If It's K-Ramen Rewriting History...Global Rush to Stockpile Korean Ramyeon and Surge in Exports

Panic Buying of Korean Ramen in Global Markets Including the US and Japan Due to COVID-19 Pandemic
Nongshim and Samyang Foods See Increased Overseas Sales and Strong Exports... Record-High Q1 Performance

[Asia Economy Reporter Lee Seon-ae] Ramen is solidifying its status as a K-Food (Korean food wave) icon. During the COVID-19 pandemic, Korean ramen, known for its high quality and stable supply, gained global attention, sparking a panic buying frenzy that led to a sharp increase in Korean ramen exports.

According to the Ministry of Agriculture, Food and Rural Affairs on the 18th, ramen export revenue from January to April this year totaled $194 million (approximately 237.8 billion KRW), a 34.5% increase compared to the same period last year. Particularly in March, when the pandemic was at its peak, ramen exports reached 62.6 billion KRW, up 41.6% from the same month last year. Exports to Japan and China surged by 76.3% and 63.2%, respectively, while exports to the United States increased by 20.3%, contributing to significant growth across various countries worldwide. The Ministry explained, "Korean ramen emerged as an essential emergency food and panic buying item due to the spread of COVID-19, which led to the increase in exports."

Samyang Foods Buldak Bokkeummyeon

Ramen’s role as a key player in K-Food was also proven by company performance. Samyang Foods achieved its highest-ever quarterly sales. Revenue rose 29.9% to 156.3 billion KRW, and operating profit increased 73.9% to 26.6 billion KRW. This was due to overseas clients increasing orders in anticipation of supply difficulties caused by logistics disruptions amid COVID-19, pushing exports from 52 billion KRW last year to 77.3 billion KRW, nearly a 50% increase. Additionally, thanks to the popularity of Buldak Bokkeum Myun (Hot Chicken Flavor Ramen), Samyang Foods’ share of Korean ramen exports expanded from 43% last year to 49% in the first quarter of this year, effectively accounting for half of the market.

Leading domestic ramen company Nongshim also enjoyed a COVID-19 boom. First-quarter sales reached 687.7 billion KRW, up 16.8% year-on-year. Operating profit surged 101.1% to 63.6 billion KRW. The global sensation of the movie Parasite also played a role with the 'Jjapaguri (Jjapaghetti + Neoguri)' craze. In February, overseas sales of Jjapaghetti increased by more than 120% year-on-year to $1.5 million, marking the highest monthly performance. March also saw a 116% growth.

A Nongshim representative said, "Following Parasite’s Oscar win in February, Jjapaguri’s popularity spread not only domestically but worldwide, causing a sharp rise in sales of Jjapaghetti and Neoguri. Subsequently, ramen consumption increased globally due to COVID-19. Panic buying of ramen occurred in the U.S., China, Japan, and Europe, leading us to operate local factories at full capacity and significantly increase export volumes to meet demand."

Ottogi’s noodle sales also rose 12.1% to 198.5 billion KRW, with operating profit increasing 46% to 14.6 billion KRW.

The industry expects the K-Food ramen record-breaking streak to continue into the second quarter due to ongoing COVID-19 issues. The frontrunners are Nongshim and Samyang Foods. Nongshim stated, "Ramen demand in overseas markets such as Europe and the U.S. continues to rise sharply in the second quarter. We are expanding exports and actively responding to local market demand through overseas subsidiaries to ensure stable supply without disruption."

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To globalize ramen, Nongshim also launched the cup noodle 'Jjapaguri Big Bowl' in international markets. Sales have begun in the U.S., Southeast Asia, Japan, Australia, and Russia, with plans to gradually expand to more countries. Nongshim expects Jjapaguri to introduce Korean ramen’s new appeal to consumers worldwide and grow as a new flagship of K-Food.

Samyang Foods plans to sustain growth by establishing a more stable overseas sales network and actively marketing Buldak Bokkeum Myun. Since its launch in 2012, cumulative sales of Buldak Bokkeum Myun have reached 2.3 billion units, with about half sold overseas. Last year alone, 460 million units were sold abroad, far surpassing domestic sales of 140 million units.