Indonesia-based meat substitute maker Green Rebel has suspended its operations in South Korea just one year after entering the market. The decision is believed to have been made in consultation with the Korean affiliates to improve management efficiency amid ongoing financial losses.
According to the food industry, on May 9, Green Rebel recently exited the Korean market. The company entered Korea in April last year with SDF International, a Korean trading company, as its distributor. Green Rebel products, such as ‘Eating Does Matter,’ were sold through online malls but are no longer available. Green Rebel produces alternative proteins using mushrooms, soybeans, and oats, supplying ingredients to restaurants and catering companies and directly selling products like steak, karaage, and burger patties to consumers.
Green Rebel has partnered with global food companies such as Starbucks and Domino’s Pizza and operates ‘Burgreens,’ a plant-based restaurant chain in Indonesia. The company has an international presence, focusing on Southeast Asian countries like Singapore, the Philippines, and Malaysia.
In Korea, CJ CheilJedang has invested in Green Rebel. By the end of last year, CJ CheilJedang had invested around $1.3 million (1.8 billion won) to acquire a 2.75% stake in Green Rebel. Initially, CJ CheilJedang acquired a stake in 2022 for $940,911 (1.3 billion won) but increased its investment last year to expand its holdings.
Despite expanding production facilities with these investments, Green Rebel reported a net loss of $2.4 million (3.3 billion won) in 2023, more than eight times larger than the previous year’s loss of 400 million won.
Additionally, the unfavorable exchange rate challenges Green Rebel, as it imports products produced in Indonesia and sells them through distributors in Korea. When Green Rebel entered Korea, the average exchange rate was 1,325 won to the dollar, but as of last month, it had risen to 1,371 won.
Despite its early entry, Green Rebel’s decision to withdraw from the South Korean market seems to be a strategic move considering these challenges. Furthermore, while Korea’s meat substitute market is expanding, established Korean food companies are also active in the sector, leading Green Rebel to conclude that pursuing sales was inefficient.
According to the Korea Agro-Fisheries & Food Trade Corporation (aT), Korea’s meat substitute market was estimated at $18.4 million (25.2 billion won) last year and is expected to grow by 17% to $21.5 million (29.5 billion won) next year. Various players dominate the market, including CJ CheilJedang, Pulmuone, and Shinsegae Food.
An official from Green Rebel said, “We pulled out of the Korean market because the plant-based meat market is relatively small and nascent, and we prefer to focus our resources on doubling down investments into our home market in Southeast Asia.”
