technology, brand and distribution capacity.
A food industry official said, "Gim is a category where processing and brand competitiveness determine profitability more than the raw material itself," and noted, "Because the burden of raw material prices is relatively low, it is easier for food companies to set mid- to long-term strategies."
Competitiveness in the global market is also one reason the food industry is focusing on gim. Gim snacks are cited as fitting demand for low-calorie, vegan and gluten-free foods. Compared with the fiercely competitive global snack market for items like potato chips or chocolate, it is relatively easier to gain a foothold. The entry barrier is also lower than for items such as ramen and sauces, the standard-bearers of K-food, which require understanding of cooking methods and food culture.
The government's expanded support for seafood exports is also cited as a reason for the attention on the gim business. The Ministry of Oceans and Fisheries said the previous day it had allocated 79.1 billion won for this year's overseas market development program for seafood, up 23.6 billion won from a year earlier, and would expand support targets for export vouchers, promising commercialization and overseas marketing.
A gim exporter said, "As companies face reduced burdens for initial market development expenses that are difficult to shoulder alone, an environment has formed that makes it easier to consider the gim business," adding, "We expect to be able to try experimental products or entry into new markets with relatively less burden."
◇ Food conglomerates such as Orion move in one after another
Amid this trend, food conglomerates' gim businesses are growing rapidly. Orion launched a gim snack business by establishing a joint venture for gim processing in collaboration with the National Federation of Fisheries Cooperatives. This came after reviewing gim as a new global export item as part of expanding its existing food business. Together with the fisheries cooperative, it is also building a structure to directly manage everything from raw material procurement to processing and export.
Daesang has designated gim as a global strategic item and is focusing on overseas production and localization. While producing and selling products tailored to local tastes centered on seasoned gim, it is also working to define gim as a snack. Daesang currently exports seasoned gim to 30 countries, including the United States, Japan and Thailand. In particular, after establishing a production plant in Jakarta, Indonesia, in 2017, it captured the top spot in the market with the local brand "Mamasuka." It aims to reach cumulative sales of 1.4 trillion won in Indonesia by 2030.
CJ CheilJedang is planning the business by classifying gim as a snack category. As the share of gim in subsidiary CJ Seafood's sales last year overtook fish cakes for the top spot, and as global consumption of gim has grown, the strategy is to expand processed food lines that enable repeat purchases. Recently, it also launched a snack in Vietnam called "Bibigo Kimbap Roll Snack," a cracker wrapped in gim. In addition, Samchully, which had focused on the city gas business, entered the gim business last year by acquiring seasoned gim manufacturer Sung Gyung Food.
However, along with the outward growth of the gim industry, there are many challenges to address. Potential fluctuations in raw material production due to climate change, intensifying competition from the increase in gim snack products, and reliance on demand from specific countries are cited as burdens. A food industry official said, "As demand for gim increases, there is growing recognition that a structure relying only on offshore aquaculture has limits," adding, "Efforts to strengthen competitiveness, such as land-based gim technology that enables year-round production and standardization of raw materials, will become important."
Choi Cheol, a professor in the Department of Consumer Economics at Sookmyung Women's University, said, "As global demand for gim expands, moves in other countries to produce similar products will likely grow," adding, "Along with origin management, research and development of processed foods using gim and brand differentiation strategies will determine the future competitiveness of the gim industry."