Korean Food companies Up R&D Spending

With Korean staples like ramyun and dumplings soaring in popularity around the world, major South Korean food companies are increasing their research and development (R&D) investments to cater to the expanding market

For 2023, CJ Cheiljedang achieved a historically high R&D spend of 234.8 billion won ($180 million), up 7.1 percent from the previous year and 1.31 percent company of total revenue This investment remains the highest among major food companies.

In 2023, despite the decline in sales and operating profit, CJ Cheiljedang spent about 30 percent of its operating profit on R&D expenses. With this investment, the company aims to pioneer next-generation products for both domestic and international markets.

The special achievement of CJ Cheiljedang in 2023 was 'Gourmet Sobaba Chicken', which surpassed 50 billion won in sales within eight months of its launch in May This surpassed the global craze caused by Bibigo Wang Gyoza, which sold 11 billion won six months after his arrival .

Gourmet Sobaba took three years to develop, with extensive research by food experts in five European countries to find the best cooking equipment The product’s unique sauce coating played a vital role in its success.

CJ Cheiljedang is actively pursuing opportunities in the export market and continuing its efforts through licensing and talent acquisition. The appointment of Gregory Yep, an accomplished R&D veteran with over 30 years of industry experience, as Chief Technology Officer (CTO) in 2023 reflects the company’s commitment to innovation. There are leaves.

Desang and Pulmuone exhibited significant investments in R&D by 2023, with both allocating more than one percent of their total sales to R&D expenditures. Desang’s R&D spending rose 21 percent year over year, hitting a new high.

Expanding beyond traditional offerings such as Home:ings water dumplings and home meal replacements (HMRs), Daesang ventured into health products by 2023. The company is actively exploring various R&D strategies, including starch sugar and biomaterials are included, in order to provide promising yields in terms of key components such as allulose and natural flavoring agents.

Meanwhile, Pulmuone renamed its research center to the plant-based meat research unit in September 2023, marking a shift towards sustainable food solutions if the company is making money will focus on sustainable foods, Korea, USA, Japan etc. It is tailoring brand strategies to meet consumer preferences in key markets

Otogi and Lotte Wellfood reported that R&D spending rose sharply in 2023, rising by 38.9 percent and 22.1 percent, respectively. The special emphasis on Lotte Wellfood's 'health and wellbeing' business segment, which produces sugar-free and nutritionally enhanced products, underscores its commitment to future growth. Following plans to increase the health and wellness segment to 9.2 percent of total sales by 2024, Lotte Wellfood aims to launch a consolidated portfolio in the second half of the year in the 19th century

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