Samyang Buldak Bokkeummyeon Captivates China... Paldo Dosirak Conquers Russia

Samyang Foods, Buldak Brand Sales Triple in 3 Years
In Russia, Lunch Boxes Consumed 3 Per Person

[Asia Economy Reporter Choi Sunghye] Samyang Foods is leading the K-ramen craze in China and Southeast Asia, while Paldo is doing so in Russia.

Buldak Bokkeummyeon Captivates China and Southeast Asia

According to Samyang Foods on the 7th, fueled by the global popularity of the Buldak brand, overseas sales have nearly tripled in the past three years. The proportion of overseas sales in total revenue has also increased by 50%. Samyang Foods, which produces all export volumes domestically without overseas production plants, achieved exports of $100 million in 2017 and $200 million in 2018, currently accounting for half of Korea's ramen exports.

China is the largest export market for Samyang Foods, accounting for 50% of its exports. Chinese export revenue grew nearly threefold from 45 billion KRW in 2016 to 125 billion KRW in 2019, quickly establishing China as Samyang Foods' largest export country. During the 2019 Singles' Day, about 4.4 billion KRW (25.1 million yuan) worth of products were sold in one day, proving the power of the Buldak brand, and annual sales in China surpassed 125 billion KRW, marking the highest performance since entering the market.

In the first half of this year, sales increased by a remarkable 70% compared to the same period last year. In the second half, marketing efforts will focus on social network services (SNS), including producing a Buldak brand CM song and choreography video, and conducting live broadcasts on Taobao with famous influencers. Promotion will be intensified during the largest shopping festival, Singles' Day, led by Kwak Girin.

Sales are steadily increasing in the Southeast Asian market, which accounts for 35% of total exports. Since its initial entry, Samyang Foods targeted the Muslim market by obtaining KMF Halal and MUI Halal certifications for Buldak Bokkeummyeon. The largest export countries in the region are Malaysia and Thailand, each recording annual sales exceeding 10 billion KRW. In Malaysia, products are currently sold mainly through large supermarkets such as Giant, AEON Mall, Cold Storage, and convenience store channels like 7-Eleven and MyNews.com. In Thailand, a sales contract was signed in 2019 with 'Sino Pacific,' a local import distribution company, and sales channels, previously concentrated in Bangkok, are rapidly expanding nationwide.

In the United States, demand for the Buldak brand increased among Asian communities starting from 2016, when the Fire Noodle Challenge craze began, leading to expanded export volumes. Sales grew from 8 billion KRW in 2016 to 25 billion KRW in 2019, and in the first half of this year, sales reached 28 billion KRW, a 140% increase compared to the same period last year despite the impact of COVID-19.

The Buldak brand accounts for about 70% of U.S. exports, currently selling noodle products such as Original Buldak Bokkeummyeon, Nuclear Buldak Bokkeummyeon, Carbo Buldak Bokkeummyeon, Cheese Buldak Bokkeummyeon, as well as convenient foods and sauces like Buldak Tteokbokki and Buldak Sauce. Emphasizing spiciness, the brand mainly targets the Hispanic market. Products are sold at major Hispanic markets in the U.S., such as Super Rio Grocer and El Super, and at Costco stores in Texas and California. Samyang Foods plans to actively pursue entry into mainstream markets like Walmart and Kroger and conduct various marketing activities targeting local consumers.

A Samyang Foods official stated, "We will stabilize the online and offline distribution networks established in local markets and focus on expanding exports through brand marketing. We plan to lay the foundation for growth as a global food company through various promotions targeting young consumers."

Russia's National Ramen 'Dosirak'

When mentioning Paldo, Russia is an indispensable country. Paldo began to accelerate its overseas business in earnest in December 1991, when it first exported 21,000 boxes of 'Dosirak' to Russia. Russian sales, which were 2.1 billion rubles in 2005, surpassed 10 billion rubles in 2018. In terms of quantity, about 500 million units were sold, meaning that each Russian consumed three units on average.

By 2019, cumulative sales reached 5.4 billion units. For several years, Paldo has maintained an unwavering market share of over 60% in the cup noodle market. As proof of being the national ramen, Dosirak can be found throughout Russia. Some Russians even refer to ramen as 'Dosirak.' Paldo's solid foothold in the Russian market dates back to the 1998 moratorium (payment deferral). While many companies rushed to leave Russia, Paldo decided to stay and expanded sales channels from Vladivostok to Siberia and the Ural region, increasing market share.

Thanks to these efforts, exports of various Paldo ramen products besides Dosirak have steadily increased. As of last month, Paldo's overseas ramen sales increased by about 30% compared to the previous year. Sales reached 33.2 billion KRW in the first half of this year, about 76% of last year's annual sales.

A Paldo official explained, "With the growing interest in K-food in the second half of the year, we plan to strengthen promotions focusing on spicy and kimchi-flavored products familiar to foreigners. We will continue to launch differentiated new products tailored to expanding store entries in mainstream channels, including the ongoing entry into Costco in the U.S."