CJ Foods, the food business unit of CJ CheilJedang, is building new food manufacturing facilities in Hungary and South Dakota, USA to meet rapidly increasing consumer demand for Korean and Asian cuisine. The investments support scaling its business in Europe, a key region for future growth, and strengthening its leading market position for Asian snacks and appetizers in the U.S. The company held a joint event with the Hungarian Investment Promotion Agency (HIPA) yesterday to announce the plant’s construction plans.
The new Europen K-food factory will be located in Dunavarsány, near Budapest, Hungary, on a 115,000 square meter (approximately the size of 16 soccer fields) site. With an investment of approximately 100 billion KRW, the facility will be equipped with state-of-the-art automated production lines to support the production of bibigo dumplings. The factory is scheduled to open in the second half of 2026. Plans to add a bibigo Chicken production line are also in place for future expansion.
The Hungary plant will help CJ Foods meet the growing demand for dumplings in the European market, which is increasing annually by over 30%. The company also plans to use Hungary as a base for further expansion into Central and Eastern European countries including Poland, the Czech Republic, Slovakia, as well as the Balkans. CJ has secured support from the Hungarian government for the construction of the plant.
In the U.S., CJ Schwan’s, an affiliate of CJ Foods, announced the start of construction on a new Asian-style food manufacturing facility on a 575,000 square meter site in Sioux Falls, South Dakota. The project includes an initial investment of more than 700 billion KRW (500 million USD). Scheduled to be completed in 2027, the facility will include production lines for bibigo steamed dumplings and egg rolls sold in the food service industry and a warehouse, distribution center, and office space.
South Dakota was chosen for its central location, robust infrastructure with interstate highways and air transportation, a strong education system to train and recruit the plant’s workforce, and a favorable business environment with strong support from local and state governments. This strategic investment will enhance CJ Foods’ ability to efficiently serve the growing demand for Asian food across North America.
CJ Schwan’s is the leading producer of Asian-style snacks and appetizers in the U.S., with the flagship bibigo brand holding a 42% market share in the U.S. B2C dumpling market. From January to September of this year, bibigo dumpling sales in the U.S. increased 33% year-on-year, more than double the overall growth rate of the market over the same period. Additionally, the company aims to increase sales in the U.S. roll market, valued at over 1 trillion KRW (700 million USD) annually, solidifying its position as the leading Asian food manufacturer in the country.
On November 13, CJ Schwan’s held a groundbreaking ceremony in Sioux Falls, featuring CJ Foods CEO Minsok Pak, CJ Schwan’s CEO Brian Schiegg, South Dakota Governor Kristi Noem, and other state, local, and civic leaders. “Strategically, this investment in the US market is vitally important to our ability to meet the growing consumer demand for Korean food and other Asian cuisines.” said Pak, “and we appreciate the support we have received from the state of South Dakota.”
CJ’s investment in expanding production capacity reflects its commitment to further scale up its fast growing global food business. The company’s overseas food sales have grown more than 70% over the past four years, from 3.15 trillion KRW in 2019 to 5.381 trillion KRW last year. During this period, overseas sales as a percentage of total food sales increased from 39% to 48%.
Among the global markets, Europe is a strategic region for CJ’s “Global K-Food Expansion” plans, with sales in the third quarter of this year growing 40% year-on-year. The U.S. remains a key market, accounting for more than 80% of overseas food business sales.
“Through proactive investment in production capabilities, we are poised to lead the globalization of K-food and assert our industry leadership,” said a CJ spokesperson.
CJ has been steadily expanding its overseas production facilities. In the U.S., the company operates 20 food production facilities, including Schwan’s plants, which were acquired in 2019. In Europe, it secured its first production base by acquiring the German frozen food company Mainfrost in 2018, and established subsidiaries in France and Hungary in May of this year. In 2022, the company completed the Kizuna Plant in Vietnam, which serves as a production hub for Vietnam and neighboring countries. CJ recently secured an OEM facility in Australia to produce dumplings and kimchi locally.
