100 million shipments: Korean snacks gaining ground in world's two largest markets

Lotte Wellfood and Samyang Foods are expanding globally with new factories in India and China to meet rising K-food demand among Gen Z consumers.

Packs of Pepero are pictured at a large supermarket in Seoul on May 22. [YONHAP]

Lotte Wellfood and Samyang Foods are ramping up global expansion by launching their first overseas factories in India and China, aiming to meet surging demand for K-food among Gen Z consumers and strengthen their foothold in two of the world’s largest markets.

Lotte India, a subsidiary of Lotte Wellfood, completed construction of a Pepero production line in Haryana and began full-scale operations on July 9.

The company exported 70.1 billion won ($50 million) worth of Pepero in 2024, a 30 percent increase from 2023.

When converted to volume, that equates to 106.5 million units — the first time annual overseas shipments exceeded 100 million.

Pepero is now sold in more than 50 countries and is considered one of Lotte’s key global brands.

During a strategic meeting in Poland in September of last year, Lotte Chairman Shin Dong-bin laid out a goal of growing Pepero into a “megabrand” generating 1 trillion won in annual sales.

Lotte plans to target the Indian confectionery market, which is worth an estimated 17 trillion won, by gradually launching products tailored to domestic tastes.

“India, with a population of 1.4 billion, has high demand for chocolate products, but the hot and humid climate makes it difficult to preserve quality,” a Lotte Wellfood spokesperson said. “We conducted extensive formulation tests to keep the taste and aroma of the original Pepero, while ensuring it wouldn’t melt even in 40-degree [104 degrees Fahrenheit] heat.”

The company aims to use the Indian facility as an export hub to neighboring markets in Southeast Asia and the Middle East.

Samyang Foods, known for its hit “fire noodles” or Buldak instant noodles, chose Jiaxing, Zhejiang Province, as the site of its first overseas production plant.

Buldak ramen is pictured at a large supermarket in Seoul on June 29. [YONHAP]

When the facility is complete in 2027, it is expected to produce up to 840 million servings annually for the Chinese market alone. China accounts for 25 percent of Samyang’s total exports and remains a key growth driver. Sales from its Chinese subsidiary last year reached 2.1 billion yuan ($287 million).

“China has strong brand awareness for Buldak and a solid customer base, so we selected it as our first overseas manufacturing site,” a spokesperson for Samyang Roundsquare said. “We are also developing locally tailored products, including new releases inspired by the work culture of younger Chinese consumers.”

Facing stagnation in the domestic market, Korean food companies are turning to populous countries like China and India to drive overseas sales.

Orion, which operates factories in China, Vietnam, Russia and India, generated more than 65 percent of its total revenue from overseas last year. CJ CheilJedang, which runs plants in countries including the United States and China, reported that international sales accounted for 49.2 percent of its revenue last year.

To build loyalty among Gen Z consumers abroad — many of whom follow K-pop — companies are also leaning on K-pop idols as brand ambassadors.

CJ CheilJedang’s Bibigo brand partnered with boy group Seventeen in May as a global ambassador and released limited-edition products including seaweed snacks and cup tteokbokki, a spicy street food made with rice cakes

A second wave of collaborative items targeting global consumers is scheduled to launch later this year. Lotte Wellfood also plans to launch a global Pepero Day campaign this September in partnership with its global ambassador, K-pop group Stray Kids.

“Gen Z is trend-sensitive and actively shares content,” a Lotte Wellfood spokesperson said. “We will continue to run diverse campaigns to grow Pepero’s brand value.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY NOH YU-RIM [paik.jihwan@joongang.co.kr]