$990 Million Record High Sales
Shin Ramyun Excels Worldwide, Elevating K-Food Status
Aiming for 3rd Place Globally... Shin Ramyun 1 Trillion Brand
[Asia Economy Reporter Lee Seon-ae] Nongshim, the No. 1 ramen company in Korea, continues to set new records day after day. Solidifying its position as the world's 5th largest ramen company, it is expected to achieve the highest overseas sales record ever this year. Furthermore, Nongshim's flagship brand, Shin Ramyun, will also claim the title of a 1 trillion won brand.
Nongshim Rises to 5th Place Among Global Ramen Companies
Nongshim has risen to 5th place among global ramen companies. According to Euromonitor's '2019-2020 packaged food-instant noodle' statistics released on the 7th, Nongshim became the first Korean company last year to rank 5th in the world with a 5.3% market share. This year, with a 5.7% market share, it is expected to widen the gap with the 6th place and firmly maintain its 5th place position. Nongshim stated that its rapidly growing overseas sales have continuously increased its market share. Euromonitor finalized last year's rankings and announced the expected rankings for this year through this data.
Euromonitor forecasts that the global ramen market size will grow by 11.3% to approximately 41.2 billion USD this year. The impact of the novel coronavirus disease (COVID-19) is seen as a factor that increased ramen consumption worldwide.
The No. 1 global ramen market share belongs to China's Kangshifu (康師傅). Its expected market share this year is 13.4%. Kangshifu is the top ramen maker in China, mainly selling popular products like Hong Shao Niu Rou Mian (braised beef noodles) in the domestic Chinese market. Simply dominating the world's largest ramen market with 1.4 billion people allows it to maintain the No. 1 position globally.
In 2nd place is Japan's Nissin (日?), the first company to develop instant ramen. Nissin is Japan's top ramen company with a 9.9% market share and is actively expanding globally. Following are Indonesia's Indofood (7.5%) and Japan's Toyo Suisan (東洋水産, 7.3%).
A notable point is Nongshim's upward trend. Among the top 5 global ramen companies, Nongshim is the only one steadily increasing its market share. Nongshim raised its market share from 5.0% in 2017 to 5.7% in just three years. In contrast, Kangshifu, Nissin, and Indofood have not significantly changed their market shares over the past three years.
Especially this year, Nongshim's market share gap with 3rd place Indofood is 1.8 percentage points, and considering its recent aggressive global business moves, it is analyzed that Nongshim could reach 3rd place in the world market within a few years. The strong sales of Shin Ramyun and Shin Ramyun Black, along with the planned operation of the second U.S. factory covering the entire American region, strengthen this outlook.
Moon Kyung-sun, Chief Researcher at Euromonitor Korea, explained Nongshim ramen's popularity by saying, "Due to COVID-19, overseas ramen demand increased, and Nongshim seized this opportunity to deeply penetrate various national markets," adding, "This movement changed people's perception that ramen is typically Japanese or Chinese food."
Record High Sales of 990 Million USD
Nongshim's total overseas sales this year are expected to reach 990 million USD, 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, the demand for convenient meals surged, boosting ramen consumption. Nongshim responded flexibly to demand by fully operating local production facilities in the U.S. and China and increasing export volumes.
In the export front, the European market saw remarkable growth in countries like the UK and Germany. Nongshim steadily built its sales network centered on major distributors 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 sales are expected to increase by 30% compared to last year.
The most outstanding overseas market this year is the United States. Sales of the U.S. corporation, including Canada, are expected to reach about 326 million USD. This represents approximately a 28% growth from the previous year, making the U.S. Nongshim's leading overseas business market, surpassing the Chinese corporation this year.
Since entering all Walmart stores, the world's largest retailer, in 2017, Nongshim has been conducting aggressive marketing in the U.S. mainstream market. This year, it continued to expand sales focusing on major distributors 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. Following this, the 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 its highest sales of 120 million USD 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," adding, "When choosing ramen, there is 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, the overseas sales of the Shin Ramyun brand are expected to grow by 30% from the previous year to about 390 million USD. 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 said, "The spicy taste of Shin Ramyun is moving the world beyond Korea," and added, "In the coming year, marking its 35th anniversary, we will grow it into a mega brand with annual sales of 1 trillion won, enhancing the status of K-food."
Nongshim has set its overseas business sales target for next year at 1.11 billion USD, 12% higher than this year.
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