Daesang Expands US Kimchi Output as Brand Captures 56% of South Korea Exports
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South Korea’s Daesang Corporation captured 56 per cent of the country’s total kimchi exports in the first half of 2026, generating 48 million dollars in overseas shipments.
Total South Korean kimchi exports reached 86 million dollars during the six-month period, cementing the United States as the group’s largest foreign market.
California Plant and Supply Sourcing
The Seoul-listed food group expanded output across North America through its 10,000-square-metre facility in the City of Industry, California, and its 2023 purchase of food maker Lucky Foods. The California factory provides 2,000 metric tons of annual processing capacity, holding dedicated cold-storage rooms and running lines for regular, vegan, white, cucumber and extra-spicy Silbi recipes.
Daesang buys napa cabbage, radishes and green onions directly from growers in the United States. Sourcing produce locally allows the manufacturer to bypass trans-Pacific shipping schedules and preserve crispness across its mainstream supermarket accounts in western and central states.
Mainstream Retail and Product Tweaks
Asian packaged food producers face flat domestic populations and high ocean freight expenses, pushing operators to build manufacturing inside export destinations. By establishing factory lines in California, Daesang avoids refrigeration surcharges and port congestion that erode margins on perishable shipments sent from South Korea.
Building local production networks introduces new supply-chain liabilities. Processing regional crops exposes the company to North American harvest price swings, while reformulating recipes for western supermarket chains risks alienating traditional Asian diaspora shoppers who built the brand’s initial market share. Daesang is calculating that volume from mainstream retail shelves will easily offset higher US factory overheads.
“Jongga began expanding out of Asian supermarket channels into broadline American grocery stores in 2019.”
Portfolio Shift Beyond Korean Grocers
Jongga began expanding out of Asian supermarket channels into broadline American grocery stores in 2019. The company completed its California plant in early 2022, becoming the first Korean food maker to operate a commercial-scale kimchi facility on American soil, before buying Lucky Foods a year later to add the Seoul Kimchi brand to its stable.
Global export sales for the brand tripled from 32 million dollars in 2017 to 90 million dollars in 2025. The United States overtook Japan in 2023 as the label’s highest-volume international destination, supported by distribution agreements that put jars into mainstream grocery aisles.
Global Scale and Product Formats
To match western consumer eating habits, Daesang widened its catalog beyond whole fermented cabbage. The lineup includes shredded carrot and green cabbage blends, mild white varieties, apple-beet-carrot mixtures, spreadable kimchi pastes for bread and crackers, and portioned Crunchy Bites containers.
Commercial collaborations have also entered the schedule. In 2024, Daesang partnered with San Francisco chef Corey Lee to sell San Ho Won Kimchi lines under its Gourmet Edition badge.
The United States has emerged as Jongga’s largest export market and is a key market for our global kimchi business.
Retail analysts will track Daesang’s full-year 2026 sales reports to see whether overseas kimchi revenue tops the 90 million dollar total booked in 2025.
Questions & Answers
Q.Why has Daesang chosen to expand its kimchi production facilities within the United States?
Why has Daesang chosen to expand its kimchi production facilities within the United States?
The company established manufacturing in the US to bypass trans-Pacific shipping schedules, avoid refrigeration surcharges, and mitigate port congestion that impacts margins on perishable goods sent from South Korea.
Q.What are the main risks Daesang faces by shifting its kimchi production to North America?
What are the main risks Daesang faces by shifting its kimchi production to North America?
Building local production exposes the company to harvest price swings for regional crops. There is also a risk that reformulating recipes for western supermarkets could alienate traditional Asian diaspora shoppers.
Q.How has Daesang altered its product range to appeal to western consumers?
How has Daesang altered its product range to appeal to western consumers?
Daesang has widened its catalogue beyond whole fermented cabbage to include blends like shredded carrot, mild white varieties, and apple-beet-carrot mixtures. They also offer spreadable kimchi pastes and Crunchy Bites containers.
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