Thursday, December 25, 2025

‘Tariff Impact’ Slows K-food Exports to the US... Industry Turns Its Eyes to Europe

Input
2025-10-09 18:06:07
Updated
2025-10-09 18:06:07
Amid trade risks such as mutual tariffs between Korea and the US and the growing popularity of K-food, the global growth axis of the domestic food industry is shifting toward Europe. The industry is moving beyond the traditional core market of the US and accelerating its export diversification strategy to regions like Europe. However, stringent food regulations and the need for localization in Europe have emerged as critical challenges for the success of K-food in the region.
According to the Korea Trade Statistics Promotion Institute and industry sources on the 9th, the impact of tariffs imposed by the Donald Trump administration is becoming a reality across industries, casting a shadow over K-food exports to the US. In July, exports of agricultural and processed foods such as ramen and snacks to the US totaled $139 million, a decrease of $10 million (6.7%) compared to the same month last year.
This marks the first year-on-year decline in agricultural food exports to the US since May 2023, a span of 26 months. In August, exports also fell to $132 million, down 4.4% from a year earlier.
The decline in agricultural food exports to the US is attributed to factors such as companies advancing their orders ahead of the high mutual tariffs implemented in August. The US remains the largest export market for Korean agricultural foods, accounting for about 16% of total exports.
With tariff-related trade risks in the US coming to the forefront, the food industry is increasingly looking to Europe as a new growth engine. In fact, exports of agricultural foods to Europe are showing notable growth. According to the Ministry of Agriculture, Food and Rural Affairs (MAFRA), K-food exports to Europe in the first half of this year reached $421 million, up 23.9% from the same period last year.
CJ CheilJedang is currently constructing a new K-food plant near Budapest, Hungary. Starting in the second half of 2026, the company plans to produce bibigo dumplings for sale in the European market and later expand production lines to include bibigo chicken.
Last month, Lee Jae-hyun, Chairman of CJ Group, visited London as part of his first on-site management activities in Europe to assess business expansion opportunities. He emphasized, "Following the US, which is the group’s global business hub, we must actively seek new growth opportunities in the promising European market."
Leading K-food ramen companies are also accelerating their efforts to penetrate the European market.
Nongshim aims to expand sales of key brands such as Shin Ramyun through major European distribution channels including Tesco, REWE, Albert Heijn, and Carrefour. To this end, Nongshim established its European subsidiary in Amsterdam, the Netherlands, in March. The company’s goal is to achieve $300 million in exports to Europe by 2030. Samyang Foods also set up its European subsidiary in Amsterdam in July last year. In addition, Pulmuone opened a sales office in Amsterdam and plans to establish a European sales corporation within the year.
From April 4 to 8 (local time), major Korean food companies participated in Anuga 2025, the world’s largest food fair held in Cologne, Germany, to explore opportunities for entering the European market. Participants included Namyang Dairy Products, Nongshim Taekyung, Daedoo Foods, DAESANG CORPORATION, LOTTE WELLFOOD, Lotte Chilsung Beverage, Binggrae, Sempio Foods Company, Origin Gourmet, Young Poong Group, Paldo, Pulmuone, and HARIM.
Nevertheless, increasingly stringent food regulations in Europe remain a significant hurdle. Since February, the European Union (EU) has tightened regulations, requiring disclosure of nearly all information about production processes and ingredients for the sale of Novel Food. This year, some European countries have also begun discussions on introducing warning labels for ultra-processed foods (UPF).
An industry official noted, "To successfully target the European market, which values traditional food culture, it is more advantageous to highlight Korea’s traditional food culture and health benefits rather than simply emphasizing convenience or innovation. Since it is difficult to quickly build trust in new foods or technologies in this market, companies should focus on long-term trust-building rather than short-term sales growth."
ssuccu@fnnews.com Kim Seo-yeon