Daesang opens first kimchi factory in LA to meet growing demand for Korean food in the US

Daesang revealed it has launched its kimchi factory in Los Angeles, and this officially became the very first kimchi production facility in the United States. The company set up the plant to meet the growing demand for traditional Korean food in the country.

Daesang said on Tuesday, March 29, that it is also planning to distribute the kimchi from its U.S. factory to European countries, Australia, and Canada. The South Korean food company can see that kimchi is fast becoming part of K-culture’s popularity. This was due to the Korean wave that people worldwide have come to know due to Kpop stars and TV series such as the BTS and “Squid Game.”

As per The Korea Times, Daesang is the first Korean food company to produce kimchi in the U.S., and it was noted that no other local brand has a facility for making kimchi there. The firm put up $16.39 million or ₩20 billion to manufacture 2,000 tons of kimchi per year. With its sales from this kimchi production, Daesang expects to reach the annual sales estimate of ₩100 billion by 2025.

"The U.S. market is important for our globalization plan for kimchi products,” an official of Daesang said in a statement. “Our American facility will help us cope flexibly with the global logistics crisis while strengthening the reach and development of the traditional staple food tailored to local tastes. Once our facility in Los Angeles becomes stable, we will build more plants in America."

For its overseas market, Daesang will be producing 10 kinds of kimchi in its LA plant. There will also be several flavors to satisfy the taste of the locals, such as the less spicy flavor. The company will offer product lines including vegan kimchi, white kimchi, and beet and pickle kimchi.

The main ingredients of the kimchi, like napa cabbage, green onion, and daikon radish, are all going to be sourced from farmers and producers near the LA plant. The company already has contracts with American suppliers for all of its ingredients. Daesang is buying the ingredients locally because this is one way it can best localize kimchi for the palate of the Americans.

Finally, The Korea Herald reported that the construction of Daesang Group’s U.S. kimchi facility is complete and in operation already. Through this new plant, the company is also looking to further expand its exports in other markets worldwide.