Ramen Heating Up with Home Cooking... AI Identifies 'China' as a Promising Market

[Asia Economy Reporter Hwang Yoon-joo] As the home cook culture has become popular worldwide due to the novel coronavirus infection (COVID-19), exports of instant noodles such as ramen from South Korea have been performing well. Among the promising ramen export markets analyzed by artificial intelligence (AI), China was identified as the top market.

According to the "Promising Items AI Report ? Instant Noodles and Ramen" released on the 10th by the Korea International Trade Association's International Trade and Commerce Research Institute, global demand for convenience foods such as ramen has expanded due to the spread of COVID-19. As a result, South Korea's exports of instant noodles and ramen from January to October this year recorded $572.57 million, a 32.4% increase compared to the same period last year.

Based on AI analysis combining nine indicators from 58 major countries, the markets with the highest export potential for instant noodles and ramen were China (93.1 points), the United States (87.1 points), and Hong Kong (86.5 points), in that order. China was evaluated as the most promising market due to advantages such as a high import growth rate (18.6%), import market share (54%), and import value ($230.74 million).

In particular, China's import growth rate for instant noodles and ramen has maintained a steep double-digit increase, starting with 43.7% in March this year and reaching 104% in April. Along with this, the market share of Korean instant noodles and ramen has continued to expand, increasing from 49% in 2018 to 58% during January to July this year. In contrast, the market share of Taiwanese instant noodles and ramen competing in the Chinese import market declined from 17.6% in 2018 to 9.6% during January to July this year.

Researcher Yoo Seo-kyung from the Korea International Trade Association said, "Ramen appeared in the movie Parasite, which won last year's Academy Award, attracting attention from overseas consumers. The characteristics of emergency food during the COVID-19 situation and the enhanced national image due to successful K-quarantine measures have collectively contributed to the rising popularity of Korean ramen." She added, "As global demand for convenience foods is expected to continue increasing, if efforts such as developing products tailored to each country's preferences and pioneering new sales channels are combined, exports are expected to keep expanding."