Paldo Bibimmyun Holds 60% Market Share
Maintains Unrivaled Lead for 37 Years
Nongshim Bae Hong Dong and Ottogi Jin Bibimmyun
Fierce Competition for Remaining 40%
[Asia Economy Reporter Lim Hye-seon] As the summer ramen market competition intensifies, the bibim-myeon (spicy mixed noodles) market appears to be reorganizing into a one-strong, two-medium structure. In the prelude to the summer peak season, the formula ‘Bibim-myeon = Paldo’ remains unbroken.
According to the distribution industry on the 19th, among the bibim-myeon sales of the three convenience store chains, ‘Paldo Bibim-myeon’ accounts for 55-60% of the total. This is similar to last year’s market share (60%). Currently, at convenience stores, Nongshim’s ‘Baehongdong’ and Ottogi’s ‘Jin Bibim-myeon’ are sold at 700 won and 650 won respectively, discounted by 350 won and 300 won from the regular price. Despite Paldo Bibim-myeon being 200-250 won more expensive at 900 won, it still maintains the number one sales ranking. Paldo Bibim-myeon sold about 14 million units across all distribution channels in the past month. Baehongdong and Jin Bibim-myeon account for about 25-27% and 15-18% of sales respectively.
Accordingly, it is expected that Paldo Bibim-myeon’s dominance will be difficult to break this summer as well. In response to challenges from newcomers like Nongshim’s Baehongdong, Paldo Bibim-myeon appointed actor Jung Woo-sung as its main face and released a spring season limited edition with an added 8g liquid bibim soup. First introduced in 1984, Paldo Bibim-myeon has maintained an unrivaled lead in the domestic market for 37 years. It surpassed 100 million units in annual sales for the first time in 2018, and sold 125 million units last year.
However, Nongshim Baehongdong’s rapid progress is notable. Last year, Nongshim promoted ‘Chal Bibim-myeon’ in the bibim-myeon market but failed to rank high in sales across distribution channels. Ottogi’s Jin Bibim-myeon increased its market share to 25%. This year, the competition is neck and neck. Nongshim, determined to improve, launched the new product Baehongdong and hired broadcaster Yoo Jae-suk as its model for an extensive promotional campaign. As a result, Baehongdong’s market share quickly rose to around 20%. Baehongdong’s monthly sales volume is 9 million units. During the same period, Ottogi, which also sold 9 million units, actively conducted discount marketing by appointing Baek Jong-won, CEO of The Born Korea, as the model for Jin Bibim-myeon for the second consecutive year.
The reason the food industry is focusing on the bibim-myeon market is because the market is growing significantly. According to the food industry, the domestic bibim-myeon market size, which was around 90 billion won in 2016, grew to 140 billion won last year and is expected to exceed 150 billion won this year. Every spring, the ramen industry releases various new products to secure the summer ramen market. In 2019, Nongshim launched ‘Seaweed-rich Chojang Bibim-myeon’ and ‘Acorn Jjoljjol-myeon’, Samyang Foods released ‘Seaweed Sour Bibim-myeon’ and ‘Fried Jjol-myeon’, and Ottogi introduced ‘Seaweed Vinegar Bibim-myeon’ and ‘Wasabi Real Jjol-myeon’, with each company launching two new products. Last year, Ottogi released Jin Bibim-myeon, Samyang launched ‘Burning Chili Bibim-myeon’, and Nongshim introduced ‘Kal Bibim-myeon’. A food industry official explained, "Paldo Bibim-myeon is expected to maintain a market share of around 60% this year as well," adding, "Nongshim and Ottogi are fiercely competing for the remaining 40% market share."
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