Background and Purpose
Along with changes in socioeconomic and demographic conditions, the size of the domestic kimchi market has expanded, and so has the kimchi industry. In addition, as the export of kimchi products continues to increase, kimchi, as a driver for developing overseas markets for agri-food, has solidified its significance in economic and industrial terms.

The kimchi industry is an industry that has enormous economic and industrial impacts on other industries as it is connected with various sectors and economic entities in the process, from raw material production and procurement to manufacturing, distribution, sales, and consumption. In particular, it is an industry that is highly dependent on raw materials to produce products using various agricultural products in the form of raw materials and other agri-food ingredients. While it is closely linked with agriculture, playing the role of a large-scale consumer of major domestic agricultural products such as cabbage, radish, pepper, and garlic. Stable procurement of domestic agricultural products is essential for the stable production of domestic kimchi products and the development of the kimchi industry. At the same time, the kimchi industry plays an important role in stabilizing the supply and demand for primary agricultural products and for the sustainable development of agriculture.

To fully accomplish its role as a consumer of domestic agricultural products, the kimchi industry should promote continuous industrial development by solving problems that the kimchi industry faces internally and externally and creating new demand while responding to changing market conditions and environment.

Research Methodology
We used literature reviews, questionnaires, statistical data analysis, and quantitative analysis to identify and analyze the current status of the kimchi industry to derive measures for the development and competitiveness of the kimchi industry. We inspected various data on the kimchi industry for literature reviews, including domestic and international research papers and policy data. Our surveys questioned 203 kimchi manufacturers, 43 kimchi importers, 513 restaurants, 300 catering facilities, 1,500 domestic consumers, 1,500 Japanese consumers, and 700 Taiwanese consumers.

Based on the survey results, we analyzed the factors affecting kimchi purchases by domestic consumers, restaurants, and food-service facilities. Also, we inspected the reasons influencing kimchi purchases by Taiwanese and Japanese consumers. Through simulation analysis using the KREI-KASMO (Korean Rural Economic Institute-Korea Agricultural Simulation Model), we studied the impact of changes in domestic and overseas demand for kimchi products on the agricultural sector and the kimchi industry.

As to the overseas market status, we commissioned research to KOTRA's overseas trade office. We investigated the current status of eight local markets in four countries: Beijing, Shanghai, and Qingdao in China, Los Angeles and New York in the United States, Tokyo and Osaka in Japan, and Taipei in Taiwan. We asked the Food and Nutrition Research Institute of the Ministry of Agriculture of China to review the current status of the kimchi market in China and the production and export of kimchi. Additionally, we commissioned various experts to write manuscripts to examine the kimchi-related cultural and educational projects and R&D status.

(For more information, please refer to the report.)

Researchers: Hwang Yunjae, Park Kihwan, Park Sihyun
Research period: 2020. 1. ~ 2020. 10.
E-mail address: yjhwang@krei.re.kr