Korean bakery brand Paris Baguette is embarking on a significant expansion into the halal food market.
Led by SPC Group’s Chairman Heo, the project involves the establishment of a global halal factory in Johor, Malaysia, with an investment of approximately $30 million. This factory spans 12,900 square meters and features seven state-of-the-art production lines. It is equipped to produce a maximum of 100 million bakery-related products annually, including various items such as bread, cakes, and sauces.
Notably, Paris Baguette has obtained halal certification for this factory in Malaysia, ensuring that Muslim consumers can safely enjoy its products. The products manufactured at the Johor Bahru facility will be supplied not only to Malaysia but also to Southeast Asian countries such as Singapore, Indonesia, Vietnam, and Cambodia, as well as to the Middle East, including Saudi Arabia, the UAE, Qatar, Kuwait, and Bahrain. This marks the company’s strategic move to target the global halal market, valued at approximately $2 trillion, using Malaysia as a base.
SPC is also planning aggressive investments in Malaysia. The company aims to further enhance its production capacity by constructing additional halal-certified baking factories and is expected to ramp up its efforts to penetrate the global halal market. Last month, it secured an additional factory site of about 5.9 acres (24,000 square meters) in the Nusajaya Tech Park (NTP) located in Johor Bahru.
Paris Baguette is also showing rapid growth in the U.S. market. In 2020, the number of stores in the U.S. was only 86, but this number has been increasing steadily each year. In 2021, it grew to 94, representing a 9.3% increase, and in 2022, it surpassed the 100-store mark for the first time, reaching 115 locations. By 2023, the number is expected to rise to 120, and projections for 2024 suggest a leap to 198 stores, reflecting an average annual growth rate of 30.56%.
Johor Governor Onn Hafiz Ghazi welcomed Chairman Heo’s investment commitment, stating that the new factory is expected to create over 100 jobs. He remarked, “The success of SPC is expected to have a positive socioeconomic impact on Johor Bahru. The state government will generously support SPC’s growth.“
Heo Jin-soo, CEO of SPC Group, stated, “This global halal factory is a long-cherished project of Chairman Heo Young-in, emphasizing the importance of the Southeast Asian and Middle Eastern markets. We will work closely with Johor state to successfully complete its construction.” He further emphasized the company’s commitment to continuously explore ways to develop alongside Johor.
In conclusion, Paris Baguette’s entry into the halal food market represents a significant milestone in the globalization of the Korean brand and is expected to generate positive responses in the U.S. halal food market as well. The company’s future endeavors are highly anticipated.
