Nongshim Sets New Overseas Sales Record... Shin Ramyun, the No.1 and 1 Trillion Won K-Food That Moved the World

$990 Million Record High Sales
Shin Ramyun's Strong Performance Amid COVID-19, Rising Status of K-Food

[Asia Economy Reporter Lee Seon-ae] Nongshim's total overseas sales (combined export and overseas subsidiary sales) are expected to record an all-time high this year. On the 4th, Nongshim announced that overseas sales are projected to reach $990 million by the end of the year, a growth of about 24% compared to the previous year. Major subsidiaries in the U.S., China, and other countries achieved double-digit growth, and with the global surge in ramen consumption due to COVID-19, export performance also increased significantly.

The national representative "Shin Ramyun" made Nongshim a global brand. Shin Ramyun is expected to generate about $390 million in overseas sales this year, showcasing the status of K-food. Notably, Shin Ramyun was recognized as the world's best ramen in various overseas outlets, including The New York Times. Nongshim evaluated, "Shin Ramyun is Korea's representative and the world's most inspiring No. 1 food Hallyu brand."

Global market research firm Euromonitor announced on the 26th of last month that Nongshim rose to 5th place worldwide, led by steady overseas sales growth.

$990 Million, Record High Sales

Nongshim forecasts that total overseas sales this year will reach $990 million, a 24% increase from the previous year. The success of Shin Ramyun, the popularity of Chapaguri, and the impact of COVID-19 drove this record performance. Since early this year, interest and sales of Korean ramen such as Shin Ramyun, Chapagetti, and Neoguri have increased, and as COVID-19 rapidly spread to the U.S., Europe, and other regions, demand for convenient meals surged, leading to a sharp rise in ramen consumption. Nongshim responded flexibly to demand by operating production lines at full capacity in the U.S. and China and increasing export volumes.

The European export market showed remarkable growth in countries like the UK and Germany. Nongshim steadily built its sales network centered on major retailers such as Tesco, Morrisons, and Asda in the UK, and Rewe and Edeka in Germany, actively absorbing local ramen demand after the outbreak of COVID-19. Nongshim's European export revenue is expected to increase by 30% compared to last year.

The most prominent overseas market this year is the U.S. Sales from the U.S. subsidiary, including Canada, are expected to reach about $326 million. This represents approximately 28% growth from the previous year, making the U.S. Nongshim's leading overseas business market, surpassing China this year.

Since entering all Walmart stores worldwide in 2017, Nongshim has been conducting aggressive marketing in the U.S. mainstream market. This year, it continued to expand sales focusing on major retailers such as Walmart, Costco, and Kroger. Sales at Walmart and Costco are expected to increase by 47% and 37%, respectively.

Especially after COVID-19, Nongshim ramen, previously considered a snack, has been recognized as a meal substitute, boosting the popularity of flagship products like Shin Ramyun and Shin Ramyun Black. In June, The New York Times, one of the top three U.S. daily newspapers, named Shin Ramyun Black the world's best ramen. Additionally, global travel site The Travel and the major U.S. YouTube channel Good Mythical Morning selected Shin Ramyun Black and Shin Ramyun, respectively, as the world's best ramen. All cited the taste and quality of Shin Ramyun as the key to its popularity. The Shin Ramyun brand is expected to achieve $120 million in sales in the U.S., a 26% increase.

An Euromonitor official explained, "One major impact of COVID-19 is that consumers have become more interested in healthy food. When choosing ramen, there has been a tendency to select higher-quality ramen, and Nongshim's Shin Ramyun brand fits well with this trend."

Shin Ramyun is the core of Nongshim's overseas business. This year, overseas sales of the Shin Ramyun brand are expected to grow about 30% from the previous year to approximately $390 million. It holds a dominant presence, accounting for about 40% of Nongshim's overseas business. It is the original K-food competing with global food makers beyond Korea.

Nongshim stated, "The spicy taste of Shin Ramyun is moving the world beyond Korea," and added, "Next year, marking its 35th anniversary, we aim to grow it into a mega brand with annual sales of 1 trillion won, further elevating the status of K-food."

Nongshim set its overseas business sales target for next year at $1.11 billion, 12% higher than this year.