S. Korea’s sauce exports hit record high amid product diversification

[Photo by MK DB]

The South Korean sauce market, once dominated by staples like ketchup and curry, has reached record-high export levels amid significant diversification and expansion.

According to statistics from Korea Customs Service released on Thursday, the cumulative export value of Korean sauces from January to April this year reached $130.93 million, up 6 percent compared to the same period last year.

The United States emerged as the largest importer of Korean sauces, accounting for 23 percent of exports, followed by China (12 percent), Japan (9 percent), Russia (7 percent), and Vietnam (5 percent). This surge in exports is attributed to the global trend of consuming convenient meals at home, often paired with various sauces, driven by high inflation rates worldwide.

A standout player in this market is Samyang Foods, whose globally popular “Buldak” stir-fried noodles has spurred significant growth in its sauce and seasoning sales. Last year, the company’s revenue from these products reached 38.1 billion won, up 31 percent from the previous year. Samyang Foods has steadily increased its investment in research and development for new sauce products, spending 2 billion won ($1.5 million) in 2021, 2.5 billion won in 2022, and 5.8 billion won in 2023.

Focusing on its iconic Buldak sauce, Samyang Foods aims to grow it into a “100 billion won brand.” Riding on the Buldak sauce’s popularity, the company launched a new sauce, “Buldak Chipotle Mayo,” in May last year, designed to complement tacos, nachos, and other Mexican dishes.

Korean fried chicken is also making significant inroads into the sauce market. Kyochon F&B, the operator of Kyochon Chicken, has designated sauces as one of its four core business areas. In January, the company launched “K1 Hot Sauce,” featuring Cheongyang chili peppers, on Amazon first, adopting a strategy of targeting international consumers before domestic sales.

Other Korean food companies, including Daesang, Sempio, and Paldo, are also accelerating their efforts to capture a share of the burgeoning sauce market.

Ottogi, a pioneer in the home meal replacement (HMR) sector in Korea since its launch of powdered curry in May 1969, is expanding its range of convenient meal products utilizing various sauces. CJ CheilJedang’s “Baeksul Topping Sauce,” launched in November last year, has also proven popular, surpassing 2 million units in cumulative sales.

The domestic sauce market has surpassed the 4 trillion won mark, driven by an expanding range of products from health-conscious low-sugar options to convenient sauce-based meals. According to the Ministry of Food and Drug Safety, the shipment value of sauces increased from 3.65 trillion won in 2021 to 4.01 trillion won in 2022.