K-Food Newsletter

K-meal Kit Market Trends
Date
2023-08-04 11:21:55
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Leading Korean meal kit companies such as Fresheasy, Cookat, Mychef, and Wingeat have begun to focus on improving their business structure through additional investment. Fresheasy, the No. 1 in the industry, achieved sales of KRW 529.7 billion last year. In 2021, it secured an investment of KRW 200 billion and went on to acquire companies such as Tasty9, HEO Dak, and Line Logistics System, among others. As the COVID-19 era came to an end, demand for dining out increased, and reliance on meal kits decreased, the company reorganized its business units and focused on efficiency. The company has strengthened its convenience food publishing business, a core competency. Cookat's revenue last year was KRW 37.2 billion, down nearly KRW 10 billion from the previous year. In early 2022, the company closed all of its offline stores, Cookat Market, and switched to operating stores in 104 GS25 stores. The company has moved to strengthen its cooperation with its parent company, GS25. 

 


MyChef was acquired by Korean Air C&D, a company that provides in-flight meals for Korean Air. The company plans to expand its business through its private brand (PB) and original equipment manufacturer (OEM) production. MyChef has also built an 11,927.5 square meters smart factory in Seongnam,   establishing a system capable of producing 100,000 meal kits per day. They plan to enter the in-flight meal kit market to strengthen the synergy with the parent company. Wingeat is looking to break through by expanding overseas. Its "Wingeat Biz" service, which provides convenience food to small businesses, has successfully taken off with 1,400 subscribers just two months after launch. The company has formed a dedicated overseas business team and exports to 11 countries, including Singapore, Vietnam, Hong Kong, the U.S., and Costa Rica.
According to a survey conducted by Statistics Korea and Euromonitor in 2019, the size of the Korean ready-to-eat meals market reached KRW 2.19 trillion in 2018, almost double the size in 2011. It is estimated to reach KRW 4 trillion in 2023. Meanwhile, the size of the domestic meal kit market increased from KRW 101.7 billion in 2019 to KRW 376.6 billion last year. It is expected to reach KRW 526 billion by 2025. However, the total size of the meal kit market, which includes everything from individuals who have already entered the market to hotels and department stores, large food companies and related platform companies, and famous restaurants, is expected to be larger.

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