CJ CheilJedang plans to expand Hetbahn, its instant rice brand marking its 30th anniversary this year, into functional product lines such as multigrain and high-protein rice while accelerating its overseas business. The strategy calls for diversifying products at home to match changing eating habits and rising demand for health management, while expanding abroad on the appeal of sticky Korean-style rice. The company aims to grow Hetbahn into a brand with annual revenue of 1.5 trillion won ($1.04 billion) by 2028.
CJ CheilJedang announced the medium- to long-term growth strategy at a press briefing held on the 21st at its CJ Blossom Campus in Jincheon, North Chungcheong Province. "Since its launch in 1996, Hetbahn has steadily expanded its lineup in line with changes in consumer eating habits, adding products such as Cupbahn, Sotbahn and multigrain rice," said Kim Sook-jin, head of food marketing at CJ CheilJedang. "Going forward, we will grow the domestic market with products featuring enhanced nutritional design, including high-protein offerings, and broaden our overseas consumer base to build it into a brand with annual revenue of 1.5 trillion won by 2028."
Launched in 1996 as Korea's first aseptically packaged rice, Hetbahn topped 1 trillion won in annual revenue for the first time in 2023, at 1.08 trillion won on a retail price basis. It grew to 1.18 trillion won last year, a record high, and cumulative revenue over the 30 years through the end of this year is expected to reach about 10 trillion won.
Multigrain rice is the area CJ CheilJedang is focusing on in its domestic business. As more consumers consider not only how much carbohydrate they consume but also nutritional content, the company is concentrating on developing nutritionally functional products by using a variety of grains and adjusting protein and dietary fiber levels. Multigrain rice accounted for nearly 30% of Hetbahn's domestic instant rice revenue last year, up from around 10% in 2019.
In December, the company will launch Hetbahn Protein Multigrain Rice, using "protein rice" made by processing plant-based protein into the shape of rice grains. The product applies an ingredient derived from soybeans, wheat and peas and shaped like rice, delivering protein content equivalent to more than three egg whites.
Overseas, the company is focusing on widening the consumer base for sticky Korean-style rice, centered on the United States. Hetbahn is currently produced at its Busan and Jincheon plants and exported to more than 60 countries, including the United States, Canada, Australia and Mexico. Since entering the U.S. processed rice market under the Bibigo brand in 2017, overseas revenue has grown about 30% a year on average over the past five years. Overseas business accounted for 15% of total Hetbahn revenue last year, up from 8% in 2021. CJ CheilJedang aims to raise that to about 25% by 2028. Kim said there is considerable room for market expansion, noting that Hetbahn's consumer penetration rate in the United States currently stands at only about 2%.
The company is paying attention to the growing number of U.S. consumers who view rice as a healthy source of carbohydrates. In a survey CJ CheilJedang conducted in the U.S. market, 34.6% of respondents said they buy rice because it is a healthy option. American consumers are using sticky Korean-style rice not only in Asian dishes such as fried rice and sushi but also in local menus including chicken, steak, burritos and rice bowls. According to global market research firm Mintel, the share of U.S. consumers who eat rice at least once a week rose to 45% last year from 37% in 2023.
In line with that, CJ CheilJedang is running a "Sticks To Anything" campaign through electronic billboard advertising in New York's Times Square and collaborations with influencers. The company plans to expand its product range to reflect local eating habits and to introduce rice menus commonly eaten in Korea to overseas markets.
"Since introducing Korea's first aseptic rice process, Hetbahn has accumulated technologies to keep the taste of its rice consistent, from quality control at the rice cultivation and harvest stages to low-temperature storage and same-day milling," said Oh Ye-jin, a principal researcher at CJ CheilJedang. "Based on these manufacturing process technologies, we expanded our lineup to include multigrain rice and Sotbahn, and more recently we have broadened our research and development into nutritional design technologies that enhance protein and dietary fiber."